Questions and Answers of Construction Cost Estimating

Assume the Exercise 1 project will take five days to install. What will your crew size be? What equipment is necessary, and how much will that cost? What other items might the estimator add to this
Other than the tradeoff for less excavation and backfill versus the shoring box rental for Exercise 7, what are some additional complications and potential costs an estimator might consider for a
In Table 18.1 we stated that not all of the contingencies were additive. Why not? Add together the high-end range of each type of contingency.Table 18.1What is the total percentage? What would happen
Of all of the markups discussed in this chapter, which one would not be considered a cost of the work?
Provide another example for each of our contingency categories.
Prepare a spreadsheet comparing the various markups included on the book’s three case study projects. What similarities and differences exist? Is one more accurate than another?
The estimate summary form is organized into five general sections. What does each section represent?
Determine the percentages of the pre-bid day total that are attributable to the direct work versus that from subcontractors from our case study. Use the direct work after the addition of the labor
How are the general conditions and direct work subtotals checked?
It is customary for the OIC to take the pre-bid day estimate home the evening before bid day. What type of information would he or she be checking for? What other documents related to the estimate
Using the buyout values in Exercise 1, develop a new schedule of values for our case study project that was shown in Chapter 20.Data from exercise 1Assume the following buyout values for the case
If you were presenting an open book negotiated estimate to a repeat client, what further breakdown in costs would you make to the GMP presented in Figure 23.1?Figure 23.1 Job: Carpenters Training
Is the owner of a private project required to award to the low bidder? Why might they choose not to?
Why might a project manager want to buy fast?
Revise the lump sum schedule of values (as shown in the right column of Figure 24.3) by combining items to create a l0 line-item schedule of values. This is exclusive of Exercise 1.Figure 24.3Data
Why should both the project manager and superintendent be involved with creating the original bid estimate and schedule?
The cost codes on a project should be the same as what other types of codes? There are several.
How would your answers differ to Exercise 5 if this were an open-book negotiated project with a 75–25% savings split favoring the project owner?Data from exercise 5Utilizing the buyout log
If you were presenting an open book pay request to a repeat client, what additional detail/line items would you make to the GMP SOV Figure 24.3, Column 3?Figure 24.3
What is the riskiest and most difficult part of the estimate to control?
How does the 80–20 rule relate to cost control?
Assume you are the project manager for the Dunn case study project. Utilize the direct work example and subcontract options presented earlier in this book and make an argument why you would perform
Do craftspeople care if a project or an activity is completed within budget and on time?
Who prepares a cost control work package?
Utilizing the buyout log developed in Exercise 1, if the project was to finish with exactly those buyout values equaling as-built costs, and all other estimated costs were to equal actual costs
Revise the lump sum schedule of values (as shown in the far-right column of Figure 24.3) by front-end loading all the fee and general conditions and other markups to the areas of self-performed
Why might the bid estimate not be correct?
Why is it to everyone’s benefit to postpone establishing the pay request schedule of values until after buyout is complete?
Assume the following buyout values for the case study project. Begin with the final bid estimate developed in Chapter 20 and develop a buyout log similar to Figure 24.2. You will have to look at
What is the difference between bid shopping and buyout?
How are as-built estimates related to databases?
Who should prepare an as-built estimate?
What is an as-built estimate? Why is one prepared?
Would a project owner be allowed to see a lump sum GC’s monthly cost forecast?
What is the difference between a change order proposal and a claim?
Why might a project owner want to see the negotiated GC’s monthly cost forecast?
Why should change orders have extensive backup attached to them?
Is it ethical for a private project owner to select a combination of additive and deductive alternates to move their preferred bidder to first place?
List four types of markups that may be found on a change order.
Prepare a stand-alone estimate for a bid alternate such as adding a freight elevator for our case study, from the lowest garage floor up to and including the roof.
How does an estimator determine the unit price for an individual bid item on a unit price contract?
Assume the case study was put on hold for three months during the middle of construction (after the roof is on but before the interior finishes are started). Prepare a claim requesting three
What is the difference between a lump sum bid and a unit price bid?
Prepare a change order for the case study project for an additive scope change valued at greater than $100,000. Include all backup necessary to sell the change.
List at least three steps involved in an ethical buyout process. You may need to look ahead to Chapter 24 to answer this question, or to another project management book.
What similarities might exist between commercial and residential estimates?
Without the benefit of drawings or specifications, would the estimate from Exercise 1 be considered a budget, or a guaranteed maximum price, or a lump sum bid? If your answer was budget, what changes
Why do larger residential developers not have selected subcontractors they use on every project?
Using a cost data guide, such as Means or The Guide, prepare an assemblies estimate for a 2,000 square foot single story residence with at least 20-line items. Apply all of the appropriate markups.
For the residential assemblies estimate prepared in Exercise 1, prepare a list of at least five assumptions and allowances that were used to develop the estimate.Data from exercise 1Using a cost data
How does a small residential general contractor estimate?
Why should bid alternates be estimated straight?
