Virginia Exam Advanced Questions &
Answers (GRADED A+)
In the previous year, a company had revenues of $500,000, project overhead of
$40,000 and company overhead of $75,000. The company expects the percentage
for project and company overhead to remain the same for the current year. The
company desires to make a 10% profit on a project it is bidding. The project would
have $80,000 in direct costs. What should the bid price be? - ANSWER-Between
$110,000 and $120,000.
What is the name of the process when a facilitator meets with the major participants
in a project, prior to the commencement of the project, to identify the shared goals of
all participants? - ANSWER-Partnering.
A cost plus contract calls for the contractor to receive direct costs for labor and
materials, and a markup of 20% of direct costs. The contractor is also to receive a
bonus of 15% of savings if total cost to the owner is less than $80,000, and a bonus
of $1,000 per day if the project is completed early. Final costs for direct labor and
materials are $60,000. The project is completed 3 days early. What is the total
amount due the contractor? - ANSWER-Between $75,001 and $80,000.
The owner requests for changes which will cost the contractor $15,000 in labor and
materials and $2,250 in overhead costs. With the change, the contractor would be
relieved of $18,000 in labor and materials costs, and $2,400 in overhead costs from
the original contract. The original bid included profit of 20% of all costs. The
contractor wants to make a profit of 20% of all costs on the changes. The adjusted
contract price for the change order should be - ANSWER-a decrease of $3,780.
A lump sum contract on a project has a total contract price of $160,000. Retainage
has been held back at 10%. The contractor has received progress payments for 75%
of the project. The contractor submits a request for final payment for the now
completed project. The final payment amount should be for - ANSWER-more than
$50,000.
A permit is obtained on Friday, May 1. The materials are to be delivered May 8. The
materials are needed when labor begins on May 11. It is estimated that 15 days of
labor are REQUIRED. The crew will work every day, including weekends and
holidays. The project is scheduled to be completed on June 8. How many float days
are available for the labor for this project? - ANSWER-13
Which of the following would typically be covered by a contractor's comprehensive
general liability insurance policy? - ANSWER-Damage to adjoining property from a
crane accident.
Answers (GRADED A+)
In the previous year, a company had revenues of $500,000, project overhead of
$40,000 and company overhead of $75,000. The company expects the percentage
for project and company overhead to remain the same for the current year. The
company desires to make a 10% profit on a project it is bidding. The project would
have $80,000 in direct costs. What should the bid price be? - ANSWER-Between
$110,000 and $120,000.
What is the name of the process when a facilitator meets with the major participants
in a project, prior to the commencement of the project, to identify the shared goals of
all participants? - ANSWER-Partnering.
A cost plus contract calls for the contractor to receive direct costs for labor and
materials, and a markup of 20% of direct costs. The contractor is also to receive a
bonus of 15% of savings if total cost to the owner is less than $80,000, and a bonus
of $1,000 per day if the project is completed early. Final costs for direct labor and
materials are $60,000. The project is completed 3 days early. What is the total
amount due the contractor? - ANSWER-Between $75,001 and $80,000.
The owner requests for changes which will cost the contractor $15,000 in labor and
materials and $2,250 in overhead costs. With the change, the contractor would be
relieved of $18,000 in labor and materials costs, and $2,400 in overhead costs from
the original contract. The original bid included profit of 20% of all costs. The
contractor wants to make a profit of 20% of all costs on the changes. The adjusted
contract price for the change order should be - ANSWER-a decrease of $3,780.
A lump sum contract on a project has a total contract price of $160,000. Retainage
has been held back at 10%. The contractor has received progress payments for 75%
of the project. The contractor submits a request for final payment for the now
completed project. The final payment amount should be for - ANSWER-more than
$50,000.
A permit is obtained on Friday, May 1. The materials are to be delivered May 8. The
materials are needed when labor begins on May 11. It is estimated that 15 days of
labor are REQUIRED. The crew will work every day, including weekends and
holidays. The project is scheduled to be completed on June 8. How many float days
are available for the labor for this project? - ANSWER-13
Which of the following would typically be covered by a contractor's comprehensive
general liability insurance policy? - ANSWER-Damage to adjoining property from a
crane accident.
