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,VA Contractors General (Class A or B)
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1. Which of the following estimating methods is typically used by the
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architect rather than the contractor?
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A. Detailed estimate
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B. Conceptual estimate
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C. Parametric estimate
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D. Unit cost estimate
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Answer: B x
Rationale: Architects often use conceptual estimates early in design when
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few details are available. Contractors typically use detailed or unit cost
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estimates once plans are complete.
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2. An agreement that calls for a contractor to be paid actual costs for
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labor and materials plus a fixed fee for the contractor's overhead and
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profit is called a...
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A. Lump sum contract
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B. Time and materials contract
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C. Cost plus contract
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D. Unit price contract
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Answer: C x
Rationale: A cost-plus-fixed-fee contract reimburses the contractor for
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actual costs plus a predetermined fee for overhead and profit.
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, 3. Equipment needs for a project are BEST estimated by...
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A. Asking the supplier
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B. Calculating the number of hours or days it is needed
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C. Using last project's equipment list
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D. Guessing based on square footage
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Answer: B x
Rationale: Accurate equipment estimation requires calculating the duration
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of use (hours/days) based on production rates and project schedule.
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4. What type of insurance is needed for a partnership to insure that the
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business does NOT go out of business if one partner dies?
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A. Workers' compensation
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B. General liability
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C. Business interruption
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D. Key man
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Answer: D x
Rationale: Key man (or key person) insurance provides funds to the business
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to cover losses and transition costs if a critical partner dies.
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5. An owner hires a construction manager for a project. Which of the
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following is TRUE with regard to subcontractors?
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A. The subcontractors report directly to the owner
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B. The subcontractors are prime contractors
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C. The construction manager hires all subcontractors directly
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D. Subcontractors do not need contracts
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