QUESTIONS AND CORRECT VERIFIED ANSWERS/ VA
GENERAL CONTRACTORS LICENSE TEST 2025/2026
(NEWEST!)
Question 1
Which of the following estimating methods is typically used by the architect
rather than the contractor?
A) Detailed estimate
B) Unit price estimate
C) Square foot estimate
D) Bid estimate
E) Conceptual estimate
Correct Answer: E) Conceptual estimate
Rationale: Conceptual estimate is stated as the method "typically
used by the architect rather than the contractor."
Question 2
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...
A) Lump sum contract
B) Unit price contract
C) Guaranteed maximum price contract
D) Fixed price contract
E) Cost plus contract
Correct Answer: E) Cost plus contract
,Rationale: A cost plus contract is defined as "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."
Question 3
Equipment needs for a project are BEST estimated by...
A) Guessing the total cost.
B) Using a flat daily rate regardless of use.
C) Calculating the number of hours or days it is needed.
D) Relying on manufacturer's recommendations only.
E) Estimating based on the total project budget.
Correct Answer: C) Calculating the number of hours or days it is
needed.
Rationale: Equipment needs for a project are BEST estimated by
"Calculating the number of hours or days it is needed."
Question 4
What type of insurance is needed for a partnership to ensure that the
business does NOT go out of business if one partner dies?
A) General liability insurance
B) Workers' compensation insurance
C) Professional liability insurance
D) Business interruption insurance
E) Key man
Correct Answer: E) Key man
, Rationale: Key man insurance is needed "for a partnership to insure
that the business does NOT go out of business if one partner dies."
Question 5
An owner hires a construction manager for a project. Which of the following
is TRUE with regard to subcontractors in this arrangement?
A) The construction manager is responsible for paying subcontractors
directly.
B) The subcontractors report directly to the owner.
C) The construction manager acts as the general contractor.
D) The subcontractors are prime contractors.
E) The construction manager has no role in subcontractor selection.
Correct Answer: D) The subcontractors are prime contractors.
Rationale: In this scenario, "The subcontractors are prime
contractors."
Question 6
What protects a contractor from risk?
A) A strong legal team.
B) Good project management.
C) Detailed contracts.
D) Financial reserves.
E) Insurance
Correct Answer: E) Insurance
Rationale: Insurance "protects a contractor from risk."