What type of digital tool might an estimator use in soliciting price quotations from prospective subcontractors?
Are you currently using any of the technology tools discussed in this chapter or tools that are not addressed? What are the advantages and disadvantages of technology tools that you are using?
What challenge does an estimator face when using a commercial estimating database for pricing work items in a cost estimate?
You are developing a cost estimate for the construction of a highway in a remote area of Alaska and have obtained a drone to help with preparing the estimate. What type of information would you
Why are drones sometimes used to support preparation of a cost estimate?
You are an estimator providing preconstruction estimating support for a new office building. The designer has developed a BIM to illustrate design concepts as design decisions are made. How could you
What is the basic process for determining a QTO using Bluebeam Revu?
Destini Estimator estimating system allows multiple users to access and work on estimates at the same time. Describe a situation where this capability would be useful.
What are the two digital QTO tools described in the chapter? What is the primary benefit that they provide to an estimator?
You are preparing a cost estimate for the construction of an office building using a digital estimating software. What factors would you consider in deciding whether to use a Master Format or a
What is the difference between an on-premises estimating system and a cloud-hosted estimating system?
What would happen to a GC who violated some of our ethical questions, such as contacting an owner during the bid on a public works project?
Which subcontractors and suppliers would a project manager buy out quickly, not because their price was too low but because of schedule?
If the subcontractor is low and inquiries about their price after the bid has been tendered, how should the question be answered?
When a subcontractor asks how their price stacked up on bid day, how should this question be answered?
Sixteen boxed-in ethical questions and scenarios were raised in this chapter. Prepare answers for each either as topics to debate in the classroom or as homework assignments to be turned in.Ethics
Assume that only one subcontractor bid was received for roofing on a project. After award to the general contractor, that subcontractor indicates they have a bid error. What should the general
In a private owner project, is it acceptable to use a subcontractor whose quote was received after the GC has forwarded its bid to the bid runner?
What are the differences and similarities between these terms: collaborative, contractual, ethical, fair, friendly, legal, moral, and responsible?
How should a young project engineer who has been asked to assist a bid team and receive subcontractor telephone quotations be instructed to respond to subcontractors attempting to find out where
Prepare a list of the advantages or disadvantages of the GC using the direct work estimate on bid day for doors/frames/hardware from Chapter 12 compared to the alternate bid received from Klose for
Why would an unsuccessful bidding GC share subcontractor quotes?
What is a ‘reverse bid auction’? Have you been involved in one of those? Was it successful for the project owner? Was it successful for the GC?
State your thoughts about the following ethics issues. Include the reasoning for your conclusions.a. Bid shopping.b. The post-bid auction process, andc. Issuing subcontracts for amounts below the low
Why would a subcontractor give a lower price to one GC and/or, conversely, a higher price to another GC?
The important topic of ethics has been threaded throughout this book. Look back now on our previous chapters and create a table of ethical issues and/or questions. Propose ‘answers’; however,
Describe a method that the owner might use to get a contractor to lower their bid after the time the bid was tendered.
How long should the bid files be kept for an unsuccessful bid?
Why should the estimator stay with the concrete pump cost of $15/CY already included in the direct work estimate and not modify concrete costs with the concrete pump quote (Figure 13.2) received on
Can the owner of a private project conduct a public bid opening? Why would they choose to do that?
Looking only at Figure 20.4, what are the potential costs or bid risks for the GC, and what are the risks for the project owner?Figure 20.4 Project: Bin Spec 1 24100 Demolition 2 31113 Form Elevated
What are two common methods for the owner of a project to open bids?
How might a GC be ‘sure’ they will receive subcontractor bids on bid day?
What percentage range is used as a guide when comparing the total of the general conditions estimate against the total bid amount?
Prepare an argument why the estimator either should or should not on bid day take the boxed-in quote presented at the end of the cast-inplace concrete systems in Chapter 11 for forming the elevated
When should a preliminary bid day total be made, and why?
Fill in the available information on a sub bid proposal form from the following call by a vendor. What other information is needed, and who should call him or her back? Four addenda have been issued.
Who evaluates the bids and determines which ones will be used in the final bid?
Other than drywall, what are some areas for which several specification sections may be bid separate or combined and a bid day subcontractor spreadsheet should be prepared to facilitate this
What are combination bids, and how are they evaluated?
What are some of the issues you would consider when preparing for a post-bid interview with the owner?
What are the consequences of the bid form not being filled in completely?
Congratulations, you were the lower bidder, but five minutes after the owner’s bidding deadline, a key subcontractor whose price was used in your bid claims error and withdraws its bid. This is a
Who records bids coming in from the subcontractors and suppliers, and on what form?
Assume there are ten minutes left before a bid is due and you are the lead estimator. The OIC is gathering information on whether to make a last-minute adjustment and has come to you for input. What
On a bid day that is expected to be moderately busy, how should the estimator anticipate the activity level to change from the start of the day until time to tender the bid?
Is it ethical to use subcontractor bids received after bid time?
List three activities which need to be done for bid day to run smoothly.

Showing 1 - 100 of 362