CM Notes Flashcards
(135 cards)
1
Q
What are the Seven aspects of a Vertical Cost Breakdown?
IBID-CM-E
A
- Indirect Costs
- Bonds
- Interest
- Direct Costs
- Contingency
- Markup
- Escalation
2
Q
List 2 methods of pricing out direct cost estimates
A
- Crew Method
- Individual Method
3
Q
Define Swing Shift
A
the work shift between the day and the night shifts, commonly from 4:00 PM to midnight
4
Q
3 Types of Estimate for an Owner
A
- Conceptual Estimate
- Alternative Design Estimate
- Owner’s Engineer Estimate
5
Q
3 Types of estimate for a contractor
A
- Contractor’s bid estimate
- alternative methods
- claims / change orders
6
Q
Two different breakdowns of cost:
A
Horizontal and Vertical
7
Q
Horizontal: 7 Categories
PEE-RSLL
A
- Permanent Materials
- Expendable Materials
- Equipment Operations
- Rentals
- Sub Contractors
- Labour
- Labour Service
8
Q
Vertical: 7 Categories
IBIDCM-E
A
- Indirect Costs
- Bonds
- Interest
- Direct Costs
- Contingency
- Markup
- Escalation
9
Q
List 3 types of mark-up
A
Home office, Profit, and Risk
10
Q
List The 4 Types of EOE
A
Equipment Operating Expense
- FOG: Fuel Oil Grease
- Small Repair Parts
- Tires
- 3rd Party Overhaul
11
Q
List the 5 Types of Indirect Costs
A
- Salaries / Payroll
- Time-related O/H expense
- Non-time related expense
- Insurance + taxes
- Construction Plant in + out
12
Q
Contingency
A
Safety net accounting for risks
13
Q
2 Types of Contingency
A
Identified & Unidentified
14
Q
3 Categories of Unidentified Contingency
A
- Soft Subs
- Construction Hedge
- Special Events (i.e. strike)
15
Q
What is an unidentified contingency?
A
A little bit of padding thrown into your estimate for small, unanticipated events.
16
Q
List the 2 categories of risk.
A
Quantifiable & Unquantifiable risk
17
Q
2 Types of Network Diagrams
A
AoA - Activity on Arrow
AoN - Activity on Node
18
Q
What is a schedule?
A
A schedule is a logical representation of logical relationships / sequences of tasks or activities.
19
Q
IPA
A
Immediately Preceding Activity
20
Q
Dummy Relationship
A
Logical relationship with no time associated
21
Q
(CP) Critical Path
A
The longest path through the network.
Activities with zero float are considered critical path tasks.
22
Q
Critical Activity
A
Any activity on the critical path
- CA’s have zero float
- if a CA is delayed, the entire duration is delayed by the same time
23
Q
Float
A
The difference between the available time to complete an activity and the required time.
a. non-critical activities have float
b. critical activities have no float
24
Q
4 Types of Logical Relationships
A
Start-Start
Start-Finish
Finish-Finish
Finish-Start
The default is Finish-Start relationship
25
CPM
Critical Path Method
ES ID EF
DUR
LS LF
26
Why would an Owner shorten a schedule?
Why would a Contractor shorten a schedule?
Owner: To complete project sooner and start generating revenue
Contractor: To finish the job and start the next one
27
Direct Cost
Any cost associated with the PHYSICAL CONSTRUCTION of a DISCRETE part of the construction (ie concrete workers)
28
Indirect Cost
Any cost that is NOT associated with physical construction of a discrete part of the construction (i.e. supervisor)
29
If you shorten a project, Direct Cost will _____ and Indirect Cost will _______.
Direct Cost will INCREASE & Indirect Cost will DECREASE
30
To shorten a schedule:
- Must be shorter than critical path
- Must be aware that as CP is shortened, may create new CP's
- Comes down to shortening duration of Critical Activity
31
A single Critical Activity has 2 limits that need to be considered
Physical Limit & Logical Limit
32
Physical Limit of a Critical Activity
Maximum time that an activity can be reduced in duration.
33
Logical Limit of a Critical Activity
of days (time units) an activity can be reduced before creating an additional Critical Path
34
When crashing a schedule, crash to the _____ of physical limit and logical limit.
LESSER
35
Before scheduling, you must ____
PLAN
36
WBS
Work Breakdown Structure
The progressive hierarchical breakdown of a project into smaller components to the lowest practical level to which costs can be applied.
37
equation for PLANNING
Planning = Work Breakdown + Work Sequencing
38
Contract documents will lay out the ______ of work
SCOPE
39
equation for PROJECT
Project = Sum of Sub elements OR work packages
the Sum of work packages can be shown in a hierarchical format called a WBS (Work Breakdown Structure)
40
Float / Slack
If there is more time to complete an activity than required, that activity is said to have float or slack.
