FREE General Contractor License Estimating & Bidding Questions and Answers

Question 1

A general contractor is preparing a bid for a new commercial office building.
They are using historical data from similar past projects to estimate the cost per square foot for the structural steel frame.
What type of estimating method is being employed?

Accepted Answer

Parametric estimating

Answer

Bottom-up estimating

Answer

Analogous estimating

Answer

Three-point estimating

Question 2

Which of the following would be considered a 'direct cost' when preparing a bid for a construction project?

Accepted Answer

Cost of lumber and concrete

Answer

Project manager's salary

Answer

Office rent and utilities

Answer

Marketing and advertising expenses

Question 3

During the bidding process, a general contractor receives bids from several subcontractors for the same scope of work. To ensure a fair comparison and select the most suitable subcontractor, what is the MOST critical factor to evaluate beyond just the lowest price?

Accepted Answer

The subcontractor's proposed schedule, qualifications, and past performance

Answer

The subcontractor's social media presence

Answer

The color of the subcontractor's company logo

Answer

The subcontractor's proximity to the general contractor's main office

Question 4

A general contractor is preparing a competitive bid and decides to include a contingency fund. What is the primary purpose of this contingency fund?

Accepted Answer

To account for unforeseen events, risks, or changes in scope during the project

Answer

To cover the general contractor's profit margin

Answer

To pay for the owner's design fees

Answer

To fund the project's marketing efforts

Question 5

When developing a 'bottom-up' estimate for a complex commercial building, what is the fundamental approach?

Accepted Answer

Breaking the project down into detailed work packages and estimating each individually, then summing them up.

Answer

Using a high-level, historical cost per square foot for the entire project.

Answer

Applying a percentage factor to the project's overall direct costs to determine total cost.

Answer

Estimating based solely on the project manager's intuition and experience.

Question 6

In the context of construction bidding, what does 'addendum' refer to?

Accepted Answer

A formal change or clarification issued by the owner or architect during the bidding period, prior to bid submission.

Answer

The final contract signed by the owner and contractor.

Answer

A request for additional information from a subcontractor after their bid has been received.

Answer

The contractor's proposed schedule for the project.

A general contractor is preparing a bid for a new commercial office building.They are using historical data from similar past projects to estimate the cost per square foot for the structural steel frame.What type of estimating method is being employed?

A general contractor is preparing a bid for a new commercial office building.
They are using historical data from similar past projects to estimate the cost per square foot for the structural steel frame.
What type of estimating method is being employed?