Original Practice Questions 2 versions
1. A contractor is reviewing contract documents for a commercial
project. Which document typically defines the scope of work, contract
sum, and time for completion?
A. The project manual
B. The agreement between owner and contractor
C. The general conditions
D. The technical specifications
B. The agreement between owner and contractor
The agreement (contract) is the primary document that defines the scope of
work, contract sum, time for completion, and the respective rights and
obligations of the parties. The project manual contains the bidding
documents, general conditions, and specifications, but the agreement itself is
the binding contract.
2. Which type of contract places the greatest risk on the contractor for
cost overruns?
A. Cost-plus-fee contract
B. Unit price contract
,C. Lump sum (fixed price) contract
D. Time and materials contract
C. Lump sum (fixed price) contract
In a lump sum contract, the contractor agrees to complete the work for a
fixed price regardless of actual costs. If costs exceed the contract sum, the
contractor absorbs the loss. Cost-plus and time-and-materials contracts pass
cost risk to the owner.
3. A contractor discovers that the plans and specifications contain a
discrepancy between the drawings and the written specifications.
What is the correct course of action?
A. Proceed with the less expensive option
B. Request clarification from the architect/engineer before proceeding
C. Proceed with the drawings since they take precedence
D. Proceed with the specifications since they take precedence
B. Request clarification from the architect/engineer before proceeding
When a discrepancy exists, the contractor should request clarification through
a formal Request for Information (RFI). Proceeding without clarification may
result in performing work that does not comply with the contract documents.
4. In construction estimating, what is the purpose of a quantity
takeoff?
A. To calculate the total contract price
,B. To determine the quantities of materials and labor required for each
work item
C. To establish the project schedule
D. To determine the contractor's overhead and profit
B. To determine the quantities of materials and labor required for each
work item
A quantity takeoff is the process of measuring and listing the quantities of
materials, labor, and equipment required for each component of the work. It
forms the basis for pricing the estimate.
5. What is the difference between direct costs and indirect costs in a
construction estimate?
A. Direct costs are labor and materials; indirect costs are overhead and
profit
B. Direct costs are overhead; indirect costs are materials
C. Direct costs are profit; indirect costs are labor
D. There is no difference
A. Direct costs are labor and materials; indirect costs are overhead and
profit
Direct costs are those directly attributable to the work, such as labor,
materials, and equipment. Indirect costs (also called overhead) include
general conditions, home office overhead, and profit.
, 6. Which of the following is considered a general condition cost in a
construction estimate?
A. Concrete materials
B. Temporary power and site supervision
C. Structural steel
D. Roofing labor
B. Temporary power and site supervision
General conditions (also called general requirements) include project
management, temporary facilities, site supervision, temporary power and
water, and other costs required to support the work but not part of the
permanent construction.
7. What is the purpose of a contingency in a construction estimate?
A. To cover the contractor's profit
B. To cover unforeseen conditions or changes in scope
C. To pay for subcontractor markups
D. To cover the cost of permits
B. To cover unforeseen conditions or changes in scope
A contingency is an allowance included in the estimate to cover unexpected
conditions, minor changes, or price escalation. It is not a profit center but a
risk management tool.