VIRGINIA CONTRACTORS STUDY - A
& B LICENSE
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 - ✔✔ correct answer B. $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$ - ✔✔ correct answer c. 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$ - ✔✔ correct answer b. 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
, VIRGINIA CONTRACTORS STUDY - A
& B LICENSE
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 - ✔✔ correct answer
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 - ✔✔ correct answer a. 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
& B LICENSE
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 - ✔✔ correct answer B. $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$ - ✔✔ correct answer c. 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$ - ✔✔ correct answer b. 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
, VIRGINIA CONTRACTORS STUDY - A
& B LICENSE
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 - ✔✔ correct answer
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 - ✔✔ correct answer a. 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
