QUESTIONS AND CORRECT ANSWERS WITH
RATIONALE LATEST UPDATE ALREADY GRADED A+
The NASCLA Accredited Examination is a standardized, open-book trade exam
for commercial general building contractors. It is accepted by multiple states as a
qualifying requirement for contractor licensing. The exam consists of 115 multiple-
choice questions with a 5.5-hour time limit and a passing score of 81 correct
answers (70%). Content covers two major domains: Procurement and Contracting
Requirements (31 questions) and General Requirements (25 questions), with the
remaining 59 questions covering building trades, including site construction,
concrete, masonry, metals, wood, thermal/moisture protection, doors/windows,
finishes, mechanical/plumbing, and electrical systems. Candidates must reference
the provided code books to answer questions accurately.
Section 1: Procurement, Contracting, and Business Law (Questions 1-80)
1. A contractor is preparing a bid for a public works project. According to standard
public procurement procedures, what is the primary purpose of requiring a bid
bond?
A) To guarantee the contractor will start work immediately
B) To guarantee the contractor will enter into a contract at the bid price if awarded
C) To guarantee the contractor will complete the project on time
D) To guarantee the contractor will pay all subcontractors
Answer: B
Rationale: A bid bond protects the project owner by ensuring that the bidder, if
awarded the contract, will enter into the contract at the bid price and provide the
required performance and payment bonds. It does not guarantee project completion
or subcontractor payment .
2. A contractor receives a notice of award for a construction project. According to
standard contract documents (AIA A201 or similar), when does the contract time
typically begin?
,A) Upon receipt of the notice of award
B) On the date established in the notice to proceed
C) When the first materials are delivered to the site
D) Upon signing of the final contract documents
Answer: B
Rationale: The contract time generally begins on the date established in the notice
to proceed issued by the owner or architect. This formal document authorizes the
contractor to begin work and establishes the project schedule baseline. The notice
of award precedes this but does not typically trigger the contract time clock .
3. A project experiences an unforeseen subsurface condition that requires
additional work and extends the schedule. Under a typical AIA A201 General
Conditions contract, what type of claim has the contractor most likely
encountered?
A) A claim for acceleration
B) A claim for a differing site condition (Type I or Type II)
C) A claim for loss of productivity
D) A claim for termination for convenience
Answer: B
Rationale: Unforeseen subsurface conditions typically constitute a differing site
condition claim. Type I DSC involves conditions that differ materially from those
indicated in the contract documents. Type II involves unusual conditions of an
unusual nature that differ materially from those ordinarily encountered. Both may
entitle the contractor to additional time and/or compensation .
4. A contractor is preparing a preliminary estimate based on historical data from
similar projects. Which estimating method is being used?
A) Unit price estimating
B) Assembly or systems estimating
C) Parametric or conceptual estimating
D) Detailed quantity takeoff
Answer: C
Rationale: Parametric or conceptual estimating uses historical data and statistical
relationships between project parameters (such as square footage, number of
rooms, or building type) and costs. This method is useful in early project phases
when detailed design information is not yet available, providing a rough order of
magnitude estimate .
5. In construction cost estimating, what does the term overhead typically include?
A) Only direct project costs such as labor and materials
,B) Office expenses, insurance, and administrative salaries not attributable to a
specific project
C) Only equipment rental costs
D) Profit margin and contingency only
Answer: B
Rationale: Overhead in construction estimating refers to indirect costs necessary to
run the business but not directly attributable to a specific project. This includes
office rent, administrative salaries, general liability insurance, utilities, and other
operational expenses. These costs must be distributed across all projects and
recovered through markup .
6. A contractor is preparing a bid for a commercial office building. According to
standard construction estimating practices, which cost component typically
represents the largest percentage of the total project cost?
A) General conditions and overhead
B) Labor costs
C) Material costs
D) Subcontractor costs
Answer: D
Rationale: In most commercial construction projects, subcontractor costs represent
the largest percentage of total project cost, often 60-80% of the contract amount.
This is because specialty work (electrical, mechanical, plumbing, concrete, steel) is
typically subcontracted. While labor and materials are significant, the aggregated
costs of all subcontractors typically exceed any single direct cost category .
7. A contractor is awarded a project with a liquidated damages clause. What is the
primary purpose of this clause?
A) To provide a bonus for early completion
B) To establish a predetermined amount of damages the contractor must pay for
each day the project is delayed
C) To increase the contractor's profit margin
D) To allow the contractor to terminate the contract
Answer: B
Rationale: A liquidated damages clause establishes a predetermined amount of
money the contractor must pay to the owner for each day the project is delayed
beyond the scheduled completion date. This is intended to compensate the owner
for the costs of delay and is typically specified in the contract documents.
, 8. A contractor is considering submitting a bid on a project with an extremely tight
timeline. What is the most important factor the contractor should assess before
bidding?
A) The cost of materials
B) The availability and productivity of labor and subcontractors
C) The interest rate on the construction loan
D) The aesthetic design of the building
Answer: B
Rationale: When a project has a tight timeline, the contractor must carefully assess
whether they can secure sufficient skilled labor and subcontractors to complete the
work on schedule. Labor availability and productivity are often the most critical
constraints in fast-track construction projects.
9. Under standard construction contracts, a change order is most accurately
described as:
A) A minor adjustment to the project schedule
B) A written document that modifies the contract, including changes to scope, cost,
and/or time
C) An informal request to change the color of paint
D) A change made by the contractor without owner approval
Answer: B
Rationale: A change order is a formal, written amendment to the construction
contract that documents changes to the scope of work, project cost, and/or
schedule. It is a legally binding document that must be signed by the owner,
contractor, and often the architect or engineer.
10. A contractor receives a payment bond from a subcontractor. What is the
primary purpose of this bond?
A) To guarantee the subcontractor's work quality
B) To guarantee the subcontractor will pay their suppliers and laborers
C) To guarantee the subcontractor will complete their scope of work
D) To guarantee the subcontractor will follow all safety regulations
Answer: B
Rationale: A payment bond is a type of surety bond that guarantees that the bonded
party (the subcontractor) will pay their suppliers, subcontractors, and laborers for
work performed on the project. This protects the general contractor and the owner
from lien claims.
11. A project is being delivered using the Design-Bid-Build method. In this
delivery method, the contractor typically has which relationship with the designer?