VIRGINIA CONTRACTORS STUDY - A
& B LICENSE (CALCULATION PART)
EXAM WITH COMPLETE SOLUTIONS
The owner requests changes which will cost the contractor $2,500 in labor and
materials and $700 in overhead costs. With the change, the contractor would be
relieved of $1,000 in labor costs and $280 in overhead costs from the original contract.
The original bid included profit of 10% of all costs. The contractor wants to make a profit
of 10% of all costs on the changes. The amount of the change order should included a
request of an additional.
A. $1820
B. $2,112
C. $3,200
D. $3,520 -ANSB. $2,112
A lump sum contract on a project has a total contract price of $200,000. Retainage has
been held back at 10%. The contractor has received progress payments of 90% of the
project. The contractor submits a request for the final payment for the now completed
project. The final payment amount should be for
A. less than 25,000$
b. between 25,000$ & 35,000$
c. between 35,000$ & 40,000$
d. more than 40,000$ -ANSc. between 35,000$ & 40,000$
A contractor agrees to unit price contract to Product A fir $50 per unit, product B for $50
per unit, and product C for $375 per unit. The contractor is also to add 30% for
overhead and profit. How much the contractor should be paid for producing 27 units of
product A, 56 units of product B and 78 units of product C?
a. less than 40,000$
b. between 40,000$ & 45,000$
c. between 45,000 & 50,000$
d. more than 50,000$ -ANSb. between 40,000$ & 45,000$
A contract calls for liquidated damage of 500$ per day. The project completed five days
late because it was delayed by rain. The completion would have been 10 days earlier if
it were not for the rain delay. There was a 500$ bonus per day for the contractor early
completion. No extension of time was requested or granted. How much does the
contractor earn or owe?
, a. owes 2,500 in liquidated damage
b. owes 500 in liquidated damage
c. is due a 2,500 bonus from the owner
d. is due a 500 bonus from the owner -ANS
A job has a price of 165,000 after direct costs and overhead are factored. What will the
final bid be if the profit markup is 11.5%
a. 186,440
b. 183,975
c. 179,545
d. 189,874 -ANSa. 186,440
Give the following information, is it advantageous to purchase or rent this particular
piece of equipment if it has 3 useful years?
purchase rent
Initial cost 10,000 0
rental 0 550
salvage value 2,0000 0
insurance 40 0
operating costs 200 0
a. renting saves 840
b. renting saves 2,280
c. purchasing saves 840
d. purchasing saves 3,160 -ANSd. purchasing saves 3,160
In cost plus contract, the contractor receives direct costs for labor and material with a
40% markup, a 10% bonus if the total cost to the owner is less than 100,000 and a 500
bonus for each day that the work is completed early. The final cost of labor and material
is 60,000 and the work is done 5 days early. How much is the contractor due?
a. less than 85,000
b. between 85,000 & 90,000
c. between 90,000 & 95,000
d. greater than 95,000 -ANSc. between 90,000 & 95,000
What is the bid for the following when there is a combine profit and overhead of 30%?
-10 units at 75 each
-20 units at 200 each
-30 units at 290 each
& B LICENSE (CALCULATION PART)
EXAM WITH COMPLETE SOLUTIONS
The owner requests changes which will cost the contractor $2,500 in labor and
materials and $700 in overhead costs. With the change, the contractor would be
relieved of $1,000 in labor costs and $280 in overhead costs from the original contract.
The original bid included profit of 10% of all costs. The contractor wants to make a profit
of 10% of all costs on the changes. The amount of the change order should included a
request of an additional.
A. $1820
B. $2,112
C. $3,200
D. $3,520 -ANSB. $2,112
A lump sum contract on a project has a total contract price of $200,000. Retainage has
been held back at 10%. The contractor has received progress payments of 90% of the
project. The contractor submits a request for the final payment for the now completed
project. The final payment amount should be for
A. less than 25,000$
b. between 25,000$ & 35,000$
c. between 35,000$ & 40,000$
d. more than 40,000$ -ANSc. between 35,000$ & 40,000$
A contractor agrees to unit price contract to Product A fir $50 per unit, product B for $50
per unit, and product C for $375 per unit. The contractor is also to add 30% for
overhead and profit. How much the contractor should be paid for producing 27 units of
product A, 56 units of product B and 78 units of product C?
a. less than 40,000$
b. between 40,000$ & 45,000$
c. between 45,000 & 50,000$
d. more than 50,000$ -ANSb. between 40,000$ & 45,000$
A contract calls for liquidated damage of 500$ per day. The project completed five days
late because it was delayed by rain. The completion would have been 10 days earlier if
it were not for the rain delay. There was a 500$ bonus per day for the contractor early
completion. No extension of time was requested or granted. How much does the
contractor earn or owe?
, a. owes 2,500 in liquidated damage
b. owes 500 in liquidated damage
c. is due a 2,500 bonus from the owner
d. is due a 500 bonus from the owner -ANS
A job has a price of 165,000 after direct costs and overhead are factored. What will the
final bid be if the profit markup is 11.5%
a. 186,440
b. 183,975
c. 179,545
d. 189,874 -ANSa. 186,440
Give the following information, is it advantageous to purchase or rent this particular
piece of equipment if it has 3 useful years?
purchase rent
Initial cost 10,000 0
rental 0 550
salvage value 2,0000 0
insurance 40 0
operating costs 200 0
a. renting saves 840
b. renting saves 2,280
c. purchasing saves 840
d. purchasing saves 3,160 -ANSd. purchasing saves 3,160
In cost plus contract, the contractor receives direct costs for labor and material with a
40% markup, a 10% bonus if the total cost to the owner is less than 100,000 and a 500
bonus for each day that the work is completed early. The final cost of labor and material
is 60,000 and the work is done 5 days early. How much is the contractor due?
a. less than 85,000
b. between 85,000 & 90,000
c. between 90,000 & 95,000
d. greater than 95,000 -ANSc. between 90,000 & 95,000
What is the bid for the following when there is a combine profit and overhead of 30%?
-10 units at 75 each
-20 units at 200 each
-30 units at 290 each
