General Contractor License Planning and Estimating 3

Question 1

What is the primary purpose of a pre-bid site visit?

Accepted Answer

To assess site conditions that may affect the cost and method of construction

Answer

A pre-bid site visit allows contractors to identify existing site conditions, access issues, and other factors that affect cost and planning.

Question 2

Which type of estimate is typically prepared from schematic or preliminary drawings and is least accurate?

Accepted Answer

Conceptual (order of magnitude) estimate

Answer

A conceptual or order-of-magnitude estimate uses minimal design information and carries the widest range of accuracy, often ±30–50%.

Question 3

A general contractor's bid includes $50,000 for self-performed work and $200,000 in subcontractor quotes. Which portion typically receives a markup for managing subs?

Accepted Answer

Only the subcontractor costs

Answer

Contractors typically apply a markup (often 5–10%) on subcontractor costs to cover coordination, administration, and risk.

Question 4

In the context of construction scheduling, what does 'resource leveling' mean?

Accepted Answer

Adjusting the schedule to smooth out peaks and valleys in resource demand

Answer

Resource leveling adjusts activity timing to avoid over- or under-utilization of labor, equipment, or materials at any point in time.

Question 5

What is the difference between a lump-sum contract and a unit-price contract?

Accepted Answer

Lump-sum is a fixed total price; unit-price pays per measured unit of work

Answer

A lump-sum contract has one agreed total price, while a unit-price contract pays based on actual quantities of work measured in the field.

General Contractor License Practice Test

General Contractor License Practice Test

General Contractor License Planning and Estimating 3