JHHS Webinar Quiz - Section 4 - Examples of Potential Labor Overcharges in Change Orders

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In the following 5 question self-test, please read each question and all of the possible answers carefully, then choose the answer that best corresponds to the points made during the webinar.

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1. Some material unit price line items are "composite" unit prices which means that material unit price may include more than one component of the material unit. For example, IMC conduit may already include the cost of couplings in addition to the conduit. Therefore, it would be incorrect for a contractor to charge material costs separately for IMC conduit couplings if the cost of the couplings was already included in the "composite" price of the IMC conduit. *

True

False

2. Which options might be considered when checking the appropriateness of material pricing used by a contractor in a change order? *

Request the contractor to provide you with recent invoices for similar purchases on the materials.

Check material pricing in industry standard estimating guides such as R. S, Means and/or Tra-Ser Average Market Price (AMP) for electrical or mechanical commodities.

Check material prices using an internet search for similar material prices

Any of the choices or any combination of the choices

Request the contractor to provide competitive quotes for the material included in the change order pricing?

3. Which of the following will result in everything including estimated labor, etc. in the change order to be overstated even if everything else in the change order pricing is correct? *

Overstated Material Unit Prices

Overstated estimated of material quantities

Markups added to estimated materials

Charging for small tools in estimated material costs

4. Which of the following options might be used when checking the appropriateness of equipment charges included in change order pricing? *

Check equipment rental rates for similar pieces of equipment by using an internet search

Check equipment rental rates in Equipment Rental Rate Blue Book (published by Equipment Watch)

Check equipment rental rates in what is commonly referreed to ad the AED rental Rate Greenbook (published by Equipment Watch)

Check equipment rental rates in industry standard reference guides such as R. S. Means

Any of the choices or any combination of the choices

5. If a contractor used a piece of equipment 8 hours per day, 5 days per week for 4 weeks for a total of 20 days or a total of 160 hours of use in performing change order work, which of the following rates should be used? *

The published equipment daily rate times 20 days

The published weekly rate times 4

The published monthly rate times 1

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