CSLB Estimating, Bidding, and Cost Control

Question 1

Which type of construction estimate is most accurate and is typically used for final bidding?

Accepted Answer

Detailed quantity takeoff estimate

Answer

Order of magnitude estimate

Answer

Schematic estimate

Answer

Design development estimate

Question 2

What is 'overhead' in a contractor's estimate?

Accepted Answer

Indirect costs of running the business not directly attributable to a single project

Answer

The cost of materials for the project

Answer

The contractor's profit margin

Answer

Subcontractor markup

Question 3

A 'lump sum' (stipulated sum) contract means:

Accepted Answer

The contractor agrees to complete the scope for one fixed total price

Answer

The contractor is paid based on actual time and materials

Answer

The owner pays for materials separately

Answer

Payment is made in equal monthly installments

Question 4

In competitive bidding, a 'bid bond' serves to:

Accepted Answer

Ensure the bidder will enter into the contract at the bid price if awarded

Answer

Guarantee project completion

Answer

Cover payment to subcontractors

Answer

Replace the performance bond during bidding

Question 5

The term 'markup' in construction estimating refers to the percentage added to:

Accepted Answer

The total direct cost to cover overhead and profit

Answer

Material costs only

Answer

Labor costs only

Answer

The subcontractor's bid only

Question 6

What is a 'unit price' contract?

Accepted Answer

A contract where prices are set per unit of work, with final payment based on actual quantities

Answer

A contract where the owner pays per square foot of completed space

Answer

A contract limited to specialty trade work

Answer

A contract capped at a maximum price