VIRGINIA CONTRACTORS STUDY - A & B LICENSE
(CALCULATION PART) LATEST 2024
1. The owner requests changes which will cost the contractor $2,500 in labor and
materials and $700 in overhead costs. With the change, the contractor would be
relieved of $1,000 in labor costs and $280 in overhead costs from the original
contract. The original bid included profit of 10% of all costs. The contractor wants
to make a profit of 10% of all costs on the changes. The amount of the change order
should included a request of an additional.
A. $1820
B. $2,112
C. $3,200
D. $3,520: B. $2,112
2. A lump sum contract on a project has a total contract price of $200,000.
Retainage has been held back at 10%. The contractor has received progress
payments of 90% of the project. The contractor submits a request for the final
payment for the now completed project. The final payment amount should be for
A. less than 25,000$
b. between 25,000$ & 35,000$
c. between 35,000$ & 40,000$
d. more than 40,000$: c. between 35,000$ & 40,000$
3. A contractor agrees to unit price contract to Product A fir $50 per unit, product B
for $50 per unit, and product C for $375 per unit. The contractor is also to add 30%
for overhead and profit. How much the contractor should be paid for producing 27
units of product A, 56 units of product B and 78 units of product C?
a. less than 40,000$
b. between 40,000$ & 45,000$
c. between 45,000 & 50,000$
d. more than 50,000$: b. between 40,000$ & 45,000$
4. A contract calls for liquidated damage of 500$ per day. The project completed
five days late because it was delayed by rain. The completion would have been 10
days earlier if it were not for the rain delay. There was a 500$ bonus per day for the
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, contractor early completion. No extension of time was requested or granted. How
much does the contractor earn or owe?
a. owes 2,500 in liquidated damage
b. owes 500 in liquidated damage
c. is due a 2,500 bonus from the owner
d. is due a 500 bonus from the owner:
5. A job has a price of 165,000 after direct costs and overhead are factored. What
will the final bid be if the profit markup is 11.5%
a. 186,440
b. 183,975
c. 179,545
d. 189,874: a. 186,440
6. Give the following information, is it advantageous to purchase or rent this
particular piece of equipment if it has 3 useful years?
purchase rent
Initial cost
10,000 0 rental
0 550 salvage
value 2,0000 0
insurance 40 0
operating costs
200 0
a. renting saves 840
b. renting saves 2,280
c. purchasing saves 840
d. purchasing saves 3,160: d. purchasing saves 3,160
7. In cost plus contract, the contractor receives direct costs for labor and material
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.
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(CALCULATION PART) LATEST 2024
1. The owner requests changes which will cost the contractor $2,500 in labor and
materials and $700 in overhead costs. With the change, the contractor would be
relieved of $1,000 in labor costs and $280 in overhead costs from the original
contract. The original bid included profit of 10% of all costs. The contractor wants
to make a profit of 10% of all costs on the changes. The amount of the change order
should included a request of an additional.
A. $1820
B. $2,112
C. $3,200
D. $3,520: B. $2,112
2. A lump sum contract on a project has a total contract price of $200,000.
Retainage has been held back at 10%. The contractor has received progress
payments of 90% of the project. The contractor submits a request for the final
payment for the now completed project. The final payment amount should be for
A. less than 25,000$
b. between 25,000$ & 35,000$
c. between 35,000$ & 40,000$
d. more than 40,000$: c. between 35,000$ & 40,000$
3. A contractor agrees to unit price contract to Product A fir $50 per unit, product B
for $50 per unit, and product C for $375 per unit. The contractor is also to add 30%
for overhead and profit. How much the contractor should be paid for producing 27
units of product A, 56 units of product B and 78 units of product C?
a. less than 40,000$
b. between 40,000$ & 45,000$
c. between 45,000 & 50,000$
d. more than 50,000$: b. between 40,000$ & 45,000$
4. A contract calls for liquidated damage of 500$ per day. The project completed
five days late because it was delayed by rain. The completion would have been 10
days earlier if it were not for the rain delay. There was a 500$ bonus per day for the
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, contractor early completion. No extension of time was requested or granted. How
much does the contractor earn or owe?
a. owes 2,500 in liquidated damage
b. owes 500 in liquidated damage
c. is due a 2,500 bonus from the owner
d. is due a 500 bonus from the owner:
5. A job has a price of 165,000 after direct costs and overhead are factored. What
will the final bid be if the profit markup is 11.5%
a. 186,440
b. 183,975
c. 179,545
d. 189,874: a. 186,440
6. Give the following information, is it advantageous to purchase or rent this
particular piece of equipment if it has 3 useful years?
purchase rent
Initial cost
10,000 0 rental
0 550 salvage
value 2,0000 0
insurance 40 0
operating costs
200 0
a. renting saves 840
b. renting saves 2,280
c. purchasing saves 840
d. purchasing saves 3,160: d. purchasing saves 3,160
7. In cost plus contract, the contractor receives direct costs for labor and material
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.
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