Indiana General Contractor License
Examination — Local Jurisdiction
Practice Exam 2026 | 100 Questions &
Answers with Detailed Rationales |
Complete Exam Prep & Study Guide
1. A general contractor is reviewing a commercial project in Indiana where the
local jurisdiction has adopted amendments that are more restrictive than
the contractor's customary practices. Which requirement should govern
the work?
A. The contractor's preferred construction standard
B. The oldest applicable code edition
C. The legally adopted requirements enforced by the applicable authority having
jurisdiction
D. The manufacturer's minimum recommendation only
Rationale: The contractor must comply with the codes, ordinances,
amendments, and other legally enforceable requirements applicable to the
project and jurisdiction.
, 2. During bidding, a contractor discovers that the architectural drawings and
structural drawings contain conflicting dimensions. What is the best course
of action before submitting a final bid?
A. Use the smaller dimension to reduce cost
B. Use the structural drawing automatically
C. Average the two dimensions
D. Request clarification through the established design-question/RFI process
Rationale: Conflicting contract documents should be resolved formally rather
than interpreted in a way that creates unapproved scope or cost assumptions.
3. A contractor receives a notice of a concealed site condition that materially
differs from the conditions represented in the contract documents. What
should the contractor generally do first?
A. Proceed and submit a claim after completion
B. Document the condition and provide prompt notice as required by the
contract
C. Remove the condition without notifying anyone
D. Terminate the project immediately
Rationale: Prompt documentation and notice preserve the parties' ability to
evaluate entitlement to additional time or compensation under the contract.
4. Which document most directly establishes the contractual obligations
between the owner and general contractor?
A. Daily report
B. Purchase order from a supplier
C. Executed construction agreement and incorporated contract documents
D. Contractor's preliminary estimate
Rationale: The executed agreement and incorporated documents define the
parties' rights, duties, scope, payment provisions, and other contractual
requirements.
, 5. A contractor wants to substitute a specified material with another product
having different performance characteristics. What is normally required?
A. Verbal approval from a laborer
B. Automatic substitution whenever the substitute costs less
C. Formal approval through the contract's substitution/change procedure
D. Installation first followed by notification
Rationale: Material substitutions can affect performance, warranties, code
compliance, appearance, and cost and therefore normally require formal
approval.
6. A subcontractor's work is defective but has not yet been concealed by
subsequent construction. What is the general contractor's best response?
A. Conceal the work to maintain schedule
B. Wait until final inspection
C. Require correction before subsequent work conceals the defect
D. Ignore the defect if the owner has not noticed it
Rationale: Defective work should be identified and corrected promptly to
prevent additional costs and avoid compromising later work.
7. Which scheduling method identifies activities whose delays can directly
affect the project's completion date?
A. Cash-flow schedule
B. Procurement log
C. Critical-path scheduling
D. Equipment inventory
Rationale: Critical-path analysis identifies activities controlling the project's
overall duration and helps the contractor evaluate schedule impacts.
8. An activity has an early start of Day 12, an early finish of Day 17, a late start
of Day 15, and a late finish of Day 20. How much total float does the activity
have?
, A. 0 days
B. 2 days
C. 3 days
D. 5 days
Rationale: Total float can be calculated as late start minus early start: 15 − 12 =
3 days.
9. A contractor's direct cost for a project is $420,000. Overhead is estimated
at 10% of direct cost. What is the estimated cost before profit?
A. $420,000
B. $430,000
C. $462,000
D. $504,000
Rationale: Ten percent of $420,000 is $42,000. Adding overhead gives $462,000
before profit.
10.A contractor wants a 10% profit margin on a selling price rather than a 10%
markup on cost. If total cost is $540,000, what selling price produces a 10%
margin?
A. $594,000
B. $600,000
C. $600,000
D. $648,000
Rationale: A 10% margin means cost represents 90% of the selling price.
$540,000 ÷ 0.90 = $600,000.
11.What is the primary purpose of a construction submittal?
