AL SC Specialty Construction Contractor
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationales 2027 Q&A | Instant
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1. What is the primary purpose of a construction contract?
A. To eliminate all project risks
B. To establish the rights and obligations of the parties
C. To guarantee that the project will make a profit
D. To replace all building codes
Answer: B. To establish the rights and obligations of the parties
Rationale: A construction contract defines the scope of work,
responsibilities, payment terms, schedules, and other obligations of the
parties.
, 2. Which document generally describes the materials, workmanship, and
performance requirements for a construction project?
A. Specification
B. Payroll register
C. Purchase receipt
D. Change-order log
Answer: A. Specification
Rationale: Specifications establish detailed requirements for materials,
products, workmanship, quality, and performance.
3. What is the best reason for a specialty contractor to carefully review
the scope of work before bidding?
A. To avoid having to obtain insurance
B. To determine the exact work and resources required
C. To eliminate the need for a contract
D. To avoid paying employees
Answer: B. To determine the exact work and resources required
Rationale: Reviewing the scope allows the contractor to identify labor,
materials, equipment, subcontracting, scheduling, and other costs before
submitting a bid.
, 4. Which type of contract generally provides payment based on the
actual cost of the work plus an agreed fee?
A. Lump-sum contract
B. Cost-plus contract
C. Unit-price contract
D. Fixed-price purchase order
Answer: B. Cost-plus contract
Rationale: Under a cost-plus arrangement, the contractor is reimbursed for
allowable project costs and receives an agreed markup, fee, or profit.
5. What is a change order?
A. A payroll document
B. A formal modification to the original contract
C. A building permit
D. A warranty certificate
Answer: B. A formal modification to the original contract
Rationale: A change order documents an approved change in the scope,
price, schedule, or other contractual requirements.
6. Before performing work that requires a permit, a contractor should
generally:
, A. Begin work and obtain the permit afterward
B. Verify applicable permitting requirements and obtain required permits
C. Ask the supplier to obtain every permit
D. Wait until final inspection
Answer: B. Verify applicable permitting requirements and obtain required
permits
Rationale: Required permits should be identified and obtained before
regulated work begins, subject to the requirements of the applicable
authority having jurisdiction.
7. Which organization administers federal workplace safety regulations
for most private-sector construction employers?
A. OSHA
B. IRS
C. EPA exclusively
D. FEMA
Answer: A. OSHA
Rationale: The Occupational Safety and Health Administration establishes
and enforces federal workplace safety and health requirements applicable
to covered employers.
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationales 2027 Q&A | Instant
Download Pdf
1. What is the primary purpose of a construction contract?
A. To eliminate all project risks
B. To establish the rights and obligations of the parties
C. To guarantee that the project will make a profit
D. To replace all building codes
Answer: B. To establish the rights and obligations of the parties
Rationale: A construction contract defines the scope of work,
responsibilities, payment terms, schedules, and other obligations of the
parties.
, 2. Which document generally describes the materials, workmanship, and
performance requirements for a construction project?
A. Specification
B. Payroll register
C. Purchase receipt
D. Change-order log
Answer: A. Specification
Rationale: Specifications establish detailed requirements for materials,
products, workmanship, quality, and performance.
3. What is the best reason for a specialty contractor to carefully review
the scope of work before bidding?
A. To avoid having to obtain insurance
B. To determine the exact work and resources required
C. To eliminate the need for a contract
D. To avoid paying employees
Answer: B. To determine the exact work and resources required
Rationale: Reviewing the scope allows the contractor to identify labor,
materials, equipment, subcontracting, scheduling, and other costs before
submitting a bid.
, 4. Which type of contract generally provides payment based on the
actual cost of the work plus an agreed fee?
A. Lump-sum contract
B. Cost-plus contract
C. Unit-price contract
D. Fixed-price purchase order
Answer: B. Cost-plus contract
Rationale: Under a cost-plus arrangement, the contractor is reimbursed for
allowable project costs and receives an agreed markup, fee, or profit.
5. What is a change order?
A. A payroll document
B. A formal modification to the original contract
C. A building permit
D. A warranty certificate
Answer: B. A formal modification to the original contract
Rationale: A change order documents an approved change in the scope,
price, schedule, or other contractual requirements.
6. Before performing work that requires a permit, a contractor should
generally:
, A. Begin work and obtain the permit afterward
B. Verify applicable permitting requirements and obtain required permits
C. Ask the supplier to obtain every permit
D. Wait until final inspection
Answer: B. Verify applicable permitting requirements and obtain required
permits
Rationale: Required permits should be identified and obtained before
regulated work begins, subject to the requirements of the applicable
authority having jurisdiction.
7. Which organization administers federal workplace safety regulations
for most private-sector construction employers?
A. OSHA
B. IRS
C. EPA exclusively
D. FEMA
Answer: A. OSHA
Rationale: The Occupational Safety and Health Administration establishes
and enforces federal workplace safety and health requirements applicable
to covered employers.
