General Contractor License Planning and Estimating 2

Question 1

What does the term 'contingency allowance' mean in a construction estimate?

Accepted Answer

A reserve fund for unforeseen costs during the project

Answer

A contingency allowance is a percentage-based reserve added to an estimate to cover unforeseen or uncertain costs.

Question 2

Which scheduling method uses arrows to represent activities and nodes to represent events?

Accepted Answer

Arrow Diagramming Method (ADM)

Answer

The Arrow Diagramming Method (ADM) uses arrows for activities and circles (nodes) for start/end events.

Question 3

What is the purpose of a quantity takeoff in estimating?

Accepted Answer

To measure and list all materials and work items from the plans

Answer

A quantity takeoff (QTO) involves systematically measuring all materials and work items from drawings to form the basis of an estimate.

Question 4

A project's direct costs are $800,000 and overhead is 12%. What is the total cost before profit?

Accepted Answer

$896,000

Answer

$800,000 × 1.12 = $896,000 total cost before profit.

Question 5

Which document defines the full scope of work that a contractor must perform on a project?

Accepted Answer

Scope of work / specifications

Answer

The scope of work, typically detailed in the specifications and contract documents, defines exactly what the contractor is required to perform.

General Contractor License Practice Test