contractor test Flashcards by Marcos Geroli

If changes are made to a bid package before it is due, which of the following documents is issued?

addenda

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A price estimate for performing a job has been compiled and the total costs of the project are $775,000. What will be the total bid if the company requires a 23% MARKUP on all costs of the project?

953,250

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A carpenter and a helper install 1,200 lineal feet of siding during an 8 hour day. The carpenter is paid $15.50 per hour and the helper $8.00 per hour. What is the labor cost per linear foot?

$0.16c

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What type of bond can be used by the owner to ensure that a contractor can be replaced if said contractor does NOT complete the project?

A performance bond

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Which of the following bonds would be used to protect the owner from subcontractors, suppliers or laborers that were NOT compensated by the contractor?

payment bond

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A business pays its employees every two weeks. During the first week of the pay period, the employee works 30 hours. During the second week the employee works 50 hours. The employee is paid $10 per hour. What are the gross wages for the employee for that pay period?

$850.00

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Which of these question might land an interviewer in trouble?

how old are you?

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How many hours can an employee work during a work week without being paid overtime wages?

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According to the Utah Construction Trades Licensing Act, if a contractor is paid and fails to pay within the required time period, what is the interest rate on amounts due to subcontractors and suppliers who complete and bill for work completed or supplies provided?

1% per month

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In Utah, what MINIMUM public liability insurance coverage amounts must be carried by a contractor?

100,000 for each incident and 300,000 in total

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In Utah, within how many days of receiving a citation for unlawful conduct must the person whom the citation was issued request a hearing to contest the citation or the citation becomes the final order?

20 Business days

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How long is a license valid after being issued to a contractor?

2 Years

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Which of the following is NOT one of the key functions of a business plan?

An advertisement to attract potential vustomers.

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Why is market analysis an important part of a business plan?

it helps you identify your business’s target audience.

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Businesses wishing to make a substitution after a contract has been signed should submit which of the following documents to the client?

a change order

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What is the traditional method of contracting?

Single Prime

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Which document could contain change orders, supplemental conditions, and index of drawings?

Contract Provisions

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How many types of adjusted trial balances are there?

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What type of financial statement provides insight into a companies financial position at a particular point in time?

Balance Sheets

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What is the tentative withholding amount for a married person with 0 allowances making a wage of 1,340?

125

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Which of the following statements is NOT one of the general rules used to determine contingency time?

Task performed by subcontractors require less contingency time.

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In order to prepare a critical path schedule, the project manager must know all of the following EXCEPT:

the free float time

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All of the following are considered management aspects of a project’s life cycle EXCEPT the:

Pre-Bid Conference

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Which of the following is NOT a typical outcome in a workplace that implements workplace safety and health programs?

An increase in employee retraining costs.

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What is the possible penalty for an employer that falsifies OSHA records or reports?

10,000 and or up to six months in jail.

What IRS Tax Form is submitted along with Form 1099?

Form 1096

What is the recommended amount of time to retain employment tax records?

4 Years

What is the deadline to furnish employees with their W-2?

January 31st

In Utah, disregarding exceptions, within how many days of filing written notice to hold and claim a lien must a lien claimant file to enforce the lien?

180

An employer identification number (EIN) is required for all entity types except

Sole Proprietorships

The profits from which type of business are NOT "passed through" to the owners and taxed as ordinary income?

C Corporation

Corporate minutes must be maintained annually for which of the following entity types?

S Corporation

Which of the following is true of a limited partner?

A limited partner's financial responsibility is limited to business liabilities

Which of the following entity types is not subject to self-employment tax?

S corporation

What is the name of the surety law adopted by most states and local governments?

The Miller Act

If a general contractor hires a subcontractor who has no workers compensation policy for part of a project, and an employee of the subcontractor is injured, who is responsible for the injured employee?

