Financial Management in Construction Projects, Exams of Electrical Engineering

Download Financial Management in Construction Projects and more Exams Electrical Engineering in PDF only on Docsity! NICET 3 FIRE ALARM COMPLETE EXAM PASSED SOLUTION The beginning of every design project starts with the customer specification included in the - Request For Proposal or RFP. Reading and interpreting the ____________ is a major factor in a good bid proposal and system design. - Specification If you take the safer approach, and add safety factors into your bid to account for things you may have missed in the specification, you probably will ______________ - not be the low or successful bidder. Accounts Payables - debts that the company owes and expects to pay within one year that are not evidenced by a written promise to pay. Accounts Receivable - invoices owed to the company that will likely be paid within one year and have not been formalized by a written promise to pay, such as a note receivable. Assets - resources held by the company that will probably lead to some future cash inflows. For example, a piece of property is an asset because it could be sold to produce a cash inflow. Balance Sheet - The balance sheet is a snapshot of a company's financial assets, liabilities, and the value of the company to its owner at a specific point in time (often referred to as net worth, or equity). Balance Sheets are prepared how often? - At the end of each month and at the end of the year Cash - demand deposits (such as savings and checking accounts), time deposits (such as certificates of deposits) with a maturity of one year or less, and petty cash. Committed Costs - those costs that the company has committed to pay and can be identified before a bill is received for the costs. Cost Control - occurs when the accounting system provides management with the accounting data in time for management to analyze the data and make corrections in a timely manner.. Cost Reporting - occurs when the accounting system provides management with the accounting data after the opportunity has passed for management to respond and correct the problems indicated by the data. Direct Costs - the labor and material to complete a project. Fixed Assets - land, buildings, construction equipment, trucks and autos, and office equipment. Fixed Costs - costs that tend to be fixed over a specific range of revenues. For example, if a company currently has two salaried employees working as estimators, the cost of these employees is fixed over the volume of work that can be won by these employees. Rent is normally a fixed cost if the size of the office does not vary based on workload. General Overhead - costs that cannot be specifically identified to the completion of a construction project. includes all main office and supervisory costs that cannot be billed to a specific construction project. Another term for General Overhead - indirect costs Gross Profit Margin - the gross profit divided by the total revenue times 100%. Inventory - materials that are available for sale, or are available and expected to be incorporated into a construction project within the next year. You notice on your paycheck that they paid you for 1 day of your unpaid vacation. Even though you took a day off without pay you ended up working 12 hours of comp or unpaid time anyway. What do you do? - .Tell the supervisor a mistake was made immediately You are checking on an installation of a fire alarm system in a new facility. You notice the terminations and wire routing in the FACP look messy. What should you do? - Make the employee fix it now You want a mentor for your new employee. Your people all have pros and cons for being selected as a mentor. Which of the following people would you select based on their pro and con? A. Hard worker - average knowledge B. Best personality - least amount of knowledge C. Leadership skills - average knowledge D. Bad personality - high level of knowledge - D. Bad personality - high level of knowledge The correct answer is: You want the person with the highest level of knowledge. You also want the new worker to get along with others whether they have good or bad personalities. This might improve the attitude of the person selected as the mentor, since their skills are appreciated. Two employees are joking about their futures. The male employee tells the female employee that she should marry a rich man. They both laugh heavily afterwards. You overhear it from your desk. What should you do? - Go over and tell them in front of the others the comments are inappropriate You are cleaning the area where employees store their personal belongings while they are out working at customers' sites. You find a bag of white powder that you suspect is cocaine. What should you do? - Call the police to investigate The laptop shared by the technicians has been missing for a week. Last week a new employee started, and you suspect that he has stolen it. What should you do? - Call a meeting with your employees and ask if anyone has seen the laptop You notice that one of your employees smells of alcohol after lunch. What should