Construction Bidding and Estimating: Key Terms and Definitions, Quizzes of Civil Engineering

Download Construction Bidding and Estimating: Key Terms and Definitions and more Quizzes Civil Engineering in PDF only on Docsity! TERM 1 Decision to bid DEFINITION 1 Depends on the bidding climateEsimating expense .2 - .5% of total bid amount TERM 2 What is a set aside? DEFINITION 2 Public projects set aside for small, minority-owned, locally- owned, or disadvantaged businesses. TERM 3 Small Business Administration DEFINITION 3 The Small Business Administration is a United States government agency that provides support to entrepreneurs and small businesses. TERM 4 Disadvantaged Business Enterprise (DBE) DEFINITION 4 companies must be owned and controlled by a minority or a woman TERM 5 What is bidder qualification based on? DEFINITION 5 Experience, competence, and financial criteria TERM 6 What is a prequalification certificate? DEFINITION 6 Limits a contractor to a certain type of work TERM 7 Refundable deposit DEFINITION 7 guarantees the safe return of each set of documents TERM 8 Non-refundable deposit DEFINITION 8 to help A-E offset portion of printing costs TERM 9 Availibility of plans/specs DEFINITION 9 sufficient plans should be available to bidding community to produce the best competitive prices TERM 10 Sufficient bidding period (Benefits to owner) DEFINITION 10 Bigger profits Best prices less guesswork TERM 21 Substitute materials DEFINITION 21 Substitute product and indicates difference in price to the owner TERM 22 Allowance DEFINITION 22 Designated allowance amount is used to prepare a proposal TERM 23 Free on board (FOB) DEFINITION 23 a material vendor is responsible for presenting goods free on board at some mutually agreed upon point TERM 24 Cost insurance freight (CIS) DEFINITION 24 quoted prices include item cost plus shipment cost to include freight and insurance expenses to FOB location TERM 25 Direct labor cost DEFINITION 25 Function between basic wage rates, quantity of work, and production rates TERM 26 Indirect labor cost DEFINITION 26 Expenses that are additional to basic rates paid by employer payroll taxes insurance employee fringe benefits can add 25-50% to direct payroll cost TERM 27 Fringe benefits DEFINITION 27 Pension plans, health insurance, vacation, apprenticeship programs TERM 28 Equipment DEFINITION 28 items being used to accomplish the physical work TERM 29 Equipment cost DEFINITION 29 lump-sum allowances cost of small hand tools and minor equipment Contractors should decide whether to purchase or lease TERM 30 Equipment operators (labor or equipment cost?) DEFINITION 30 Labor TERM 31 Lump-sum equipment cost DEFINITION 31 Purchase new equipment for project and then sell it at the end TERM 32 Equipment expense DEFINITION 32 Purchase price (minus) estimated salvage valueProduction and support equipment TERM 33 Ownership costs DEFINITION 33 fixed costsTake place during the period the owner owns the equipment financing cost insurance tax depreciation TERM 34 Operating costs DEFINITION 34 Variable costsOnly occur during machine operation fuel oil repair tire replacement TERM 35 Production equipment DEFINITION 35 units that alone or combined lead to an end product shovels back hoes loaders bull dozers TERM 46 Markup figures DEFINITION 46 Probability of being the low biddertype of project TERM 47 disclaimers DEFINITION 47 owner and A-E not responsible for accuracy of information on subsurface conditionscontractor must assume full responsibility for all unknown conditions found on site TERM 48 Bidding amounts (too high or low) DEFINITION 48 too high- contractor makes a greater profit but runs the risk of not being the lowest biddertoo low- contractor loses money but increases chances of being lowest bidder TERM 49 what is the expected profit formula? DEFINITION 49 (Probability(Bidding amount - Actual cost of work))(P(B-C)) TERM 50 What is the purpose of the lump-sum recap sheet? DEFINITION 50 to compile many separate prices prepared by detailed cost estimates to generate a bidding amount TERM 51 Addenda DEFINITION 51 An addendum, in general, is an addition required to be made to a document by its author subsequent to its printing or publication. TERM 52 Proposal DEFINITION 52 written offer, by the contractor to the owner, stipulating price agreed to perform workpromise that the bidder will enter into contract with the owner for the amount specified TERM 53 Open bidding DEFINITION 53 proposal is included with the contract document TERM 54 Closed bidding DEFINITION 54 contractor chooses wording and content of proposal TERM 55 List of subcontractors DEFINITION 55 Submitted list of subs whose bids were used in preparation of the proposalfavored by subcontractors TERM 56 Purpose of list of subs DEFINITION 56 Owner can control the quantity of subsunethical bid practices can be minimized TERM 57 Unbalanced bid DEFINITION 57 Only used on unit price bid projects to quote inflated prices for the items occurring at early stages of the project to quote reduced prices for latter items total bid costs remain unchanged TERM 58 Owner-designed alternates DEFINITION 58 two or more alternative ways solicited for proposalscommon procedure: request for cost of additions or deductions to base structure Why?: Owners receive bid w/i budget owners make best selection of materials and methods TERM 59 Bid security DEFINITION 59 a guarantee that the successful bidder will inter into a contract with the owner for the amount specifiedFormat: bid bond TERM 60 Bid triangle DEFINITION 60 Surety: party to offset the damage (3rd party) Principal: party who might default (contractor) Obligee: party who might be damaged (owner)