41
Free Float
The maximum delay in the ES (Early Start) of an activity without affecting the ES of any IFA (immediately following activity)
42
Interfering float (IF)
The reduction in the float of an activity if the IPA is delayed by its TF
43
Formula for TF (Total Float)
TF = FF + IF
Total Float = Free Float + Interfering Float
also:
TF = LS-ES or LF-EF
ES or EF from the SUCCEEDING activity.
ex: TF-b = LS,b - ES,c
44
Beginning-To-End Planning
Begin with mobilization and proceed step by step through the project to completion.
Although intuitive, this method has some drawbacks.
Some projects are so complex that it is difficult to visualize the best way to sequence it.
45
Top-Down Planning & WBS
- Preferred by Industry
Start with an overall view of the project and then break it into its major components, then break down the major components into more detail.
46
3 Common Methods of Bid Markup Determination
1. % of Total Cost
2. % of Labour
3. % Broad-based method
47
Horizontal Format of Cost Expression
L + PM + EM + S + EOE + RL + R = Total
Labour (L)
Permanent Materials (PM)
Expendable Materials (EM)
Subtracts (S)
Equipment Operating Expense (EOE)
Repair and Service Labor (RL)
Rental (R)
48
Estimation Risk
Labour (L & RL): Highest Risk
- Expendable Materials (EM)
- Equipment (EOE, R) Subcontracts (S),
Permanent Materials (PM): Low Risk
49
AOA - Activity on Arrow
A graphical representation of a schedule showing tasks or activities as arrows connected by nodes that allows for overlapping construction activities
50
AON - Activity On Node
A graphical representation of a schedule showing tasks or activities as nodes connected by arrows that allows for overlapping construction activities
51
Network Diagram
1) A representation of logical relationships
2) A sequence of activities or tasks
52
IPA - Immediately Preceding Activity
The activity or task that must occur prior to the commencement of a task or activity
53
SS - Sequence Steps
The steps of tasks or activities in a network diagram
54
CP - Critical Path
Continuous sequence of connected activities that form the longest duration/path through the network
55
CA - Critical Activity
An activity within the critical path that if delayed, would extend the entire project. Critical activities have zero float.
56
ES - Early Start
The earliest start of a task
57
EF - Early Finish
The earliest completion date of a task
58
LF - Late Finish
The latest completion of a task without impacting the schedule
59
LS - Late Start
The latest a task can start without impacting the schedule
60
Float / Slack
1) The difference between available time and required time to complete an activity
2) The number of time units an activity can be extended without a late finish
3) More available time than required to complete an activity (Called Slack by MS Project)
61
SS
Start-Start
62
SF
Start-Finish
63
FF
Finish-Finish
64
FS
Finish-Start
65
Total Float
The maximum time units an activity can be delayed without impacting the schedule
66
Free Float
The maximum delay of the early start (ES) without impacting a following activities early start (ES)
67
Interfering Float
Reduction of float for an activity if the IPA is delayed by it's total float
68
Lags
Time lags between activities that are incorporated into the network diagram
69
Schedule Crashing
Schedule Acceleration aimed at completing a project sooner than planned
70
DC - Direct Cost
Any cost that can be associated with a discreet physical part of the project
71
IC - Indirect Cost
Any cost that can NOT be associated with a discreet physical part of the project
72
Physical Limit
The maximum time an activity or task can be reduced
73
Logical Limit
The number of days an activity can be reduced before creating a new critical path
74
NLP - Next Longest Path
Used for schedule crashing to find new critical paths
75
WBS - Work Breakdown Structure
The progressive hierarchical breakdown of the project into smaller pieces to the lowest practical level to which cost applies
76
WBP - Work Breakdown Package
The sum of work packages, also called a WBS
77
WBS Project Equation
Sum of subelements or work packages
78
IFA - Immediately Following Activity
The activity or task that occurs after the commencement of a task or activity
79
Beginning-to-end Planning
The step by step process from mobilization to project completion
80
L - Direct Labour
A cost type: High Risk
81
RL - Repair and Service Labour
A cost type: High Risk
82
PM - Permanent Material
A cost type: Low Risk - The material that falls within the neat lines of construction drawings on the project
83
EM - Expendable Material
A cost type: Medium-High Risk - The material that is required but falls outside the neat lines of construction drawings on the project / ALSO temporary Materials
84
EOE - Equipment Operating Expense
A cost type: Medium Risk
85
R - Rental, Depreciation, Write-Off
A cost type: Medium Risk - Includes In-House Rental, 3rd Party Rental, O&M (Operated and maintained). The first 2 types are not volatile, while O&M is
86
S - Subcontractors