you do? - D. Call a taxi to take them home The correct answer is: You need to call a taxi to take them home. You cannot risk the safety of the employee and others. There should be a _________ harassment policy in the workplace. - Zero-tolerance Define: Willful neglect - intentional failure to perform duties because of negligence. True or False: You can require any employees to take a drug test prior to being hired as a condition of employment. - True If the employee is unproductive due to taking too many breaks or wasting time, you need to - discuss the issue one-on-one with the employee and document the discussion. It may become necessary to terminate the employee, so documentation is very important if that time comes. Match the three priorities of major companies on the left with their order of importance on the right according to their philosophy. Quality. First Cost or. Second Profit Safety. Third Third - Safety. First Quality. Second Cost or Profit. Third As an experienced technician you are expected to be able to do the following: (Select all that apply) Bookkeeper Trainer Designer Safety direct - Trainer Designer Safety director Article _________ of AIA A201 defines the project's completion in contractual terms. - 9 Article _________ of AIA A201 assigns responsibility for the protection of persons and property, as well as safety programs and responsibilities governing hazardous - 10 Article _________ of AIA A201 deals with loss and insurance required to make the owner "whole" (or fully reimbursed by the contractor's insurance carrier). - 11 Article _________ of AIA A201 assigns responsibility for the correction of defective and nonconforming work. - 12 Articles _________ of AIA A201 Explains the legal provisions for the assignment of rights or termination of the contract by either signatory party. - 13 and 14 Article _________ of AIA A201 covers the owner's right to contract separately with other independent contractors to perform work concurrently with the prime contractor. - 6 Article _________ of AIA A201 Introduces an Initial Decision Maker (IDM), allowing for claims to initially be decided by someone other than the architect. This article also defines the requirements for arbitration, if chosen for dispute resolution. - 15 Which article of A1A A201 Defines procedures for handling changes to the work, including when there is disagreement. - Article 7 Which article of A1A A201 Explains time and its impact on the schedule, and defines the remedies for delay, as well as the procedure for requesting an extension of time. - Article 8 Which sub group of fire detection in the CSI master format covers Fire Detection and Alarm Interfaces - 28 31 33 Which sub group of fire detection in the CSI master format covers Fire Detection and Alarm Interfaces to Intrusion Detection - 28 31 33.26 Which sub group of fire detection in the CSI master format covers Fire Detection and Alarm Interfaces to Video Surveillance - 28 31 33.33 Which sub group of fire detection in the CSI master format covers Fire Detection and Alarm Interfaces to Elevator Control - 28 31 33.43 Which sub group of fire detection in the CSI master format covers Smoke Detection Sensors - 28 31 46 Which sub group of fire detection in the CSI master format covers Carbon- Monoxide Detection Sensors - 28 31 49 Which sub group of fire detection in the CSI master format covers Fire Alarm Initiating Devices - 28 31 53 Which sub group of fire detection in the CSI master format covers Fire Alarm Pull Stations - 28 31 53.13 Which sub group of fire detection in the CSI master format covers Digital, Addressable Fire-Alarm Systems - 28 31 11 Which sub group of fire detection in the CSI master format covers Zoned (DC Loop) Fire-Alarm Systems - 28 31 12 Which sub group of fire detection in the CSI master format covers Fire Detection and Alarm Control, GUI, and Logic Systems - 28 31 13 Which sub group of fire detection in the CSI master format Fire Detection and Alarm Annunciation Panels and Fire Stations - 28 31 23 Technical Specifications define the ___________, __________, and ___________ of the work. - scope, products, execution The technical sections of the CSI masterformat 2016 provide the following information: - 1 Administrative requirements 2 Referenced standards and codes 3 Product specifications 4 Installation procedures 5 Workmanship requirements This type of specification spells out a product by name and model number. - Proprietary Specifications _____________ ____________ have the unique advantage of allowing designers or owners to select a product they desire or have used successfully on ___________ ____________. - Proprietary specifications. prior projects. To help reduce the exclusivity of the proprietary spec, the designer sometimes adds phrasing called the "_________ ____________" clause, which allows limited _________________.. - Or equal. Competition ____________ ____________ is a method of specifying products and materials and is based less on makes and models and more on the ability to satisfy a ____________ _____________or perform a specific _______________.. - Performance Specification. design