VIRGINIA CONTRACTORS LICENSE EXAM – ADVANCED
(CLASS A) EXAMINATION COMPLETE QUESTIONS AND
DETAILED SOLUTIONS LATEST UPDATE THIS YEAR JUST
RELEASED
1. A Class A contractor is preparing a bid and discovers that the drawings conflict
with a written specification. What should the contractor do before submitting the
bid?
A. Automatically use the less expensive interpretation
B. Ignore the conflict until construction begins
C. Request clarification through the established bidding process
D. Select whichever interpretation benefits the contractor most
Answer: C
Rationale: Requesting clarification before bidding reduces ambiguity, protects
pricing accuracy, and establishes the intended requirements before contractual
obligations arise.
2. A contractor estimates direct labor at $82,000, materials at $146,000, and
equipment costs at $22,000. What are total direct costs?
A. $250,000
B. $228,000
C. $246,000
D. $250,000
Answer: A
Rationale: Adding labor, materials, and equipment produces $82,000 + $146,000
+ $22,000, resulting in $250,000 of direct costs.
,3. During contract negotiations, the owner requests extensive additional work but
refuses to modify the written contract. What should the contractor generally do?
A. Perform everything immediately without documentation
B. Document and obtain written authorization for changed work
C. Stop all project activities permanently
D. Bill the owner afterward without notifying anyone
Answer: B
Rationale: Written change authorization establishes scope, price, and schedule
adjustments while reducing later disputes regarding whether additional work was
authorized.
4. A contractor's overhead is $180,000 annually and anticipated annual revenue is
$1,200,000. What percentage of revenue represents overhead?
A. 12%
B. 15%
C. 18%
D. 20%
Answer: B
Rationale: Dividing $180,000 by $1,200,000 produces 0.15, meaning overhead
represents 15 percent of anticipated annual revenue.
5. Which financial statement most directly summarizes a company's assets,
liabilities, and owner's equity at a specific point in time?
A. Income statement
B. Cash-flow forecast
,C. Balance sheet
D. Job-cost report
Answer: C
Rationale: A balance sheet presents the company's financial position by listing
assets, liabilities, and equity at a specified reporting date.
6. A contractor notices that a subcontractor repeatedly performs work outside
the subcontract's defined scope. What is the most appropriate management
response?
A. Allow the work and resolve payment later
B. Immediately terminate the subcontractor
C. Ignore the additional work
D. Review the scope and document any authorized changes
Answer: D
Rationale: Reviewing contractual scope and documenting authorized changes
prevents unauthorized costs while preserving an orderly process for legitimate
modifications.
7. A project manager wants to determine whether a project is progressing
according to the approved schedule. Which document provides the most useful
comparison?
A. Original baseline schedule
B. Employee handbook
C. Equipment inventory
D. General ledger
, Answer: A
Rationale: Comparing current progress with the approved baseline schedule helps
identify deviations, delays, critical activities, and necessary corrective measures.
8. A contractor estimates $400,000 in direct costs and applies a 12% markup for
overhead. What amount does the 12% markup represent?
A. $36,000
B. $42,000
C. $48,000
D. $52,000
Answer: C
Rationale: Multiplying $400,000 by 0.12 gives $48,000, representing the amount
added for the stated overhead markup.
9. Why should a contractor maintain detailed records supporting requests for
payment on a large construction project?
A. To eliminate the need for inspections
B. To support earned amounts and resolve potential disputes
C. To avoid preparing project schedules
D. To guarantee immediate payment
Answer: B
Rationale: Detailed records demonstrate completed work, approved changes,
costs, and supporting documentation when payment amounts are questioned.
10. A contractor discovers that a critical material has a twelve-week delivery
period when the schedule allows only six weeks. What should happen first?
(CLASS A) EXAMINATION COMPLETE QUESTIONS AND
DETAILED SOLUTIONS LATEST UPDATE THIS YEAR JUST
RELEASED
1. A Class A contractor is preparing a bid and discovers that the drawings conflict
with a written specification. What should the contractor do before submitting the
bid?
A. Automatically use the less expensive interpretation
B. Ignore the conflict until construction begins
C. Request clarification through the established bidding process
D. Select whichever interpretation benefits the contractor most
Answer: C
Rationale: Requesting clarification before bidding reduces ambiguity, protects
pricing accuracy, and establishes the intended requirements before contractual
obligations arise.
2. A contractor estimates direct labor at $82,000, materials at $146,000, and
equipment costs at $22,000. What are total direct costs?
A. $250,000
B. $228,000
C. $246,000
D. $250,000
Answer: A
Rationale: Adding labor, materials, and equipment produces $82,000 + $146,000
+ $22,000, resulting in $250,000 of direct costs.
,3. During contract negotiations, the owner requests extensive additional work but
refuses to modify the written contract. What should the contractor generally do?
A. Perform everything immediately without documentation
B. Document and obtain written authorization for changed work
C. Stop all project activities permanently
D. Bill the owner afterward without notifying anyone
Answer: B
Rationale: Written change authorization establishes scope, price, and schedule
adjustments while reducing later disputes regarding whether additional work was
authorized.
4. A contractor's overhead is $180,000 annually and anticipated annual revenue is
$1,200,000. What percentage of revenue represents overhead?
A. 12%
B. 15%
C. 18%
D. 20%
Answer: B
Rationale: Dividing $180,000 by $1,200,000 produces 0.15, meaning overhead
represents 15 percent of anticipated annual revenue.
5. Which financial statement most directly summarizes a company's assets,
liabilities, and owner's equity at a specific point in time?
A. Income statement
B. Cash-flow forecast
,C. Balance sheet
D. Job-cost report
Answer: C
Rationale: A balance sheet presents the company's financial position by listing
assets, liabilities, and equity at a specified reporting date.
6. A contractor notices that a subcontractor repeatedly performs work outside
the subcontract's defined scope. What is the most appropriate management
response?
A. Allow the work and resolve payment later
B. Immediately terminate the subcontractor
C. Ignore the additional work
D. Review the scope and document any authorized changes
Answer: D
Rationale: Reviewing contractual scope and documenting authorized changes
prevents unauthorized costs while preserving an orderly process for legitimate
modifications.
7. A project manager wants to determine whether a project is progressing
according to the approved schedule. Which document provides the most useful
comparison?
A. Original baseline schedule
B. Employee handbook
C. Equipment inventory
D. General ledger
, Answer: A
Rationale: Comparing current progress with the approved baseline schedule helps
identify deviations, delays, critical activities, and necessary corrective measures.
8. A contractor estimates $400,000 in direct costs and applies a 12% markup for
overhead. What amount does the 12% markup represent?
A. $36,000
B. $42,000
C. $48,000
D. $52,000
Answer: C
Rationale: Multiplying $400,000 by 0.12 gives $48,000, representing the amount
added for the stated overhead markup.
9. Why should a contractor maintain detailed records supporting requests for
payment on a large construction project?
A. To eliminate the need for inspections
B. To support earned amounts and resolve potential disputes
C. To avoid preparing project schedules
D. To guarantee immediate payment
Answer: B
Rationale: Detailed records demonstrate completed work, approved changes,
costs, and supporting documentation when payment amounts are questioned.
10. A contractor discovers that a critical material has a twelve-week delivery
period when the schedule allows only six weeks. What should happen first?
