Deck 8: Pricing Generally

Question 1

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

Answer 1

True

Question 2

Materials are usually quoted including taxes.

Answer 2

False

Question 3

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

Answer 3

False

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

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

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

Question 7

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

Question 9

The contractor has little or no influence over job factors.

Question 10

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

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

Question 12

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

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.

Question 14

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

Question 15

In general, all subtrades offer lump-sum bids.

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

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.

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

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.

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.