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25 Cards in this Set
- Front
- Back
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In a competitive bid situation, a bid package is often put together that includes...
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An invitation to bid- that gives a brief overview of the project, deadlines, and requirements.
Bid instructions- that contain specific of how the bid should completed and submitted Bid forms- including bid sheet, schedule, bidder's questionnaire on experience, financial responsibilities. Supplements- including items important to the overall bid process |
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Bid Shopping is...
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when a general contractor approaches subcontractors other then those who have submitted bids to seek a lower offer then what was quoted in original bids
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Bid Peddling is...
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when the subcontractor approaches the general contractor after the project was awarded with the intent of lowering the original price submitted on the bid day.
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Bid Rigging is
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a form of collusion where contractors coordinate their bids to fix the award outcome of a project.
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Project Documents include the following
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-Construction or architectural drawings
-Specifications are details that determine the type of materials or methods to be used in construction -The contract -Bonds |
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Estimate Cost
Quantity Take-off Method |
Individual estimate units of materials and labor for each take you listed in your estimating framework
Then add in- -Contractor fees -Labor burden -Project overhead cost -Project equipment -Contingencies -Allowances -Company overhead -Profit |
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Determine Labor Cost Formula
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Required labor hours per task X Labor Rate = Labor Cost per Task
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Determine Project Equipment Costs
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Equipment needed to complete the job is figured as a direct cost of the project and added to your estimate.
Owned equipment- to calculate the unit cost consider -Actual cost of the equipment -Maintenance and operating cost -Taxes and fees -Labor to operate -Insurance Rental Equipment- consider -Rental rate -Labor cost to pick up and return -Labor cost to operate |
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Project Overhead cost are...
Name examples |
items that are necessary to complete the project but are not directly associated with labor and material
bonds, temporarily storage, temporary office, security guard, utilities, dumpsters, portable toilets |
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Project overhead costs __% to __% of the total bid
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5% to 10%
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Formula to find your Poject Overhead percentage
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Project overhead cost from previous year / revenues = overhead percentage
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Company Overhead is
Name exmples |
the cost id doing business. These expenses are necessary to keep the operations running.
Office rent, accounting fees, taxes, phones, legal fees, administrative labor |
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Company overhead costs ___% to ___% of the total bid
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5% to 20%
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Formula to find your Company Overhead percentage
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company overhead cost from previous year / revenues = overhead percentage
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Markup and profit margin. Standard industry markup is ___%
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15%
But consider the market and competition. |
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Conceptual estimate is
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generally prepared by the architect using cost models from previous projects.
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Square-foot method of estimating is
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a calculation of square footage of the project multiplied by a unit cost
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Unit price method of estimating..
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bundles all of the cost factors such as labor, materials, equipment, and subcontractors to come up with a unit price.
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Inaccurate estimates occur when...
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you mak erroes and omissions in your estimate.
Check for Mathematical errors Omissions in labor or materials non-standard abbreviations- may be interpreted as different measurement or material units of measure- define measurement accurately |
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Job Cost Recording System provides may benefits..
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-Current projects are monitored more closely with a cost tracking system. Cost overruns are identified and corrective action is taken.
-Information helps future estimates - Data can help you make more strategic decisions. |
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There are many ways to set up a job cost recording system, but to ensure ___________, it must remain _________for all ________________
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accuracy consistent projects
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A Cost Code System includes
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-Project number
-Activity Classification Code, using different codes to ID different type of jobs -Distribution Code , using code for labor, materials, equipment |
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It is important that ___________ fill out ___________ completely and with enough detail so that you accurately record __________ cost.
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employees time cards labor
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Computer programs can stream line the estimating process. Some benefits are....
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-shorter time to prepare the estimate
- improved accuracy -Professional presentation to the customer |
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Common features for computer porgrams
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-databases for unit cost items
-multiple estimate report formats to present to the customer -tracking method for historical information -ability to recall and modify past projects -job costing capabilities |