A cost type: Low Risk (If bonded)
87
Escalation
A vertical breakdown term: Long term expected changes to specific costs over time
88
Interest
A vertical breakdown term: The cost of borrowing
89
Markup
A vertical breakdown term: General Risk, Administrative, and Profit
90
Contingency
A vertical breakdown term: A combination of identified and unidentified potential costs
91
Bonds
A vertical breakdown term: Cost of bonding along with other expenses such as fees
92
Productivity Hedge
An unidentified contingency - Expected volatility of labour performance
93
Soft Subcontractors
An unidentified contingency - A risk taken to use unbonded, but cheaper contractors
94
Special Event
An unidentified contingency - Such as a strike
95
Risk Coverage
An identified contingency - General risk allowance for the project
96
Profit
An identified contingency - Money generated for the company and/or shareholders
97
FOG - Fuel Oil Grease
A direct cost for EOE (Equipment Operating Expense)
98
Small Repair and Parts
A direct cost for EOE (Equipment Operating Expense)
99
Tires
A direct cost for EOE (Equipment Operating Expense)
100
3rd Party Overhaul
A direct cost for EOE (Equipment Operating Expense)
101
Payroll / Salary
An indirect cost for EOE (Equipment Operating Expense)
102
Time Related Expense
An indirect cost for EOE (Equipment Operating Expense)
103
Non-Time Related Expense
An indirect cost for EOE (Equipment Operating Expense)
104
Insurance and Taxes
An indirect cost for EOE (Equipment Operating Expense)
105
Construction Plant In & Out
An indirect cost for EOE (Equipment Operating Expense) - Trailering equipment, Loading, etc.
106
Lump Sum Bid
Contractor submits a single price using a format chosen by the contractor
107
Schedule of Bid Item
Contractor prepares a bid that conforms to the constraints of a bid form with prices per item
108
What must you do before scheduling?
Planning; Specifically creating a work breakdown and sequencing
109
What are the three types of consultant (municipality) estimates?
1) Conceptual
2) Alternate Design
3) Owner's Engineer
110
What are the three types of contractor estimates?
1) Bid Estimate
2) Alternate Methods
3) Claims / Change Orders
111
What is the purpose of a conceptual Estimate?
Ball Park for Owner
112
What is the purpose of an alternate design estimate?
Ball Park Options for Owner
113
What is the purpose of the Owner's Engineer Estimate?
Gives an idea to the owner of what type of bids to expect. Also to be used as a tool to evaluate bids.
114
What is contained in a Contractors Bid?
Costs and Profit
115
Fill below a concrete pad is an example of what type of cost category?
Expendable Material
116
Depreciation and Write-Off's are part of what expense category?
Rental (Surprise!)
117
To level resources manually, what aspect of an activity will govern it's priority starting order?
The one with the earliest late start will take precedence
118
Describe how to shorten a schedule
Schedule shortening (Also known as crashing) requires the current critical path to be shortened and potentially creating multiple critical paths.
119
What two limits are placed on shortening schedules?
The physical limit, and logical limit
120
What is the physical limit?
The maximum time an activity can be reduced
121
What is the logical limit?
The number of days an activity can be reduced before the creation of a new critical path
122
Why would a contractor crash a schedule?
To start another job sooner / the project is behind schedule and needs to get back on track
123
Why would an owner crash a schedule?
To complete the job sooner and/or generate revenue sooner.
124
What is the term for the maximum delay of the Early Start without impacting the the following activities Early Start?
Free Float
125
What is the term describing the maximum amount of time an activity can be delayed?
Total Float
126
What is the name for a continuous sequence of activities that form the longest duration/path through a network?
Critical Path
127
Name two types of graphical representations of a network diagram
AoA and AoN
128
What does "managing a project" mean?
To control cost on a time schedule
129
Describe what "Top Down Planning" means
Starting with an overall view of the project and then breaking it down into it's major components. Then breaking those components down into sub elements until a sufficient level of detail is attained.
130
Name three types of rental and also the risk levels for each one
1) In-House Rental (LOW RISK)
2) 3rd Part Rental (LOW RISK)
3) Owned and Maintained (HIGH RISK)
131
Name 3 types of unidentified Markup
1) Productivity Hedge
2) Special Event
3) Soft Subcontractors
132
Name three types of identified contingency (Markup)
1) Profit
2) Risk Coverage
3) Home Office / Administrative Expenses
133
What is a Productivity Hedge?
Accounting for potentially lower than expected performance from laborers
134
List 2 Labour Considerations:
1. Overtime
2. Shift Differential
135
Cash outlay
a cash outlay is money a company pays for its operating expenses.
