Estimating Practice Exam

Which of the following elements is NOT typically included in price quotations?

1. Materials costs

2. Labor costs

3. Transportation fees

4. Subcontractor performance guarantees

The correct answer is: Subcontractor performance guarantees

Price quotations typically include direct costs associated with completing a project or providing a service. This includes materials costs, which cover the expenses of raw materials needed for production; labor costs, which encompass wages and benefits for workers involved in the project; and transportation fees, which account for the costs of delivering materials or product to the job site. Subcontractor performance guarantees, on the other hand, are commitments related to the performance and reliability of subcontractors rather than direct costs of a project. These guarantees may address issues like quality assurance or timeline adherence but do not directly impact the pricing quoted for the main components of the project. As such, they are not standard elements included in price quotations.