Question 1

The most common reason for failure to perform by a subtrade is the financial collapse of the subtrade.

Accepted Answer

Financial collapse of a subtrade is a common reason for failure to perform, as they may not have the resources to complete their contracted work.

Question 2

Materials are usually quoted including taxes.

Accepted Answer

Materials are usually quoted excluding taxes, as tax rates can vary by location and scenario, and are often added separately to the total cost.

Question 3

One of the general reasons why project costs may exceed estimated prices is takeoff quantities are too high.

Accepted Answer

If takeoff quantities are too high, the estimated cost would be higher as well. Therefore, the actual price exceeding the estimated cost cannot be due to high takeoff quantities. Other factors such as labor costs or material costs could be the reason for the increase in project costs.

Question 4

Most project specifications provide detailed descriptions of the materials to be supplied by the ____.
A)owner
B)materials supplier
C)contractor
D)subcontractor

Accepted Answer

Most project specifications detail the materials that the contractor is responsible for supplying, as they are typically in charge of procuring all necessary materials to complete the project according to the specifications.

Question 5

Where union labor is used, the wage rate will be the rate that is found ____.
A)in federal compensation guidelines
B)in the local union agreement for the craft involved
C)in the national union agreement for the craft involved
D)in the national standard compensation tables

Accepted Answer

Union labor agreements typically set the wage rates for the craft involved. These agreements are negotiated between the union and the employer, and they establish pay scales, benefits, and working conditions for union workers in a particular area or industry. Federal compensation guidelines and national standard compensation tables may provide some guidance, but they are not the definitive source of wage rates for union labor.

Question 6

When a contract states that the contractor will be reimbursed all project costs by the owner plus an added amount for profit, this is known as a ____.
A)contingency
B)cost contract
C)lump-sum
D)cost-plus contract

Accepted Answer

This type of contract is known as a cost-plus contract. The contractor is reimbursed for all project costs, including labor, materials, and any other expenses, and also receives an additional amount for profit. This type of contract is often used in situations where the project scope or timelines may be uncertain, as it provides the contractor with greater financial protection.

Question 7

The unit prices used in an estimate are generally obtained directly from the suppliers.

Accepted Answer

Unit prices in an estimate are often derived from a combination of supplier quotes, historical data, and calculations based on the project's specific requirements, rather than obtained directly from suppliers.

Question 8

When the recap is complete, prices of each trade will be presented in ____ form, which facilitates easier evaluation of the estimate.
A)summary
B)standard
C)generic
D)basic

Accepted Answer

A summary form would provide a concise and organized presentation of the prices of each trade, allowing for easier evaluation of the estimate. Standard, generic, and basic forms may not offer the same level of detail or organization.

Question 9

The contractor has little or no influence over job factors.

Accepted Answer

The contractor has little or no influence over job factors because the job factors are typically determined by the owner or architect.

Question 10

There is a high risk of cost overruns with material estimates.

Accepted Answer

The answer of There is a high risk of cost...

Question 11

The categories considered in the pricing of an estimate include all of the following EXCEPT _______.
A)labor
B)subcontractors
C)job overheads
D)productivity

Accepted Answer

The categories considered in the pricing of an estimate typically include labor, subcontractors, and job overheads. Productivity is not typically considered as a separate category in pricing estimates.

Question 12

Almost all price quotations received from material suppliers will have terms and conditions attached to them.

Accepted Answer

It is common for material suppliers to include terms and conditions with their price quotations. These terms and conditions may include information about payment terms, delivery dates, and any warranties or guarantees associated with the materials. It is important for buyers to carefully review these terms and conditions to ensure they are comfortable with the agreement before making a purchase.

Question 13

A price quoted as ____, in the absence of a definition to the contrary, is interpreted to mean the price includes delivery to the site but the contractor is responsible for the cost of any unloading requirements at the site.
A)C.O.D.
B)F.O.B.
C)C.I.F.
D)D.D.U.

