Questions and Answers
These costs are the material, labor, equipment or subcontracted items that are permanently and physically integrated into the ______.
building
Is a type of bid that involves each contractor submitting a lump-sum bid or a proposal in competition with other contractors to build the ______.
project
These bonds guarantee the owner that the contractor will perform all work in accordance with the contract ______.
documents
It is customary for the owner to withhold a certain percentage of the payments, usually how many ______?
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These guarantees that the contract documents will be complied with, and all costs relative to the project will be paid are known as a ______.
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Contractors typically overvalue the initial items on the project which is referred to as ______.
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This type of bidding is often used when owners know which contractor they would like to build the project and is known as ______.
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The contractor will receive this payment when the final ______, certification of completion, acceptance of the work, and required lien releases are completed.
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These guarantees that the contract documents will be complied with, and all costs relative to the project will be ______.
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Written instructions concerning project requirements that describe the quality of materials to be used and their performance are referred to as ______.
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This type of bidding is often used when owners know which ______ they would like to build the project.
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An agreement wherein the owner provides the estimated quantities, and the contractors are in ______.
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Funds paid to the employee for the employee to provide his own tools or for the use of his personal vehicle are known as a ______.
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The process that includes the determination of the quantities and costs of everything that is required to complete the project is referred to as a ______.
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Documents that contain information relative to the design and construction of the project are commonly known as ______.
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Insurance that provides coverage for workers injured on the job is called ______.
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Study Notes
Cost Estimation and Contracting Basics
- Direct Field Costs: Include material, labor, equipment, or subcontracted items permanently integrated into the building.
- Project Comparison Estimates: Assess costs of a proposed project by comparing it to a completed project to determine financial feasibility.
- Competitive Bidding: Contractors submit lump-sum bids, competing against each other to win a project.
- Performance Bond: Guarantees the owner that the contractor will adhere to contract specifications and deliver the project as outlined.
Contract Additions and Payment Practices
- Addenda: Modifications to basic contract documents made after they are issued, often including additional drawings or information.
- Payment Withholdings: It is usual for owners to withhold approximately 10% of payments as a retention strategy until project completion.
- Frontend Loading: Contractors may inflate initial project item values, a practice referred to as front loading.
Final Payments and Bonds
- Acceptance and Final Payment: Contractors receive final payment post-inspection and upon certification of completion, acceptance of work, and lien releases.
- Bond Requirements: Bonds ensure compliance with contract documents and payment of all project costs; if breached, the bond must fulfill contract terms.
- Negotiated Bidding: This process is employed when owners have a preferred contractor in mind for the project.
Multiple Choice Topics
- Design and Construction Information: Specifications provide details regarding project requirements, material qualities, and performance expectations.
- Employee Tool Payments: Cash allowances are funds designated for employees to procure personal tools or use their vehicles for work.
- Cost and Quantity Estimation: Detailed estimates encompass the calculation of all necessary quantities and costs for project completion.
- Material Quality Instructions: Specifications include written guidance on the quality of materials to be used throughout the project.
Miscellaneous
- Agreement on Quantity Estimates: In certain arrangements, the owner provides estimated quantities while contractors produce bids based on this information.
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Description
Test your knowledge on key concepts in construction management including direct field costs, project comparison estimates, competitive bidding, and performance bonds. Understand the essential elements that contribute to the successful completion of construction projects.
