Practice Test Geeks(CRC) Certified Residential Contractor Practice Test
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Budgeting & Cost Estimation Flashcards

7 cards from real CRC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Budgeting & Cost Estimation flashcards as text

  1. The 'earned value' (EV) of a project task is best defined as:

    Answer: The budgeted cost of the work that has actually been completed

    Earned value represents the budgeted cost for the specific scope of work that has been physically completed.

  2. Which insurance type protects a residential contractor from claims arising after a project is completed, such as a structural defect discovered two years later?

    Answer: Completed operations coverage

    Completed operations coverage, part of general liability, protects against bodily injury or property damage claims after project completion.

  3. A contractor is calculating the cost of a 1,400 sq ft concrete slab at $6.50 per sq ft for materials and $4.75 per sq ft for labor. What is the total estimated cost for the slab?

    Answer: $15,750

    Total unit rate = $6.50 + $4.75 = $11.25 per sq ft; $11.25 × 1,400 = $15,750.

  4. When preparing a detailed estimate, 'subcontractor quotes' should ideally be obtained:

    Answer: At least one week before bid submission to allow scope review

    Obtaining quotes early allows time to review scope, clarify inclusions/exclusions, and compare multiple bids before finalizing the estimate.

  5. A 'contingency reserve' in a residential construction budget is intended to cover:

    Answer: Known risks with uncertain cost impacts and unforeseen conditions

    Contingency reserves address identified but uncertain risks; they are not for scope changes or profit.

  6. In residential construction, 'general conditions' costs typically include all of the following EXCEPT:

    Answer: Framing lumber for walls

    Framing lumber is a direct construction cost (material takeoff item), not a general condition; GC costs support project operations.

  7. A residential contractor uses a 'bid bond' when submitting a proposal. The bond's primary purpose is to:

    Answer: Assure the owner that the contractor will enter into the contract at the bid price if selected

    A bid bond guarantees that the winning bidder will execute the contract and provide required performance and payment bonds.