Question 1

A bid may sometimes be called a(n)"____" or a "proposal."

Accepted Answer

A bid is often referred to as a "tender" in business or government procurement processes. This term emphasizes the competitive nature of the bid, as multiple parties may be submitting offers for the same project or contract. While "offer" and "proposal" can also be used in some contexts, "tender" is the most commonly used term for bids in formal procurement processes. "Delivery" and "contract" are not accurate synonyms for a bid, as a bid is the initial offer to provide goods or services, while a contract is a legally binding agreement between parties, and delivery refers specifically to the physical transportation of goods.

Question 2

Most contractors use a ____ sheet to gather together all of the constituent prices of the estimate.

Accepted Answer

A bid summary sheet is used to gather together all of the constituent prices of the estimate. It provides an overview of the total cost and breakdown of each element of the project bid. Options A, C, and D are not commonly used in the construction industry to refer to this type of sheet.

Question 3

A construction contract bid is compiled in three stages: the advance stage, the review stage, and the ____ stage.

Accepted Answer

The third stage of a construction contract bid is typically the closing stage, where the bid is finalized and submitted to the client or owner. The other options (finish, clarification, and completion) do not accurately describe this stage of the bidding process.

Question 4

In the bid markup, profit is generally assessed as a compensation for the risk taken by the contractor.

Accepted Answer

Profit is often calculated as a reward for the risk taken by the contractor in carrying out the project.

Question 5

The first step in the cost control process is assembling cost data for use in estimating future jobs.

Accepted Answer

The first step in the cost control process is typically setting a baseline or budget against which actual costs can be compared, not assembling cost data for future job estimates.

Question 6

The recap format for the takeoff items of a unit- price bid is the same as the format used with a lump-sum bid.

Accepted Answer

In a unit-price bid, the recap format involves listing each item, its quantity, and the unit price, then multiplying for a total cost per item, which differs from a lump-sum bid where a single total price is provided for the entire project without a detailed breakdown.

Question 7

The last stage in the preparation of a unit-price bid is to ____.

Accepted Answer

The answer of The last stage in the preparation of...

Question 8

Contractors seldom see an advantage in allowing a higher proportion of overheads and fee against the work being completed early in the project.

Accepted Answer

Contractors often see an advantage in allowing a higher proportion of overheads and fee against the work being completed early in the project. This is because it enables them to cover their fixed costs and potentially earn a greater profit margin later on in the project.

Question 9

Add-ons for small tools and payroll additives are calculated as a percentage of the total labor amount of the bid.

Accepted Answer

Add-ons for small tools and payroll additives are typically calculated as a percentage of the total labor amount of a bid.

Question 10

____ are quoted for proposed changes in the specifications.

Accepted Answer

Alternative prices are quoted for proposed changes in the specifications. This means that if there are changes to the original specifications, alternative prices may be offered as a proposed alternative.

Question 11

A construction bid contract is compiled in three stages which include all of the following EXCEPT the _____ stage.

Accepted Answer

The answer of A construction bid contract is compiled in...

Question 12

The information on a ____ is generally requested to provide a basis for evaluating monthly progress payments on the project.

Accepted Answer

A cost breakdown provides a detailed breakdown of the costs associated with a project, including labor, materials, and other expenses, which is needed to evaluate monthly progress payments. A balance sheet and cash analysis may provide some financial information, but not the details needed to evaluate progress payments. A system breakdown may be important for understanding the project as a whole, but is not specifically related to evaluating progress payments.

Question 13

____ is defined as the amount of money remaining after all project expenses and company expenses have been paid.

Accepted Answer

Profit is the amount of money remaining after all project expenses and company expenses have been paid, which is also known as the net profit or the bottom line. Option A (Labor) refers to the people engaged in the project; option B (Expense) refers to the costs incurred during the project; and option D (Overage) refers to the extra costs incurred beyond the original budget.

Question 14

The estimate-cost control process is linear in nature.

Accepted Answer

The estimate-cost control process is iterative and ongoing, not linear. It involves continually updating cost estimates, tracking actual costs, and implementing corrective actions to manage cost variances.

Question 15

A stipulated sum of money to be expended by a contractor on a specific work item on a project is usually referred to as a ____.

Accepted Answer

A stipulated sum of money to be expended by a contractor on a specific work item on a project is commonly referred to as a cash allowance. This allowance is typically determined by the project owner or client and is included as part of the contract agreement. The purpose of the cash allowance is to allocate a specific amount of funds for a particular work item or component, ensuring that the project stays within budget and that the contractor has enough funds to complete the work item satisfactorily.

Question 16

At the very start of the estimating process, the estimator can set up the summary sheet by checking off the trades that will be completed by "own forces" and those that will be subcontracted.

Accepted Answer

This statement is true. The estimator can set up a summary sheet by checking off the trades that will be completed by their company's own forces and those that will be subcontracted at the start of the estimating process. This can help in organizing the estimating process and determining the scope of work for each trade.

Question 17

Most contractors use a standard format of summary to capture all the main components of an estimate.

Accepted Answer

Contractors use a standard format of summary to capture all the main components of an estimate, such as labor, materials, equipment, and any other costs associated with the project. This helps ensure that all necessary information is included and presented in a clear and organized manner.

Question 18

Whereas lump-sum bids involve calculating a single final price and assembling a list of subtrades, with a unit-price bid, the contractor is also required to complete a "_______", that is, an itemized breakdown of the work of the project.

Accepted Answer

A schedule of prices is an itemized breakdown of the work to be done in a unit-price bid. This breakdown includes quantities of materials, labor rates, equipment expenses, and other costs associated with specific tasks or activities. It provides a detailed cost breakdown that helps the contractor and the client to monitor progress and identify areas of concern throughout the project.

Question 19

The bid markup has one main component: profit.

Accepted Answer

The bid markup typically includes not only profit but also overhead costs, which cover general business expenses not directly tied to a specific project.

Question 20

The ____ function in a construction company will record all the expenses incurred in the operation of the entire company.

Accepted Answer

Cost-accounting is the function that records all expenses incurred in the operation of a construction company. This includes direct and indirect costs related to labor, materials, equipment, and overhead expenses. Cash-accounting, on the other hand, only records cash inflows and outflows, while direct-accounting focuses only on direct costs associated with specific projects. Arrears-accounting refers to recording expenses and payments after they are due, which is not relevant to this context.

Quiz 15: Closing the Bid

A bid may sometimes be called a(n) "____" or a "proposal."