requirement. function After____________ has been added, the result is the full value of the labor hour, referred to as the________ __________. This is the rate that would be charged for labor in a time and material application. - profit billing rate labor costs are not just the hourly rate for each worker. There are also many costs added on to the labor cost: - 1 Worker's Compensation Insurance 2 Social Security 3 State and Federal Unemployment insurance (SUTA and FUTA) 4 Company health or other benefits 5 General liability insurance for damages caused by the workers _____________ ____________ is sometimes required on public works projects and is normally set by the state as the minimum wage required for the employees working on that project. - Prevailing wage Indirect Overhead - Costs related to the operation of the main office and its staff Indirect overhead costs are tracked__________ or ____________ and adjusted as dictated by the____________ ___________ of the company. - Weekly Biweekly financial health Indirect overhead includes, but is not limited to, expenses such as: - 1 Corporate officers' salaries and benefits. 2 Rent or mortgage for the main office. 3 Monthly telephone, cell phones, fax, internet charges, salaries and benefits, insurance, and taxes, vehicles, etc. 4 Legal, accounting, and technology service fees outside the firm. 5 Utilities for the main office/workplace. While profit is not specifically a cost, it does need to be captured in the calculation of the: - billing rate. Profit is most often assigned as a______________ of all costs of the work. - Percentage The following are examples of indirect overhead: (Select all that apply) Rent or mortgage for the main office. Legal service fees outside of the firm. General liability insurance for damages caused by workers. Corporate officers' salaries and benefits. Utilities for the main office/workplace. - Rent or mortgage for the main office. Legal service fees outside of the firm. Corporate officers' salaries and benefits. Utilities for the main office/workplace. True or false: Profit is most often assigned as a percentage of all costs of the work. - True When doing a labor estimate, there are some other factors to consider: - 1 What is the crew size? Certain tasks, even though they are not large, require two people to perform the task. 2 What is the travel time to the job site? 3 What is the environment (cold, hot, wet, hazardous)? 4 Productivity factor - Eight hours of pay is normally not eight hours of working time when you consider setup and cleanup each day. Guarantees contractor will pay for labor and materials. - Labor and Materials Bond Submitted with the bid and guarantees the contractor can bond the project. - Bid bond Guarantees compliance with statutes and ordinances. - License or Permit Bond Lien Bond - Protects the owner against liens. Guarantees that the contractor will perform all the work in accordance with the contract documents. - Performance Bond Labor and materials bond provided by the subcontractor to the general contractor, that reduces the general contractor's risk and preserves the general contractor's bonding capacity. - Subcontractor Bonds The ____________, or cover letter, should do more than simply transmit your proposal documents to the _____________ or private-sector client. The letter should be viewed as one more opportunity to call your client's attention to the advantages to be gained from doing business with _______ ____________. - transmittal. Government. your company The RFP cover letter should be prepared on your company's letterhead with the appropriate _________ location address, and it should be signed by your company's ____________ or _________ ________ ____________. - office. president or executive vice president There may be items in the proposal that you take exception to or are __________ upon the award date of the bid. If you agreed to this timetable, you would be legally responsible for __________ _____ _______. Sometimes the timetable is contingent on the contract being awarded by a specified date. - contingent. meeting the date. There will likely be a section in the proposal where you acknowledge you have studied all bidding documents. You may want to list the documents along with the ______ or ____________ _________ on each document. - date or revision number There will be a section of items that you acknowledge you have performed or reviewed in preparing the bid, and terms you are in agreement: list them - 1 A site visit was made. 2 You are familiar with all local, state and federal laws. 3 The bidder has given notice in writing of all conflicts, errors, and discrepancies found on the drawing or specifications. 4 You are authorized to do business in the state. 5 There have been no unethical practices in preparing the bid. When bidding You will provide the pricing for the bid in the format requested in the _______ (lump sum, cost-plus, unit price). You will agree or ________ ____________ to the timetable of the project. You will normally have to agree to _________ __________ if the work is not completed on time - RFP. Take exception. liquidate damages You will provide attachments to the proposal that may include: 1 ______________ Documents. 