NASCLA Contractors Exam Solution Manual Already Passed

NASCLA Contractors Exam Solution Manual Already Passed 3 elements of a business plan - Answers -cover page -executive summary -company summary -products and services -market analysis -marketing strategy -financial plan advantages of sole proprietorship - Answers -minimal legal restrictions -simple ownership form -low start up costs -sole ownership of profits -freedom in decision making process disadvantages of sole proprietorship - Answers -unlimited personal liability -less available capital -possible difficulty obtaining long-term financing -dissolution of the business on the even of the owner's death who has limited liability in the company? - Answers limited partners advantages of a general partnership - Answers -ease of formation -direct profit rewards -larger management base than that of a sole proprietorship disadvantages of a general partnership - Answers -unlimited personal liability of general partners -multiple decision makers -limited life of the business -changes of partners or partnership agreement may be difficult -partnership dissolves in the event of the death of a general partner bid documents - Answers -invitation to bid -bid instructions -bid forms -supplements what is an invitation to bid - Answers gives a brief overview of the project, deadlines, and general requirements bid instructions - Answers contain specifics of how the bis should be completed and submitted bid forms - Answers bid sheet bid schedule bidder's questionnaire on the experience financial responsibility and capability copy of the contract supplements - Answers includes all items important to the overall bid process such as property and soil analysis what is the estimating checklist helpful for? - Answers when setting up your estimating framework to make sure that you have accounted for all materials and labor what is the most effective estimating method? - Answers quantity take off method what is labor burden - Answers (30% of labor cost) medicare and social security federal unemployment insurance worker's compensation liability insurance state unemployment insurance company benefits (health insurance, vacations) what are indirect costs - Answers small tools and pickup trucks what are allowances - Answers items not specified in the project plans such as carpeting, fixtures, and lighting) what are contingencies - Answers percentages added to the estimate to protect the contractor if an unanticipated problem occurs what is project overhead - Answers cost that covers items necessary to complete the project but not directly associated with the labor and materials examples of project overhead - Answers bonds, temporary storage, temporary office, security guard, utilities, dumpsters, and portable toilets what is company overhead - Answers the cost of doing business (expenses necessary to keep the business running) examples of company overhead - Answers office rent accounting fees taxes telephone legal fees administrative labor what is mark up - Answers applied to the direct cost of the project what happens if mark up is too low - Answers you may not cover the costs for project which may cause you to break even or even lose money on the porject what is a conceptual estimate - Answers generally prepared by the architect using cost models from previous projects what is the benefit of a job cost recording system - Answers helpful in the estimating and project management what are the 4 required elements of a contract - Answers offer and acceptance consideration competent parties legal purpose breach of contract occurs when a party... - Answers refuses to perform the contract performs an act prohibited by the contract prevents the other party from performing its obligations idemnification - Answers absolves the indemnified party from any payment for losses and damages incurred by a third party indemnification clauses must be... - Answers examined carefully to ensure the proper liability is distributed between the contractor and the owner 3 types of construction contracts - Answers lump sum unit price cost plus lump sum contract - Answers contractor agrees to complete the project for a predetermined, specified price unit-price contract - Answers used for jobs where the extent of work cannot be fully determined or the actual quantities of required items cannot be accurately calculated in advance cost plus contract - Answers contractor is reimbursed for the actual cost of labor and materials and is paid a markup fee for overhead and profit a written agreement between the owner and contractor to change the contract - Answers change order why are oral agreements bad? - Answers not a good way to do business! get it in writing legal interpretation - Answers if the contract cannot be clarified based on this method, the interpretation will go against the party who wrote it 3 types of scheduling methods - Answers calendar bar chart critical path dates, delivery dates, payment schedules and employee vacations are what type of scheduling? - Answers calendar what is the main weakness of bar chart and calendar scheduling? - Answers do not show the interdependencies of activities shows the activity duration and sequence of tasks to be completed - Answers bar chart scheduling shows the relationship between tasks - Answers critical path method of scheduling