Bidding and Estimating Flashcards
7 cards from real PC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Bidding and Estimating flashcards as text
When a bid is submitted on a 'lump sum' basis, the contractor is agreeing to:
Answer: Complete the defined scope for one fixed total price
A lump sum contract requires the contractor to complete all defined scope for one agreed total price, bearing the risk of cost overruns.
Which type of estimate is typically used during early project design to determine project feasibility?
Answer: Conceptual or order-of-magnitude estimate
A conceptual or order-of-magnitude estimate uses historical cost data and square footage costs to assess project feasibility before detailed design.
A subcontractor's bid received after the prime contractor's deadline should be:
Answer: Rejected as non-responsive
Late bids are typically rejected as non-responsive since accepting them would be unfair to bidders who met the deadline.
What does 'prevailing wage' mean in the context of electrical bidding on public projects?
Answer: A government-mandated minimum wage rate for specific trades on public work
Prevailing wage laws (such as the Davis-Bacon Act) require contractors on public projects to pay workers at least the locally determined wage rate for their classification.
In a unit price contract, the contractor is paid based on:
Answer: Actual field-measured quantities times the agreed unit price
Under a unit price contract, final payment is calculated by multiplying actual field-measured quantities by the agreed unit prices for each bid item.
Which labor burden component is a mandatory payroll tax paid by employers on the first $160,200 of each employee's wages?
Answer: Social Security (FICA) tax
The employer's share of Social Security (FICA) is 6.2% on wages up to the annual wage base limit, and is a mandatory payroll tax.
When reviewing competitor bids after bid opening, a contractor notices their price is significantly higher. The best corrective action for future bids is to:
Answer: Analyze labor productivity rates and material pricing for variances
Analyzing labor productivity and material pricing variances against actual costs helps identify where estimates are out of alignment with market pricing.