CHAPTER 12 CEM 100 (EXCLUDING
VIDEO PRESENTATION) EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
What types of errors can occur in the bidding procedure? - ANS Errors can occur in math,
take off, judgment, morals, and special circumstances.
What should a contractor do if they discover an error in a submitted bid? - ANS They may
notify the owner or primary contractor to change or withdraw the bid.
How can a bidder minimize mistakes in their bids? - ANS By establishing office procedures
that ensure bids are checked by at least one person other than the estimator or owner.
What is required for a bid to be considered responsive? - ANS All bidding documents must be
completed and in place according to the instructions to bidder manual.
What should a contractor do when estimating time for project extensions? - ANS They should
analyze the numbers and not blindly accept computer results to avoid unforeseen costs.
How can contractors avoid errors due to lack of knowledge of work? - ANS By developing
step-by-step checklists and subcontracting elements outside their expertise.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is crucial to review before writing a bid and signing a contract? - ANS The general and
special conditions of the contract, not just the technical specifications.
What is an escalation clause and why is it important? - ANS It protects the firm against losing
profit from misjudging cost escalations over time.
What is a transposition error in estimates? - ANS It occurs when digits are switched when
recording amounts.
How can transposition errors be avoided? - ANS By carefully rechecking figures after entering
them.
What are take-offs in construction bidding? - ANS Estimates of materials needed for a
construction project, which determine the amount of materials and labor required.
What types of errors are classified as material errors? - ANS Errors in math and take-off that
may be excused if challenged.
What are special circumstances in the context of estimating mistakes? - ANS Excusable errors
due to sickness, management changes, or supplier changes outside the bidder's control.
What is the consequence of misjudging escalation in costs? - ANS It can lead to a decrease in
profit due to unforeseen costs.
What is the importance of careful analysis in bidding? - ANS It helps to avoid blindly
accepting computer results and ensures accurate estimates.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What should be done if there is a gap in experience for a contractor? - ANS They should
subcontract elements outside of their expertise.
What can lead to errors in judgment and morals in bidding? - ANS Misjudging costs and
failing to incorporate protective measures like escalation clauses.
Why is monitoring project costs important in construction? - ANS It helps keep construction
costs within the established project budget and aids in future cost estimation.
What two main applications are derived from project cost information? - ANS 1. Developing
labor and equipment production and cost data for future estimates. 2. Assisting in maintaining
ongoing project costs within budget.
What is the role of a contractor's project cost management system? - ANS To retrieve project
costs, monitor expenses, and compare them to budgeted amounts throughout the construction
process.
What actions can management take if project costs exceed the budget? - ANS Management
can take corrective action to try to complete all project activities within the budget.
What is the significance of a cost accounting and control system in construction? - ANS It is
vital for managing construction projects and ensuring the profitable operation of a construction
company.
What does project cost control begin with? - ANS The preparation of the original cost
estimate for a project.
What is created after a contractor's proposal is accepted? - ANS A project budget based on
the activities and costs determined in the estimate.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
VIDEO PRESENTATION) EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
What types of errors can occur in the bidding procedure? - ANS Errors can occur in math,
take off, judgment, morals, and special circumstances.
What should a contractor do if they discover an error in a submitted bid? - ANS They may
notify the owner or primary contractor to change or withdraw the bid.
How can a bidder minimize mistakes in their bids? - ANS By establishing office procedures
that ensure bids are checked by at least one person other than the estimator or owner.
What is required for a bid to be considered responsive? - ANS All bidding documents must be
completed and in place according to the instructions to bidder manual.
What should a contractor do when estimating time for project extensions? - ANS They should
analyze the numbers and not blindly accept computer results to avoid unforeseen costs.
How can contractors avoid errors due to lack of knowledge of work? - ANS By developing
step-by-step checklists and subcontracting elements outside their expertise.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is crucial to review before writing a bid and signing a contract? - ANS The general and
special conditions of the contract, not just the technical specifications.
What is an escalation clause and why is it important? - ANS It protects the firm against losing
profit from misjudging cost escalations over time.
What is a transposition error in estimates? - ANS It occurs when digits are switched when
recording amounts.
How can transposition errors be avoided? - ANS By carefully rechecking figures after entering
them.
What are take-offs in construction bidding? - ANS Estimates of materials needed for a
construction project, which determine the amount of materials and labor required.
What types of errors are classified as material errors? - ANS Errors in math and take-off that
may be excused if challenged.
What are special circumstances in the context of estimating mistakes? - ANS Excusable errors
due to sickness, management changes, or supplier changes outside the bidder's control.
What is the consequence of misjudging escalation in costs? - ANS It can lead to a decrease in
profit due to unforeseen costs.
What is the importance of careful analysis in bidding? - ANS It helps to avoid blindly
accepting computer results and ensures accurate estimates.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What should be done if there is a gap in experience for a contractor? - ANS They should
subcontract elements outside of their expertise.
What can lead to errors in judgment and morals in bidding? - ANS Misjudging costs and
failing to incorporate protective measures like escalation clauses.
Why is monitoring project costs important in construction? - ANS It helps keep construction
costs within the established project budget and aids in future cost estimation.
What two main applications are derived from project cost information? - ANS 1. Developing
labor and equipment production and cost data for future estimates. 2. Assisting in maintaining
ongoing project costs within budget.
What is the role of a contractor's project cost management system? - ANS To retrieve project
costs, monitor expenses, and compare them to budgeted amounts throughout the construction
process.
What actions can management take if project costs exceed the budget? - ANS Management
can take corrective action to try to complete all project activities within the budget.
What is the significance of a cost accounting and control system in construction? - ANS It is
vital for managing construction projects and ensuring the profitable operation of a construction
company.
What does project cost control begin with? - ANS The preparation of the original cost
estimate for a project.
What is created after a contractor's proposal is accepted? - ANS A project budget based on
the activities and costs determined in the estimate.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
