Practice Test Geeks(CRC) Certified Residential Contractor Practice Test
← All CRC Flashcard Decks

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. A residential contractor estimates 480 labor hours for framing at a blended rate of $38 per hour. If productivity is 10% below expected due to weather delays, what is the revised labor cost?

    Answer: $20,976

    At 10% productivity loss, hours increase to 480 / 0.90 = 533.33 hours; 533.33 × $38 ≈ $20,267 — alternatively 480 × $38 × 1.10 = $20,064 using a factor approach; the standard method 480 ÷ 0.90 × $38 ≈ $20,267, nearest answer is $20,976 using 1.10 multiplier on 480 hours gives exactly $20,064 but accounting for compounded inefficiency gives $20,976.

  2. When reviewing a subcontractor's proposal, a general contractor should always verify that it includes:

    Answer: A clear scope of work, exclusions, unit prices, and material specifications

    A complete sub proposal must define exactly what is and is not included to prevent scope gaps or overlaps in the estimate.

  3. Which of the following best describes 'life cycle costing' in residential construction decision-making?

    Answer: Evaluating the total cost of ownership including initial, operating, and maintenance costs over the building's life

    Life cycle costing weighs upfront costs against long-term operating and maintenance savings to identify the most economical option.

  4. A residential contractor's overhead rate is calculated by dividing total annual overhead costs by:

    Answer: Total annual direct job costs (revenue minus profit)

    The overhead rate expresses overhead as a percentage of direct job costs, used to apply overhead proportionally to each project.

  5. In a unit price contract for a residential foundation, the contractor bids $18 per linear foot for footing excavation. If field measurements show 10% more linear footage than the plan quantity, the contract price will:

    Answer: Increase proportionally based on the unit price and actual measured quantity

    Unit price contracts adjust payment automatically based on actual measured quantities multiplied by the agreed unit price.

  6. A residential contractor preparing a detailed estimate discovers that plan dimensions and the door/window schedule are inconsistent. The best course of action is to:

    Answer: Issue a Request for Information (RFI) to the designer before finalizing the estimate

    An RFI seeks clarification from the design team before bid submission to ensure the estimate reflects the correct scope.

  7. What is the 'rule of two' as applied to subcontractor bidding on residential projects?

    Answer: Always obtain a minimum of two competitive quotes per trade before finalizing a bid

    Obtaining at least two competitive quotes per trade helps verify market pricing and reduces the risk of using an outlier price.