A. Replace the contract drawings
B. Establish the contractor's profit
C. Allow specified products, materials, and details to be reviewed for
Examination — Local Jurisdiction
Practice Exam 2026 | 100 Questions &
Answers with Detailed Rationales |
Complete Exam Prep & Study Guide
1. A general contractor is reviewing a commercial project in Indiana where the
local jurisdiction has adopted amendments that are more restrictive than
the contractor's customary practices. Which requirement should govern
the work?
A. The contractor's preferred construction standard
B. The oldest applicable code edition
C. The legally adopted requirements enforced by the applicable authority having
jurisdiction
D. The manufacturer's minimum recommendation only
Rationale: The contractor must comply with the codes, ordinances,
amendments, and other legally enforceable requirements applicable to the
project and jurisdiction.
, 2. During bidding, a contractor discovers that the architectural drawings and
structural drawings contain conflicting dimensions. What is the best course
of action before submitting a final bid?
A. Use the smaller dimension to reduce cost
B. Use the structural drawing automatically
C. Average the two dimensions
D. Request clarification through the established design-question/RFI process
Rationale: Conflicting contract documents should be resolved formally rather
than interpreted in a way that creates unapproved scope or cost assumptions.
3. A contractor receives a notice of a concealed site condition that materially
differs from the conditions represented in the contract documents. What
should the contractor generally do first?
A. Proceed and submit a claim after completion
B. Document the condition and provide prompt notice as required by the
contract
C. Remove the condition without notifying anyone
D. Terminate the project immediately
Rationale: Prompt documentation and notice preserve the parties' ability to
evaluate entitlement to additional time or compensation under the contract.
4. Which document most directly establishes the contractual obligations
between the owner and general contractor?
A. Daily report
B. Purchase order from a supplier
C. Executed construction agreement and incorporated contract documents
D. Contractor's preliminary estimate
Rationale: The executed agreement and incorporated documents define the
parties' rights, duties, scope, payment provisions, and other contractual
requirements.
, 5. A contractor wants to substitute a specified material with another product
having different performance characteristics. What is normally required?
A. Verbal approval from a laborer
B. Automatic substitution whenever the substitute costs less
C. Formal approval through the contract's substitution/change procedure
D. Installation first followed by notification
Rationale: Material substitutions can affect performance, warranties, code
compliance, appearance, and cost and therefore normally require formal
approval.
6. A subcontractor's work is defective but has not yet been concealed by
subsequent construction. What is the general contractor's best response?
A. Conceal the work to maintain schedule
B. Wait until final inspection
C. Require correction before subsequent work conceals the defect
D. Ignore the defect if the owner has not noticed it
Rationale: Defective work should be identified and corrected promptly to
prevent additional costs and avoid compromising later work.
7. Which scheduling method identifies activities whose delays can directly
affect the project's completion date?
A. Cash-flow schedule
B. Procurement log
C. Critical-path scheduling
D. Equipment inventory
Rationale: Critical-path analysis identifies activities controlling the project's
overall duration and helps the contractor evaluate schedule impacts.
8. An activity has an early start of Day 12, an early finish of Day 17, a late start
of Day 15, and a late finish of Day 20. How much total float does the activity
have?
, A. 0 days
B. 2 days
C. 3 days
D. 5 days
Rationale: Total float can be calculated as late start minus early start: 15 − 12 =
3 days.
9. A contractor's direct cost for a project is $420,000. Overhead is estimated
at 10% of direct cost. What is the estimated cost before profit?
A. $420,000
B. $430,000
C. $462,000
D. $504,000
Rationale: Ten percent of $420,000 is $42,000. Adding overhead gives $462,000
before profit.
10.A contractor wants a 10% profit margin on a selling price rather than a 10%
markup on cost. If total cost is $540,000, what selling price produces a 10%
margin?
A. $594,000
B. $600,000
C. $600,000
D. $648,000
Rationale: A 10% margin means cost represents 90% of the selling price.
$540,000 ÷ 0.90 = $600,000.
11.What is the primary purpose of a construction submittal?
A. Replace the contract drawings
B. Establish the contractor's profit
C. Allow specified products, materials, and details to be reviewed for