Accepted Answer

F.O.B. (Free on Board) is a shipping term that indicates the seller delivers the goods at a specified location, and the buyer is responsible for unloading them. However, in the context of construction contracting, F.O.B. is typically interpreted to mean that the price includes delivery to the site but the contractor is responsible for the cost of any unloading requirements at the site.

Question 14

The process of pricing an estimate can be divided into four stages.

Accepted Answer

The process of pricing an estimate typically involves more than four stages, including defining the scope, gathering data, analyzing costs, and finalizing the price, among others.

Question 15

In general, all subtrades offer lump-sum bids.

Accepted Answer

Subtrades often provide estimates that can be based on time and materials or other pricing structures, not just lump-sum bids, depending on the project's complexity and uncertainty.

Question 16

A sorted list of items that are part of an estimate is referred to as the ____.
A)summary
B)collection
C)recap
D)capstone

Accepted Answer

The term "recap" is used to refer to a sorted list of items that are part of an estimate, summarizing the details and costs associated with a project or proposal.

Question 17

The nature of the recap breakdown depends on the type of work involved in the project and the type of contract the contractor will be entering into with the owner.

Accepted Answer

The statement accurately describes how the nature of the recap breakdown can vary based on project type and contract type.

Question 18

The risk of bankruptcy by a subtrade can be reduced by calling for ____ from subtrades.
A)performance bonds
B)risk bonds
C)surety bonds
D)conformance bonds

Accepted Answer

Performance bonds guarantee that the subtrade will complete the work according to the contract.

Question 19

The reason for preparing the recap is to bring together all work of a similar nature so that the estimator can concentrate on the needs of one trade at a time.

Accepted Answer

The statement is true. The purpose of a recap is to organize and summarize all work of one specific trade or portion of a project in order to allow the estimator to focus on that specific area and accurately estimate its cost.

Question 20

All of the following are reasons why project costs may exceed estimated prices EXCEPT ________.
A)actual productivity does not meet anticipated productivity.
B)subcontractors or materials suppliers fail to meet obligations.
C)takeoff quantities are too high.
D)takeoff quantities are too low.

Accepted Answer

Takeoff quantities being too high would not cause project costs to exceed estimated prices; instead, it would likely result in an overestimation of costs. The other options (A, B, D) all describe situations that could lead to actual costs being higher than estimated costs.

Quiz 8: Pricing Generally

The most common reason for failure to perform by a subtrade is the financial collapse of the subtrade.

Materials are usually quoted including taxes.

One of the general reasons why project costs may exceed estimated prices is takeoff quantities are too high.

Most project specifications provide detailed descriptions of the materials to be supplied by the ____.

Where union labor is used, the wage rate will be the rate that is found ____.

When a contract states that the contractor will be reimbursed all project costs by the owner plus an added amount for profit, this is known as a ____.

The unit prices used in an estimate are generally obtained directly from the suppliers.

When the recap is complete, prices of each trade will be presented in ____ form, which facilitates easier evaluation of the estimate.

The contractor has little or no influence over job factors.

There is a high risk of cost overruns with material estimates.

The categories considered in the pricing of an estimate include all of the following EXCEPT _______.

Almost all price quotations received from material suppliers will have terms and conditions attached to them.

A price quoted as ____, in the absence of a definition to the contrary, is interpreted to mean the price includes delivery to the site but the contractor is responsible for the cost of any unloading requirements at the site.

The process of pricing an estimate can be divided into four stages.

In general, all subtrades offer lump-sum bids.

A sorted list of items that are part of an estimate is referred to as the ____.

The nature of the recap breakdown depends on the type of work involved in the project and the type of contract the contractor will be entering into with the owner.

The risk of bankruptcy by a subtrade can be reduced by calling for ____ from subtrades.

The reason for preparing the recap is to bring together all work of a similar nature so that the estimator can concentrate on the needs of one trade at a time.

All of the following are reasons why project costs may exceed estimated prices EXCEPT ________.