NORTH CAROLINA GENERAL CONTRACTOR/NASCLA EXAM
2026/2027 | COMPLETE QUESTIONS AND ANSWERS (VERIFIED
ANSWERS) | EXAM PREP | COMPREHENSIVE EXAM GUIDE
2026&2027
1. A general contractor is reviewing a project before submitting a bid. Which document
should be examined first to determine the overall scope and contractual requirements of
the project?
A. Material safety data sheet
B. Project plans and specifications
C. Employee time sheet
D. Equipment maintenance log
Answer: B
The plans and specifications establish the project's scope, materials, performance
requirements, and many contractual obligations.
2. A contractor discovers that the quantity of concrete shown on the drawings appears
substantially lower than the quantity required by the dimensions shown. What should the
contractor do before submitting the bid?
A. Ignore the discrepancy
B. Use the lower quantity
C. Request clarification and reconcile the documents
D. Automatically double the quantity
Answer: C
Conflicting information should be clarified before pricing so the contractor can establish an
accurate and defensible bid.
3. Which business practice provides the strongest protection against disputes concerning
changes to the original scope of work?
A. Verbal approval from the superintendent
B. Written change documentation signed by authorized parties
C. Verbal agreement with the owner
D. Contractor notes kept privately
Answer: B
Written, authorized change documentation establishes what changed, who approved it, and
how price and schedule are affected.
,4. A contractor wants to determine whether a project is financially viable before
committing resources. Which calculation is most useful initially?
A. Gross profit and projected project costs
B. Number of employees only
C. Equipment age
D. Office rent only
Answer: A
Comparing expected revenue with direct and indirect project costs provides a foundation for
evaluating profitability.
5. Which financial statement primarily reports 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
A balance sheet presents the company's financial position at a particular date.
6. A contractor has substantial profits on paper but repeatedly struggles to pay suppliers
on time. Which issue is most likely responsible?
A. Excessive depreciation
B. Poor cash-flow management
C. Excessive employee training
D. Low equipment utilization
Answer: B
Profitability and cash availability are different. Poor timing of collections and payments can
create serious cash-flow problems even when a company is profitable.
7. Which document is most useful for comparing the actual cost of labor and materials with
the amount originally budgeted for a project?
A. Job-cost report
B. Employee handbook
C. Safety data sheet
D. Corporate charter
Answer: A
A job-cost report allows management to identify cost variances and determine whether the
project is remaining within budget.
,8. A contractor receives a bid from a subcontractor that is significantly lower than every
competing bid. What is the best first action?
A. Accept it immediately
B. Assume the subcontractor found a better supplier
C. Verify the scope, quantities, exclusions, and pricing
D. Increase the subcontractor's price
Answer: C
An unusually low bid may contain omissions or misunderstandings. Scope and exclusions
should be confirmed before relying on it.
9. Which estimating practice most directly reduces the risk of omitting required work?
A. Estimating from memory
B. Using a detailed quantity takeoff
C. Using only the owner's verbal description
D. Selecting a round-number allowance
Answer: B
A detailed quantity takeoff systematically identifies required materials, labor, and work
activities.
10. During estimating, a contractor identifies a material whose price is unusually volatile.
What is the best approach?
A. Ignore price volatility
B. Include appropriate pricing protection or obtain a firm supplier quotation
C. Remove the material from the estimate
D. Assume the lowest historical price
Answer: B
Volatile material costs should be addressed through current quotations, escalation provisions,
allowances, or other appropriate contractual protection.
11. Which factor should generally be included when calculating labor burden?
A. Only the employee's hourly wage
B. Wage plus applicable payroll taxes and employee-related costs
C. Only overtime wages
D. Only travel expenses
Answer: B
Labor burden includes costs beyond direct wages, such as employer payroll taxes, insurance,
benefits, and other applicable employment costs.
, 12. A contractor estimates direct project costs at $400,000 and expects $80,000 in overhead
and profit. What is the estimated total contract amount if the $80,000 is added to direct
cost?
A. $320,000
B. $400,000
C. $480,000
D. $520,000
Answer: C
Adding $80,000 to $400,000 produces a total of $480,000.
13. A contractor discovers that a proposed project requires specialized work outside the
company's normal expertise. What is the most responsible response?
A. Bid without investigating
B. Evaluate qualifications and consider a qualified specialty subcontractor
C. Assign the work to the newest employee
D. Omit the work from the bid
Answer: B
Specialized work should be performed by appropriately qualified personnel or subcontractors
so quality, safety, and compliance requirements can be met.
14. Which contract provision identifies the amount the owner must pay for completed
work?
A. Payment terms
B. Safety plan
C. Equipment schedule
D. Employee classification
Answer: A
Payment terms establish when and how compensation is to be made.
15. An owner asks a contractor to begin substantial additional work immediately but says
the written change order will be prepared later. What is the safest business response?
