TCM 324 TEST 2 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Direct Equipment Costs
Answer:
-pump truck
-rough terrain fork lift
Question:
2. Indirect Equipment Costs
Answer:
-bobcat
-tower crane
Question:
3. Direct labor is performed by who?
Answer:
By a GC's own crew
Question:
4. Why is self-performed work risky?
Answer:
Efficiency, liability, etc.
Question:
5. What do labor costs include?
Answer:
-Base rate
-Worker Comp
-Social Security
-Unemployment Tax
-Public Liability and Property Damage
-Fringe Benefits (paid vacation, 401k, medical insurance, etc.)
Question:
6. Union Wage
Answer:
Union: negotiated by labor contracts between local union and construction contractor's management
Question:
7. Open-Shop Wage
Answer:
Negotiated by employee and employer
, Question:
8. Prevailing Wage
Answer:
"Established for federal and state government funded jobs" (Peurifoy, 2002, page
81).
-Davis-Bacon Act
-Became law in 1931
Question:
9. Applying Labor Rates
Answer:
-Open shop projects, everyone may be making a different rate.
-Prevailing wage projects will include foreman, journeyman, apprentice.
Question:
10. Composite Wage
Answer:
-R.S. Means has different "crews" for different types of work.
-Crews start on page 669 (2011 R.S. Means)
-A C-10 crew (page 690) has 1 laborer and 2 cement finishers.
-The composite wage is the hourly rate for the entire crew with equipment.
Question:
11. Social Security Tax
Answer:
(FICA) Provides retirement benefits to persons who became eligible
- the employer pays 7.65% of each employee gross earnings
- the empolyee matches this through the employer
Question:
12. unemployment compensation tax
Answer:
6% on the first $7,000 of wages. To cover periods of unemployment
-Paid by the contractor
-Missouri - If you are eligible to receive unemployment, your weekly benefit rate in Missouri will be 4%
of your average quarterly wages during the two highest paid quarter of the base period. The maximum
weekly benefit amount is $320. You may receive benefits for a maximum of 20 weeks.
Question:
13. Workers compensation insurance
Answer:
-Workers compensation rate is overseen by state and ranges from $10 per $100 of wages to $30 per $100.
-A low incident rate (EMR) is rewarded.
Question:
14. Public Liability and Property damage
CORRECT ANSWERS
Question:
1. Direct Equipment Costs
Answer:
-pump truck
-rough terrain fork lift
Question:
2. Indirect Equipment Costs
Answer:
-bobcat
-tower crane
Question:
3. Direct labor is performed by who?
Answer:
By a GC's own crew
Question:
4. Why is self-performed work risky?
Answer:
Efficiency, liability, etc.
Question:
5. What do labor costs include?
Answer:
-Base rate
-Worker Comp
-Social Security
-Unemployment Tax
-Public Liability and Property Damage
-Fringe Benefits (paid vacation, 401k, medical insurance, etc.)
Question:
6. Union Wage
Answer:
Union: negotiated by labor contracts between local union and construction contractor's management
Question:
7. Open-Shop Wage
Answer:
Negotiated by employee and employer
, Question:
8. Prevailing Wage
Answer:
"Established for federal and state government funded jobs" (Peurifoy, 2002, page
81).
-Davis-Bacon Act
-Became law in 1931
Question:
9. Applying Labor Rates
Answer:
-Open shop projects, everyone may be making a different rate.
-Prevailing wage projects will include foreman, journeyman, apprentice.
Question:
10. Composite Wage
Answer:
-R.S. Means has different "crews" for different types of work.
-Crews start on page 669 (2011 R.S. Means)
-A C-10 crew (page 690) has 1 laborer and 2 cement finishers.
-The composite wage is the hourly rate for the entire crew with equipment.
Question:
11. Social Security Tax
Answer:
(FICA) Provides retirement benefits to persons who became eligible
- the employer pays 7.65% of each employee gross earnings
- the empolyee matches this through the employer
Question:
12. unemployment compensation tax
Answer:
6% on the first $7,000 of wages. To cover periods of unemployment
-Paid by the contractor
-Missouri - If you are eligible to receive unemployment, your weekly benefit rate in Missouri will be 4%
of your average quarterly wages during the two highest paid quarter of the base period. The maximum
weekly benefit amount is $320. You may receive benefits for a maximum of 20 weeks.
Question:
13. Workers compensation insurance
Answer:
-Workers compensation rate is overseen by state and ranges from $10 per $100 of wages to $30 per $100.
-A low incident rate (EMR) is rewarded.
Question:
14. Public Liability and Property damage