The general contractor

If you are remodeling a house that was built before 1978, you must

Provide a lead information sheet to the inhabitant

If a contractor finds asbestos on a remodeling project, they should

have a certified asbestos contractor remove the asbestos

What is the minimum required level of general liability insurance coverage for a Utah contractor?

$100,000 per incident/$300,000 total

There is an accident on a job site. The company's general liability insurance deductible is $2,500 The employee's medical bills are $5,000 Damage to the company's equipment is $2,000 A passerby is injured and incurs medical bills of $1,500 how much will the company's general liability insurance policy pay for the incident?

If a person fails to file a timely preliminary notice, they may not claim a construction lien for construction work the person provides to the project before how many days after the preliminary notice is filed?

A lien claimant shall file an action to enforce a lien within how many days of filing a written notice to hold and claim a lien?

180

Before providing a final lien release to a project owner, the contractor should request which of the following documents from the subcontractors and suppliers?

Final lien releases

Which of the following best defines the "cost principle" in accounting?

All transactions are recorded at cost rather than value

Using the Accrual Basis of accounting, what is the net income for march if:

? 2,500

If a company has: current assets $80,000 fixed assets $75,000 Current liabilities $40,000 Long term liabilities $60,000 what is their working capital?

$40,000

What is a Long-Term or Noncurrent Liability?

A debt that extends longer than 1 year

The percentage of completion method of accounting recognizes revenue and expense during a project based on estimates of the project’s percentage of completion. What is an advantage of this accounting method?

It allows a company to show income over the life of the project.

Cash basis accounting records income:

When cash is received

If a company has: * Current assets $50,000 * Inventory $10,000 * Fixed assets $30,000 * Current liabilities $25,000 * Long term liabilities $20,000 What is the company’s quick ratio?

1.6

The income statement does not include:

expenses

A unit price contract has the following terms: Product #1 = $60 each Product #2 = $100 each Product #3 = $200 each Markup for overhead and profit = 35% How much should the contractor charge for providing 20 of product #1, 40 of product #2, and 30 of product #3?

$15,120

A cost-plus contract has the following terms: * The project owner pays for direct labor and materials costs plus a markup of 30% on those direct costs. * The contractor receives a bonus of $300 per day for each day the project is completed early. * The contractor receives a bonus of 20% of the savings if the total cost including markup is under $80,000. What total amount is due to the contractor if the results of the project are as follows? * Final costs for direct labor and materials are $50,000. * The project is completed 10 days early.

$71,00

A project has a total contract price of $120,000. Retainage has been held back at 5%. The contractor previously completed and received payment for 80% of the work. Now the project is complete. What is the amount of the final payment the contractor should request?

$28,800

Who is responsible for making sure that all the project details are included in the scope of work?

General Contractor

One of the most accurate methods of estimating a job is:

The conceptual estimate method

How much additional money should a change order request in the following situation? * The change costs the contractor an additional $3,500 in labor and materials and overhead. * The change reduces other labor and overhead costs by $1,000. * The contract allows the contractor to markup all costs on a change order 20%.

$3,000

A contractor estimates a project as follows: * Equipment cost = $500 * Direct labor = $4,000 * Material = $5,000 * Project overhead = 30% of direct labor * General overhead = 15% of direct labor and materials The project owner offers to pay $13,000. What is the contractor’s profit or loss?

Profit of $950

When a contractor gets a project owner to reveal the lowest bid they received, it is referred to as:

Bid peddling

A contractor’s best source for estimating the number of hours required for a task, waste factor, and other job costs is:

? Bid sheets?

The person who typically certifies to the owner of a construction project that a percentage of work is complete so the contractor can receive a progress payment is:

The Architect

The superintendent is typically responsible for which of the following?

Coordinating tasks and reviewing punch lists

Calculate float days for the following project: * Contract signed Friday June 2 nd * Materials delivered June 7th * Labor begins Monday June 12th * Scheduled completion date June 30th * Estimated 8 labor days are needed * No overtime or weekend labor is available

6 float days

In the Critical Path scheduling method, the amount of time needed for an individual task is called:

Duration

The best method for keeping inventory low is:

Just in time (JIT) delivery

Which of the following is true of the Gantt scheduling method?

