MARYLAND HOME IMPROVEMENT FINAL EXAM
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Check of other VIOLATIONS and fines page 1-57 to 1-59 - ✔✔Check book
✔✔"Consumer goods" or "consumer services" mean - ✔✔(1) good or services
purchased, leased or rented primarily for personal, family or househol dpurposes; and
(2) courses of instruction or training regardless of the purpose for which they are taken
✔✔What does "Door to Door" sales mean - ✔✔Door to door sales mean a sle, lease, or
rental of consumer goods or consumer services under single or multiple contracts with a
purchase price of $25 or more
✔✔Check DOOR TO DOOR SALES - ✔✔Pages 1-60 - 1-64
✔✔Ethic in Bidding - ✔✔Good ethical conduct is necessary to maintain the integrity of
the bidding process
✔✔T or F - A good estimate will fall within 1 to 2 percent of actual construction costs -
✔✔True
✔✔Define Specifications - ✔✔details that determine the type of materials or methods to
be used in construction. if there is conflict between specs and applicable codes, you
must follow the stricter of the 2 (The codes are the minimum requirements by law)
✔✔Define contract - ✔✔the agreement between you and owner
✔✔Define bond - ✔✔may be required as part of bid submittal (bid and performance
bonds)
✔✔Determine estimated costs using the QUANTITY TAKE OFF METHOD - ✔✔After
estimating materials and labor, the following are added:
- Subcontractor fees
- labor burden
- project overhead
- project equipment
- contingencies
- allowances
- company overhead
- profit
✔✔What can help determine labor costs for each task? - ✔✔Information from previous
jobs can help accurate job costs
, ✔✔What is used to determine labor burden - ✔✔- Medicare and SS
- Fed unemployment
- Workers Comp
- Liability ins
- State unemployment ins
- company benefits (health ins , vacations, etc)
✔✔Project equipment cost - Rented - ✔✔Take into consideration:
- Equipment rental rate
- labor cost to pick up and return
- labor cost to operate
- other costs (fuel)
✔✔Rent, lease or buy? What are the advantages of leasing? - ✔✔- no down payment
- duration of payments over a long period making them lower
- lease payments are deductible
- obsolete equipment is returned to owner
✔✔Contingencies - ✔✔A contingency is sometimes added to an estimate to protect the
contractor of anticipated problem or condition.
For example - a low risk project may have 2% added
✔✔How much percentage is usually overhead? - ✔✔5 to 10 percent
✔✔Examples of project overhead - ✔✔- bonds
- temporary storage
- temp office
- security guard
- utilities
- dumpsters
- portable toilets
✔✔Example of company overhead - ✔✔- office rent
- accounting fees
- taxes
- telephone
- legal fees
- Admin labor
✔✔How to calculate/add overhead - ✔✔Lets say you calculated direct costs $100,000
Project OH 9%, Co OH 11%
--> Direct costs are 80% of the total bid price - SINCE OH IS PERCENTAGE OR
REVENUE, dive direct costs by 80% (0.80)
$100,000/.80= $125,000
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Check of other VIOLATIONS and fines page 1-57 to 1-59 - ✔✔Check book
✔✔"Consumer goods" or "consumer services" mean - ✔✔(1) good or services
purchased, leased or rented primarily for personal, family or househol dpurposes; and
(2) courses of instruction or training regardless of the purpose for which they are taken
✔✔What does "Door to Door" sales mean - ✔✔Door to door sales mean a sle, lease, or
rental of consumer goods or consumer services under single or multiple contracts with a
purchase price of $25 or more
✔✔Check DOOR TO DOOR SALES - ✔✔Pages 1-60 - 1-64
✔✔Ethic in Bidding - ✔✔Good ethical conduct is necessary to maintain the integrity of
the bidding process
✔✔T or F - A good estimate will fall within 1 to 2 percent of actual construction costs -
✔✔True
✔✔Define Specifications - ✔✔details that determine the type of materials or methods to
be used in construction. if there is conflict between specs and applicable codes, you
must follow the stricter of the 2 (The codes are the minimum requirements by law)
✔✔Define contract - ✔✔the agreement between you and owner
✔✔Define bond - ✔✔may be required as part of bid submittal (bid and performance
bonds)
✔✔Determine estimated costs using the QUANTITY TAKE OFF METHOD - ✔✔After
estimating materials and labor, the following are added:
- Subcontractor fees
- labor burden
- project overhead
- project equipment
- contingencies
- allowances
- company overhead
- profit
✔✔What can help determine labor costs for each task? - ✔✔Information from previous
jobs can help accurate job costs
, ✔✔What is used to determine labor burden - ✔✔- Medicare and SS
- Fed unemployment
- Workers Comp
- Liability ins
- State unemployment ins
- company benefits (health ins , vacations, etc)
✔✔Project equipment cost - Rented - ✔✔Take into consideration:
- Equipment rental rate
- labor cost to pick up and return
- labor cost to operate
- other costs (fuel)
✔✔Rent, lease or buy? What are the advantages of leasing? - ✔✔- no down payment
- duration of payments over a long period making them lower
- lease payments are deductible
- obsolete equipment is returned to owner
✔✔Contingencies - ✔✔A contingency is sometimes added to an estimate to protect the
contractor of anticipated problem or condition.
For example - a low risk project may have 2% added
✔✔How much percentage is usually overhead? - ✔✔5 to 10 percent
✔✔Examples of project overhead - ✔✔- bonds
- temporary storage
- temp office
- security guard
- utilities
- dumpsters
- portable toilets
✔✔Example of company overhead - ✔✔- office rent
- accounting fees
- taxes
- telephone
- legal fees
- Admin labor
✔✔How to calculate/add overhead - ✔✔Lets say you calculated direct costs $100,000
Project OH 9%, Co OH 11%
--> Direct costs are 80% of the total bid price - SINCE OH IS PERCENTAGE OR
REVENUE, dive direct costs by 80% (0.80)
$100,000/.80= $125,000
