TCM 226- Exam 2 Questions and
Answers
What can violation of the ethical provisions of a profession lead to? - Answer-Loss of your license
What is a progress payment? - Answer-Payment for a job as it goes along, most projects pay monthly
The intervals at which payments are made are established in the contract, what are three different time
periods they can be made in? - Answer-1. At the end of the job
2. Weekly or Bi-weekly (on bigger jobs where more money is spent)
3. Provisional Payment (pre-determined amounts when certain milestones are achieved)
For Lump sum work, what are progress payments based off of? - Answer-the schedule of values
For Unit Price Contracts, what are progress payments based off of? - Answer-Actual quantities of work
done multiplied by your unit prices from bid
For Cos-Plus Fee Contracts(T&M), what are progress payments based off of? - Answer-Actual Labor,
Equipment, and Material Cost Plus a pre-arranged fixed or percentage fee
, Who is typically responsible for certifying the amount of work done? - Answer-The A/E
What are the 3 methods for measuring/quantifying work?(per contract type) - Answer-Lump Sum-
Based on % complete values in schedule of values
Unit Price- Quantities are surveyed in the fields
Cost-Plus fee- based upon receipts for material and equipment and on payroll records
What are the three ways to incorporate GCs and Fee into the schedule of values? - Answer-1. As a
separate line item
2. As a percentage of each line item's portion of the project cost
3. as a "random" percentage to enable some front end loading
Who typically pays for materials stored on site? - Answer-Owners, they rarely pay for materials off site
What are progress payments and schedule of values used to monitor? - Answer-Cash Flow
What is retainage? - Answer-portion of the agreed upon contract price that is withheld until the work is
substantially complete
What is a joint check agreement? - Answer-It is typically requested by vendors and 3rd tier subs to
ensure that they are paid directly by the GC
What is the normal % Retention? - Answer-1. 5% for the entire job
2. 10% for the first 50% then nothing until the end of the job
What are the four lien management terms/concepts? - Answer-Materialman's notice- usually required
by law to preserve lien rights
Answers
What can violation of the ethical provisions of a profession lead to? - Answer-Loss of your license
What is a progress payment? - Answer-Payment for a job as it goes along, most projects pay monthly
The intervals at which payments are made are established in the contract, what are three different time
periods they can be made in? - Answer-1. At the end of the job
2. Weekly or Bi-weekly (on bigger jobs where more money is spent)
3. Provisional Payment (pre-determined amounts when certain milestones are achieved)
For Lump sum work, what are progress payments based off of? - Answer-the schedule of values
For Unit Price Contracts, what are progress payments based off of? - Answer-Actual quantities of work
done multiplied by your unit prices from bid
For Cos-Plus Fee Contracts(T&M), what are progress payments based off of? - Answer-Actual Labor,
Equipment, and Material Cost Plus a pre-arranged fixed or percentage fee
, Who is typically responsible for certifying the amount of work done? - Answer-The A/E
What are the 3 methods for measuring/quantifying work?(per contract type) - Answer-Lump Sum-
Based on % complete values in schedule of values
Unit Price- Quantities are surveyed in the fields
Cost-Plus fee- based upon receipts for material and equipment and on payroll records
What are the three ways to incorporate GCs and Fee into the schedule of values? - Answer-1. As a
separate line item
2. As a percentage of each line item's portion of the project cost
3. as a "random" percentage to enable some front end loading
Who typically pays for materials stored on site? - Answer-Owners, they rarely pay for materials off site
What are progress payments and schedule of values used to monitor? - Answer-Cash Flow
What is retainage? - Answer-portion of the agreed upon contract price that is withheld until the work is
substantially complete
What is a joint check agreement? - Answer-It is typically requested by vendors and 3rd tier subs to
ensure that they are paid directly by the GC
What is the normal % Retention? - Answer-1. 5% for the entire job
2. 10% for the first 50% then nothing until the end of the job
What are the four lien management terms/concepts? - Answer-Materialman's notice- usually required
by law to preserve lien rights
