VIRGINIA HIC CERTIFICATION SCRIPT 2026 PRACTICE
SOLUTIONS GRADED A+
⩥ Which of the following statements about a sole proprietorship is TRUE?
Answer: The business, or any part of it, can be sold, altered, or exchanged at will.
⩥ What type of business organization allows people to share financial resources?
Answer: Partnership.
⩥ Which of the following estimating methods is typically used by the architect rather than the
contractor?
Answer: Conceptual estimate.
⩥ Equipment needs for a project are BEST estimated by
Answer: calculating the number of hours or days it is needed.
⩥ What should be added to wage rates to ensure accuracy in estimating labor for a project?
Answer: Labor burden.
⩥ A reason for using a lower than usual profit markup for a specific project could be to
Answer: cover company overhead costs.
⩥ Which of the following is a TRUE statement about estimating?
Answer: Both overestimating and underestimating costs could have disastrous consequences.
⩥ A contractor should do all of the following when estimating a project EXCEPT
,Answer: assume ideal conditions
⩥ What MUST be included in an estimate for a job?
Answer: Materials, labor, equipment, and overhead costs.
⩥ Costs that relate to construction activity but are NOT easily identifiable for a specific project
are considered
Answer: project overhead.
⩥ All of the following are considered general conditions that could affect costs directly
associated with a specific project EXCEPT
Answer: profit margin
⩥ The two basic laws of construction estimating are
Answer: low estimates decrease profits and high estimates decrease volume.
⩥ An agreement that calls for a contractor to be paid actual costs for labor and materials plus a
fixed fee for the contractor's overhead and profit is called a
Answer: cost plus contract.
⩥ Generally, who is responsible for ensuring that a project meets all zoning requirements?
Answer: Project owner.
⩥ A bid that does NOT specifiy how long it remains open or in effect is considered to be open
for
Answer: a reasonable amount of time.
, ⩥ A contractor is about to sign an agreement with a representative of a corporation. The
contractor should
Answer: verify that the representative has the authority to bind the corporation.
⩥ What may be covered by an allowance in a contract?
Answer: Light fixture costs
⩥ The prime contractor is one who
Answer: is responsible for the overall construction of the project.
⩥ A contractor plans to use materials or methods other than those standard in the industry. The
contractor should
Answer: specifically state this in the agreement.
⩥ An owner hires a construction manager for a project. Which of the following is TRUE with
regard to subcontractors?
Answer: The subcontractors are prime contractors.
⩥ The three PRIMARY elements of a contract are
Answer: offer, acceptance, and consideration.
⩥ A contract refers to an insurance agreement that the contractor is REQUIRED to have. This is
considered
Answer: part of the contract.
⩥ What can be determined by summing the project activities into an overall schedule?
Answer: The total resource demand for a project at any given time.
SOLUTIONS GRADED A+
⩥ Which of the following statements about a sole proprietorship is TRUE?
Answer: The business, or any part of it, can be sold, altered, or exchanged at will.
⩥ What type of business organization allows people to share financial resources?
Answer: Partnership.
⩥ Which of the following estimating methods is typically used by the architect rather than the
contractor?
Answer: Conceptual estimate.
⩥ Equipment needs for a project are BEST estimated by
Answer: calculating the number of hours or days it is needed.
⩥ What should be added to wage rates to ensure accuracy in estimating labor for a project?
Answer: Labor burden.
⩥ A reason for using a lower than usual profit markup for a specific project could be to
Answer: cover company overhead costs.
⩥ Which of the following is a TRUE statement about estimating?
Answer: Both overestimating and underestimating costs could have disastrous consequences.
⩥ A contractor should do all of the following when estimating a project EXCEPT
,Answer: assume ideal conditions
⩥ What MUST be included in an estimate for a job?
Answer: Materials, labor, equipment, and overhead costs.
⩥ Costs that relate to construction activity but are NOT easily identifiable for a specific project
are considered
Answer: project overhead.
⩥ All of the following are considered general conditions that could affect costs directly
associated with a specific project EXCEPT
Answer: profit margin
⩥ The two basic laws of construction estimating are
Answer: low estimates decrease profits and high estimates decrease volume.
⩥ An agreement that calls for a contractor to be paid actual costs for labor and materials plus a
fixed fee for the contractor's overhead and profit is called a
Answer: cost plus contract.
⩥ Generally, who is responsible for ensuring that a project meets all zoning requirements?
Answer: Project owner.
⩥ A bid that does NOT specifiy how long it remains open or in effect is considered to be open
for
Answer: a reasonable amount of time.
, ⩥ A contractor is about to sign an agreement with a representative of a corporation. The
contractor should
Answer: verify that the representative has the authority to bind the corporation.
⩥ What may be covered by an allowance in a contract?
Answer: Light fixture costs
⩥ The prime contractor is one who
Answer: is responsible for the overall construction of the project.
⩥ A contractor plans to use materials or methods other than those standard in the industry. The
contractor should
Answer: specifically state this in the agreement.
⩥ An owner hires a construction manager for a project. Which of the following is TRUE with
regard to subcontractors?
Answer: The subcontractors are prime contractors.
⩥ The three PRIMARY elements of a contract are
Answer: offer, acceptance, and consideration.
⩥ A contract refers to an insurance agreement that the contractor is REQUIRED to have. This is
considered
Answer: part of the contract.
⩥ What can be determined by summing the project activities into an overall schedule?
Answer: The total resource demand for a project at any given time.