It is based on a bar chart

A contract includes a liquidated damages clause that awards the project owner $500 per day for each day the job exceeds 120 days. The contractor finishes 10 days late and pays out $5,000. How much more can the project owner sue for in actual damages?

Which of the following statements is accurate regarding a warranty item at job completion?

An acceptance which is vague or conditional or changes some of the terms of the original offer is considered:

A counteroffer

The contract document that specifies requirements for site management, material handling, and project management is called:

The general conditions

The required elements of a contract are:

Offer and acceptance, consideration, competent parties, and legal purpose

Which type of bond ensures the owner that a contractor will enter into a contract according to their bid?

Bid bond

A contract includes a liquidated damages clause that awards the project owner $1,000 per day for each day the job exceeds 90 days. It also awards the contractor a bonus of $1,000 per day for each day the job is completed before 90 days. The job is delayed 7 days by weather and is completed on day 94. No extension of time was requested or granted. Which of the following is true?

The contractor owes $4,000 in liquidated damages

How much time does an employer have to complete a form I-9 when a new employee is hired?

Section 1 on the first day of employment; entire form within 3 days

Title VII of the Civil Rights Act of 1963 applies to employers with what number of employees?

15 or more employees

How long does the Fair Labor Standards Act require employers to keep copies of employee wage statements?

3 years

The penalty if an employer does not carry workers compensation insurance is:

$1,000 or 3 times the premium amount

A laborer employee earns $10 per hour. During a 2-week period, the employee works 35 hours in week 1 and 45 hours in week 2. What will their gross pay be for the 2 weeks?

$825

The main purpose of the Fair Labor Standards Act is:

To establishes minimum wage and overtime standards

A Utah employer must report new hires and rehires to the Department of Workforce Services within how many days of hire or rehire?

20 Days

Federal form 941 taxes may be deposited monthly if for the previous 4 quarters a company’s total tax liability for 941 taxes was:

over 50,000

A C Corporation has gross revenue of $120,000 and deductible expenses of $70,000. The corporate tax rate is a flat 21%. What is the corporation’s after-tax profit?

$39,500

The withholding rate for social security is:

6.2%

The due date for a federal tax return falls on Sunday, April 30. The return must be filed by:

Monday, May 1

When must employers with more than 10 employees post OSHA Form 300A?

February 1 – April 30

If there is a fatality or serious injury to a worker, when must the employer notify OSHA?

Within 8 hours

If an employer does not correct a violation cited by OSHA in the time provided, what penalty may be assessed?

Up to $7,000 per day

How many licensees may a qualifier act as the qualifier for without written approval?

If there are multiple liens claimed on the same property, which of the following groups is on equal footing for satisfaction of the lien?

Laborers and materialmen

Which of the following is included in the definition of a contractor in Utah?

A construction consultant

Not making federal payroll tax deposits in a timely manner can result in penalties of:

2% to 100% of the amount due

Utah businesses must pay sales tax on a monthly basis via electronic funds transfer if their liability is over:

$96,000

To evaluate an applicant’s financial responsibility, the Utah contractor license application will ask if any judgments, liens, taxes, or child support delinquencies have been levied against the applicant, qualifier, owner, or previously owned entities in what timeframe?

The last 8 years

How much time does an employee have to report a workplace injury?

180 days

How long does a licensed contractor have to notify the division of a mailing address change?

10 days

Once a contractor has been paid by a project owner, how long do they have to pay their subcontractors before Utah law will require them to pay interest on the amount due?

30 Days

How long will the Division of Occupational and Professional Licensing hold a person responsible for a violation?

5 years

if a person does not have a license, but represent themselves as a licensed contractor, the fine for the first offense is

$1,000

contractor test Flashcards

(98 cards)