Contractors Business/Law Exam questions with correct answers

If an employer's Federal Payroll Tax liability is $1000 how may they pay taxes? CORRECT ANSWER quarterly How many employees does it take for the Fair Labor Act to be applied? CORRECT ANSWER 1 What accounting method records income when the service occurs and expense when they are incurred? CORRECT ANSWER Accrual Method What do the General Conditions of a contract do? CORRECT ANSWER Outline roles of the owner, architect, and engineer. You are purchasing an insurance policy with a monthly premium of $300. If you implement a safety program you can save 10% on the cost of the policy. The safety program costs $400 to start and $15 a month to maintain it. What would be the net difference in cost over three year period with a safety program? CORRECT ANSWER Net saving of $140 Written construction contract change order should include a description of the modification to be made, any change in contract time and CORRECT ANSWER The change in the contract dollar amount Which of the following is a written agreement between the owner and contractor to change the contract? CORRECT ANSWER change order What term identifies money withheld from pro