ADVANCED Contracting Exam Questions and Answers (SCORED A)

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... - ANSWER-between $35,000 and $40,000 A contractor agrees to unit price contract to Product A for $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 should the contractor be paid for producing 27 units of Product A, 56 units of Product B and 78 units of Product C? - ANSWER-Between $40,000 and $45,000 A contract calls for liquidated damages of $500 per day. The project completed five days late because it was delayed by rain. The completion would have been ten days earlier if it were not for the rain delay. There was a $500 bonus per day for the contractor for early completion. No extension of time was requested or granted. How much does the contractor earn or owe? - ANSWER-Owes $2,500 in Liquidated damages A job has a bid price of 165,000 after direct costs and overhead are factored. What will the final bid be if the profit markup is 11.5%? - ANSWER-$186,440 Given the following information, is it advantageous to purchase or rent this particular piece of equipment if it has 3 useful years? - ANSWER-Purchasing saves $3,160 In a cost plus contract, the contractor receives direct costs for labor and materials 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 materials is $60,000 and the work is done 5 days early. How much is the contractor due? - ANSWER-Between $90,000 and $95,000 What is the bid for the following when there is a combined profit and overhead of 30%? - 10 units at $75 each - 20 units at $200 each - 30 units at $290 each - ANSWER-$19,214 A firm has current assets of $68,000, fixed assets of $162,000, current liabilities of $45,000, and long term liabilities of $72,000. The firm's financial position would be considered to be... - ANSWER-Adequate for taking on a major project