2 List of proposed ______________. 3 List of proposed ____________. 4 List of project _____________. 5 Bidder ____________ statement. - Bonding. subcontractors. suppliers. references. references. Which of the following would not be included in the balance sheet of a company? A. Financial assets B. Number of employees C. Liabilities D. Property - B. Number of employees An engineer or designer working for a company would normally be considered a _ cost. A. Mixed Cost B. Fixed Cost C. Variable Cost D. Dedicated Cost - B. Fixed Cost. The correct answer is: Fixed cost. Reference course content. True or false: Gross profit for a construction company is equal to revenue minus taxes. - False Which of the following serves as a basis for bidding and performing the work? A. Specifications.. B.. Contract. C. Drawings. D. Building codes. - A. Specifications.. C. Weather. - The correct answer is: All of the above responses could be a cost factor. If the travel time to the job is considerable, it could affect labor time and fuel costs. Other projects in progress might require you to pay premium overtime pay. In some parts of the country, weather can significantly affect project schedules. You might consider a premium cost on the project if there are doubts about the ability to pay. What type of bond ensures that the contractor will perform the work per all terms in the contract? A. Performance bond B. Permit bond C. Bid bond D. Lien bond - The correct answer is: Performance bond. Reference course content. The hardest item to estimate on an installation project is normally A. Material B. Rental Equipment C. Labor D. Subcontractor costs - The correct answer is: Labor. Labor is the most difficult to estimate. Subcontractor costs can be a problem, but you might have the opportunity to get a written bid from a subcontractor prior to submitting your bid. Which of the following would you want to provide on a contractor qualification statement? (Select all that apply) A. Any previous names of the company B. The fact the company filed for bankruptcy ten years ago C. Any required license numbers D. Names of the design team - The correct answers are: (1) Any previous names of the company, (2) the fact the company filed for bankruptcy ten years ago, and (3) any required license numbers. If you have several designers, you may not want to place names on the statement in the event the people you plan to assign to the project change. The project phase where profit is made or lost is the phase. A. Estimating B. Material purchasing C. Installation D. Debug and startup - The correct answer is: Estimating. All potential problems should be factored into the cost estimate. Changes due to omissions and assumptions on the estimate are the biggest cause of profit loss. The customer specification states that they want additional speakers beyond those required by code with the number to be determined at a later date. How should you address this in the quotation? A. An addendum B. An allowance C. An alternate D. Do not attempt to address it - The correct answer is: An allowance. The best method may be to quote an allowance of "x" number of additional speakers at a cost of "y". Reference course content. The customer has specified specific fire alarm system equipment that is not commonly used and is expensive. This will require some training for your designers and installers. You could complete the project at a lower cost with better equipment. What should you put in your estimate? A. Bid the job as the customer requested only B. Take exception to the equipment and quote your standard equipment C. Quote your recommendation as an alternate price - The correct answer is: Quote your recommendation as an alternate price. The customer could have been convinced by a sales person that this equipment was the lowest cost, and might reconsider, based on your alternate cost. Reference course content. What part of the bid documents would best demonstrate the bidder's ability to successfully complete the project? A. Proposal statement B. Contractor statement C. Qualification statement D. Financial Statement - The correct answer is: The qualification statement. Reference course content. You are quoting a project for a major corporation that you have installed alarm systems in three identical buildings in the past five years. When using the other projects as the major basis for the estimate, what is the most likely factor that might be overlooked? A. Competitor's lower bids B. Fuel cost increases C. Material cost increases D. Change in specifications - The correct answer is: Material costs for estimating purposes need to be looked at whenever quoting a project using past cost data as the basis. Costs of steel and copper can dramatically increase project costs. Reference course content. __________ is (are) subtracted from the gross profit margin to obtain the net profit margin. A. Cost margin B. Taxes C. Overhead margin D. Material and Labor margin Next - The correct answer is: Taxes. Reference course content.