Examination Limited Tier Practice Exam
2026 | 100 Questions & Answers with
Detailed Rationales | Complete Exam
Prep & Study Guide
1. What is the primary purpose of a construction schedule?
A. Determine the contractor's tax liability
B. Establish the sequence and timing of project activities
C. Determine the architect's fee
D. Calculate the project's property taxes
Answer: Establish the sequence and timing of project activities
Rationale: A construction schedule coordinates activities, resources, milestones,
and completion dates so that the project can be managed efficiently.
2. Which document normally establishes the contractual requirements for a
construction project?
A. Daily log
B. Weather report
C. Construction contract
D. Material delivery ticket
,Answer: Construction contract
Rationale: The construction contract establishes the legal obligations, scope of
work, price, payment provisions, and other terms agreed upon by the parties.
3. What is the primary purpose of construction drawings?
A. Establish employee wages
B. Communicate the physical design and construction requirements
C. Calculate payroll taxes
D. Establish insurance premiums
Answer: Communicate the physical design and construction requirements
Rationale: Drawings provide visual information concerning dimensions,
locations, materials, details, and construction requirements.
4. What is the primary purpose of project specifications?
A. Describe required materials, workmanship, and standards
B. Determine employee vacation time
C. Establish property taxes
D. Replace the construction contract
Answer: Describe required materials, workmanship, and standards
Rationale: Specifications supplement drawings by defining materials, quality
standards, installation requirements, and workmanship.
5. A contractor discovers a conflict between the drawings and specifications.
What should the contractor do first?
A. Ignore the conflict
B. Choose the cheaper option
C. Request clarification from the appropriate design authority
D. Allow the subcontractor to decide
Answer: Request clarification from the appropriate design authority
,Rationale: Conflicting contract documents should be clarified before work
proceeds to avoid defective work, delays, and disputes.
6. What does a change order generally accomplish?
A. Changes the agreed scope, cost, or time of the contract
B. Terminates every subcontract
C. Replaces the building permit
D. Eliminates insurance requirements
Answer: Changes the agreed scope, cost, or time of the contract
Rationale: A properly authorized change order documents modifications to the
original contract requirements.
7. Which estimating method involves calculating quantities of individual
materials and labor?
A. Square-foot estimate
B. Unit-price estimate
C. Quantity takeoff
D. Allowance estimate
Answer: Quantity takeoff
Rationale: A quantity takeoff identifies and measures materials and work items
so their costs can be estimated.
8. A contractor estimates direct costs at $80,000 and indirect costs at $20,000.
What is the total cost before profit?
A. $60,000
B. $80,000
C. $100,000
D. $120,000
Answer: $100,000
, Rationale: Direct costs of $80,000 plus indirect costs of $20,000 equal total costs
of $100,000 before profit.
9. Which is normally considered a direct construction cost?
A. Corporate office rent
B. Jobsite labor
C. General advertising
D. Company accounting software
Answer: Jobsite labor
Rationale: Direct costs can be specifically attributed to a particular project, such
as project labor and materials.
10. Which is normally an indirect cost?
A. Concrete placed in a foundation
B. Lumber installed in a wall
C. Corporate office overhead
D. Brick installed on the building
Answer: Corporate office overhead
Rationale: Indirect costs support business operations but cannot normally be
assigned directly to one specific construction activity.
11. What is the purpose of a contingency allowance?
A. Guarantee a profit
B. Provide funds for reasonably anticipated unknown or variable costs
C. Eliminate the need for estimating
D. Replace insurance
Answer: Provide funds for reasonably anticipated unknown or variable costs
Rationale: A contingency can provide a financial allowance for uncertainties
that may arise during construction.