Oregon Construction Contractors (CCB) Practice Test

What is the primary document that outlines construction costs for a project?

1. Project Proposal

2. Change Order

3. Construction Schedule

4. Bid Estimate

The correct answer is: Bid Estimate

The primary document that outlines construction costs for a project is the bid estimate. A bid estimate provides a detailed breakdown of the anticipated costs associated with labor, materials, equipment, and other expenses necessary to complete a construction project. It is prepared by contractors in response to a request for proposals (RFP) or a request for quotes (RFQ) issued by the client or project owner. The bid estimate serves as a critical tool for both the contractor and the client; it allows the contractor to assess the feasibility of a project and offers the client a clear understanding of the potential financial obligations involved. A comprehensive bid estimate not only reflects the estimated total costs but may also include contingencies, overhead, and profit margins, giving a holistic view of project budgeting. In terms of the other options, a project proposal typically outlines the contractor's approach and methodology for completing a project rather than focusing solely on costs. A change order involves adjustments to the original contract due to modifications requested during the project's execution, which can affect costs but is not the primary document for outlining initial construction costs. The construction schedule primarily details timelines and sequencing of tasks, but it does not explicitly provide financial estimates or cost breakdowns related to the project.