Virginia Exam Advanced
In the previous year, a company had revenues of $500,000, project overhead of $40,000 and
company overhead of $75,000. The company expects the percentage for project and company
overhead to remain the same for the current year. The company desires to make a 10% profit on a
project it is bidding. The project would have $80,000 in direct costs. What should the bid price be? -
✔✔ correct answer Between $110,000 and $120,000.
What is the name of the process when a facilitator meets with the major participants in a project,
prior to the commencement of the project, to identify the shared goals of all participants? - ✔✔
correct answer Partnering.
A cost plus contract calls for the contractor to receive direct costs for labor and materials, and a
markup of 20% of direct costs. The contractor is also to receive a bonus of 15% of savings if total cost
to the owner is less than $80,000, and a bonus of $1,000 per day if the project is completed early.
Final costs for direct labor and materials are $60,000. The project is completed 3 days early. What is
the total amount due the contractor? - ✔✔ correct answer Between $75,001 and $80,000.
The owner requests for changes which will cost the contractor $15,000 in labor and materials and
$2,250 in overhead costs. With the change, the contractor would be relieved of $18,000 in labor and
materials costs, and $2,400 in overhead costs from the original contract. The original bid included
profit of 20% of all costs. The contractor wants to make a profit of 20% of all costs on the changes.
The adjusted contract price for the change order should be - ✔✔ correct answer a decrease of
$3,780.
A lump sum contract on a project has a total contract price of $160,000. Retainage has been held
back at 10%. The contractor has received progress payments for 75% of the project. The contractor
submits a request for final payment for the now completed project. The final payment amount
should be for - ✔✔ correct answer more than $50,000.
A permit is obtained on Friday, May 1. The materials are to be delivered May 8. The materials are
needed when labor begins on May 11. It is estimated that 15 days of labor are REQUIRED. The crew
will work every day, including weekends and holidays. The project is scheduled to be completed on
June 8. How many float days are available for the labor for this project? - ✔✔ correct answer 13
Which of the following would typically be covered by a contractor's comprehensive general liability
insurance policy? - ✔✔ correct answer Damage to adjoining property from a crane accident.
A contractor puts in a claim under a comprehensive standard general liability policy. The policy has
no additional coverage, riders, or floaters, and has a $500 deductible per occurrence. The claim is for
a job-site accident that caused $2,000 of injuries to employees, $1,800 of injuries to a pedestrian,
In the previous year, a company had revenues of $500,000, project overhead of $40,000 and
company overhead of $75,000. The company expects the percentage for project and company
overhead to remain the same for the current year. The company desires to make a 10% profit on a
project it is bidding. The project would have $80,000 in direct costs. What should the bid price be? -
✔✔ correct answer Between $110,000 and $120,000.
What is the name of the process when a facilitator meets with the major participants in a project,
prior to the commencement of the project, to identify the shared goals of all participants? - ✔✔
correct answer Partnering.
A cost plus contract calls for the contractor to receive direct costs for labor and materials, and a
markup of 20% of direct costs. The contractor is also to receive a bonus of 15% of savings if total cost
to the owner is less than $80,000, and a bonus of $1,000 per day if the project is completed early.
Final costs for direct labor and materials are $60,000. The project is completed 3 days early. What is
the total amount due the contractor? - ✔✔ correct answer Between $75,001 and $80,000.
The owner requests for changes which will cost the contractor $15,000 in labor and materials and
$2,250 in overhead costs. With the change, the contractor would be relieved of $18,000 in labor and
materials costs, and $2,400 in overhead costs from the original contract. The original bid included
profit of 20% of all costs. The contractor wants to make a profit of 20% of all costs on the changes.
The adjusted contract price for the change order should be - ✔✔ correct answer a decrease of
$3,780.
A lump sum contract on a project has a total contract price of $160,000. Retainage has been held
back at 10%. The contractor has received progress payments for 75% of the project. The contractor
submits a request for final payment for the now completed project. The final payment amount
should be for - ✔✔ correct answer more than $50,000.
A permit is obtained on Friday, May 1. The materials are to be delivered May 8. The materials are
needed when labor begins on May 11. It is estimated that 15 days of labor are REQUIRED. The crew
will work every day, including weekends and holidays. The project is scheduled to be completed on
June 8. How many float days are available for the labor for this project? - ✔✔ correct answer 13
Which of the following would typically be covered by a contractor's comprehensive general liability
insurance policy? - ✔✔ correct answer Damage to adjoining property from a crane accident.
A contractor puts in a claim under a comprehensive standard general liability policy. The policy has
no additional coverage, riders, or floaters, and has a $500 deductible per occurrence. The claim is for
a job-site accident that caused $2,000 of injuries to employees, $1,800 of injuries to a pedestrian,