A. Proceed without documentation
B. Document the authorization and establish price and schedule effects before proceeding when
practicable
C. Refuse all changes permanently
D. Bill any amount after completion
Answer: B
2026/2027 | COMPLETE QUESTIONS AND ANSWERS (VERIFIED
ANSWERS) | EXAM PREP | COMPREHENSIVE EXAM GUIDE
2026&2027
1. A general contractor is reviewing a project before submitting a bid. Which document
should be examined first to determine the overall scope and contractual requirements of
the project?
A. Material safety data sheet
B. Project plans and specifications
C. Employee time sheet
D. Equipment maintenance log
Answer: B
The plans and specifications establish the project's scope, materials, performance
requirements, and many contractual obligations.
2. A contractor discovers that the quantity of concrete shown on the drawings appears
substantially lower than the quantity required by the dimensions shown. What should the
contractor do before submitting the bid?
A. Ignore the discrepancy
B. Use the lower quantity
C. Request clarification and reconcile the documents
D. Automatically double the quantity
Answer: C
Conflicting information should be clarified before pricing so the contractor can establish an
accurate and defensible bid.
3. Which business practice provides the strongest protection against disputes concerning
changes to the original scope of work?
A. Verbal approval from the superintendent
B. Written change documentation signed by authorized parties
C. Verbal agreement with the owner
D. Contractor notes kept privately
Answer: B
Written, authorized change documentation establishes what changed, who approved it, and
how price and schedule are affected.
,4. A contractor wants to determine whether a project is financially viable before
committing resources. Which calculation is most useful initially?
A. Gross profit and projected project costs
B. Number of employees only
C. Equipment age
D. Office rent only
Answer: A
Comparing expected revenue with direct and indirect project costs provides a foundation for
evaluating profitability.
5. Which financial statement primarily reports 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
A balance sheet presents the company's financial position at a particular date.
6. A contractor has substantial profits on paper but repeatedly struggles to pay suppliers
on time. Which issue is most likely responsible?
A. Excessive depreciation
B. Poor cash-flow management
C. Excessive employee training
D. Low equipment utilization
Answer: B
Profitability and cash availability are different. Poor timing of collections and payments can
create serious cash-flow problems even when a company is profitable.
7. Which document is most useful for comparing the actual cost of labor and materials with
the amount originally budgeted for a project?
A. Job-cost report
B. Employee handbook
C. Safety data sheet
D. Corporate charter
Answer: A
A job-cost report allows management to identify cost variances and determine whether the
project is remaining within budget.
,8. A contractor receives a bid from a subcontractor that is significantly lower than every
competing bid. What is the best first action?
A. Accept it immediately
B. Assume the subcontractor found a better supplier
C. Verify the scope, quantities, exclusions, and pricing
D. Increase the subcontractor's price
Answer: C
An unusually low bid may contain omissions or misunderstandings. Scope and exclusions
should be confirmed before relying on it.
9. Which estimating practice most directly reduces the risk of omitting required work?
A. Estimating from memory
B. Using a detailed quantity takeoff
C. Using only the owner's verbal description
D. Selecting a round-number allowance
Answer: B
A detailed quantity takeoff systematically identifies required materials, labor, and work
activities.
10. During estimating, a contractor identifies a material whose price is unusually volatile.
What is the best approach?
A. Ignore price volatility
B. Include appropriate pricing protection or obtain a firm supplier quotation
C. Remove the material from the estimate
D. Assume the lowest historical price
Answer: B
Volatile material costs should be addressed through current quotations, escalation provisions,
allowances, or other appropriate contractual protection.
11. Which factor should generally be included when calculating labor burden?
A. Only the employee's hourly wage
B. Wage plus applicable payroll taxes and employee-related costs
C. Only overtime wages
D. Only travel expenses
Answer: B
Labor burden includes costs beyond direct wages, such as employer payroll taxes, insurance,
benefits, and other applicable employment costs.
, 12. A contractor estimates direct project costs at $400,000 and expects $80,000 in overhead
and profit. What is the estimated total contract amount if the $80,000 is added to direct
cost?
A. $320,000
B. $400,000
C. $480,000
D. $520,000
Answer: C
Adding $80,000 to $400,000 produces a total of $480,000.
13. A contractor discovers that a proposed project requires specialized work outside the
company's normal expertise. What is the most responsible response?
A. Bid without investigating
B. Evaluate qualifications and consider a qualified specialty subcontractor
C. Assign the work to the newest employee
D. Omit the work from the bid
Answer: B
Specialized work should be performed by appropriately qualified personnel or subcontractors
so quality, safety, and compliance requirements can be met.
14. Which contract provision identifies the amount the owner must pay for completed
work?
A. Payment terms
B. Safety plan
C. Equipment schedule
D. Employee classification
Answer: A
Payment terms establish when and how compensation is to be made.
15. An owner asks a contractor to begin substantial additional work immediately but says
the written change order will be prepared later. What is the safest business response?
A. Proceed without documentation
B. Document the authorization and establish price and schedule effects before proceeding when
practicable
C. Refuse all changes permanently
D. Bill any amount after completion
Answer: B
