Question

1. Fill in the blank: All the additional, indirect costs necessary to facilitate construction of a project

are known as
(1 Point)
2.
3.
5.
True or False? Estimating of general expenses can only begin when quantity takeoffs
are complete. (1 Point)
4. Fill in the blank: A generator that is meant to be kept on site for the duration of a project, to be
used during multiple work operations would be considered and accounted for as this type of
equipment:
(1 Point)
True or False? Costs of step-back excavation, shoring, and railings on formwork are
usually accounted for under safety-specific costs. (1 Point)
There is a single bid total add-on for the cost of a building permit on our job. The price charge
for a building permit is 2%, and the final estimate subtotal is $20,000,000. What is the true total
bid price? (3 Points)
6. A construction contract bid is compiled in three stages, name them (3 Points):
9.
7. Fill in the Blank: This document contains basic info regarding the bid:
(1 Point)
8. If your construction company costs $2,500,000 per year to run, and you are estimated to do
$50,000,000 that year in work, what would be the minimum bid markup you would expect to
add to the bid? (2 Points)
(1 Point)
True or False? A contractor is paid the bid price no matter what on a Unit-Price Bid.

Answer 1

General expenses cover indirect construction project costs and safety-specific costs include items like shoring and excavation railings. The true total bid price with a 2% permit fee on a $20,000,000 estimate is $20,400,000. The three bid stages are preliminary estimate, detailed estimate, and bid submission.

Step-by-step explanation:

All the additional, indirect costs necessary to facilitate the construction of a project are known as general expenses or overhead. These include the costs that are not directly tied to the construction activities but are necessary for the project's execution, such as site security, trailers, and utilities.

True or False? Estimating general expenses can begin when quantity takeoffs are complete. This statement is false. While it is beneficial to have a detailed quantity takeoff, estimators can begin to predict general expenses before the takeoffs are entirely complete, using historical data and experience as a guide.

A generator that is meant to be kept on-site for the duration of a project, to be used during multiple work operations, would be considered and accounted for as this type of equipment: durable equipment.

True or False? Costs of step-back excavation, shoring, and railings on formwork are usually accounted for under safety-specific costs. This statement is true. These measures are typically considered part of the safety precautions taken on a construction site and would be included under safety-specific costs.

The true total bid price, considering a building permit charge of 2% on the final estimate subtotal of $20,000,000, would be $20,000,000 + (2% of $20,000,000) = $20,000,000 + $400,000 = $20,400,000.

A construction contract bid is compiled in three stages: preliminary estimate, detailed estimate, and bid submission.

This document contains basic info regarding the bid: bid proposal form.

If your construction company costs $2,500,000 per year to run, and you are estimated to do $50,000,000 that year in work, the minimum bid markup you would expect to add to the bid would be ($2,500,000 / $50,000,000) x 100% to calculate the percentage. This equates to 5% bid markup.

True or False? A contractor is paid the bid price no matter what on a Unit-Price Bid. This statement is false. A Unit-Price Bid means the contractor is paid for the actual quantity of work completed, as unit prices can fluctuate due to varying project conditions.