NASCLA Contractor's Guide Questions With Complete Solutions

The standard industry mark-up is? correct answer: 15% - Bus Law & Proj Mgmt pg 7-7 Which of the following is important to consider in order to avoid inaccuracies when making an accurate project estimate? A) Units of measure B) Time involved C) Overhead Costs D) Productivity time correct answer: A) Units of measure - Bus Law & Proj Mgmt pg 6-8 A crucial drawback of a ________ is double taxation. correct answer: C Corp Class B fires are flammable liquids and require a special type of extinguisher to control them. Which of the following are considered Class B Extinguishers? A) Foam B) Carbon Dioxide C) Dry chemical D) All of the above correct answer: D) - OSHA 1926.150 Table F-, pg 213 Form _______ is mandatory to be assigned as an S Corporation. correct answer: Form 2553, know as the sub chapter S election. Filing this form can be used to convert a C Corp to and S Corp - Bus Law & Proj Mgmt pg 2-7 _________ insurance will protect against movable machinery left at the location or while being transported. correct answer: Equipment Floater Class ____ fires are considered ordinary combustibles. A) A B) B C) C D) D correct answer: A) Class A - OSHA 1926.150 Table F-1, pg 213 A _____ bond promises the person building will complete the job for the amount quoted, will sign the agreement and will provide _____ and _____ bond. correct answer: Bid bond, Performance and Payment - Bus Law & Proj Mgmt pg 4-8 A ______ bond guarantees the owner that the contract work will be completed according to its terms including price and time. correct answer: Performance bond - Bus Law & Proj Mgmt pg 4-8 The Miller Act calls for ______ and ______ bonds for