General Contractor License Project Management 4

Question 1

Which contract delivery method requires the contractor to design the project AND construct it, providing a single point of responsibility to the owner?

Accepted Answer

Design-Build (DB)

Answer

Design-Build consolidates design and construction responsibility under one entity, eliminating the traditional separation between designer and builder.

Question 2

What is 'retainage' in a construction contract, and when is it typically released?

Accepted Answer

A percentage of each progress payment withheld until substantial completion or final acceptance

Answer

Retainage is a holdback (typically 5–10%) from each payment application, released to the contractor after substantial or final completion to ensure defects are corrected.

Question 3

A project's Earned Value Analysis shows a Schedule Performance Index (SPI) of 0.75. What does this indicate?

Accepted Answer

The project is only accomplishing 75 cents of scheduled work for every dollar of work planned

Answer

An SPI below 1.0 means the project is behind schedule — only $0.75 of planned work is being accomplished for every $1.00 of work scheduled.

Question 4

What is the primary legal purpose of a contractor maintaining a comprehensive daily construction log?

Accepted Answer

To provide contemporaneous documentation of events that supports delay and extra work claims

Answer

Daily logs are critical contemporaneous records that substantiate claims for delays, changed conditions, or extra work when disputes arise months or years later.

Question 5

Under Davis-Bacon Act requirements on federally funded projects, what wage rates must contractors and subcontractors pay their workers?

Accepted Answer

Prevailing wage rates determined by the U.S. Department of Labor for the project locality

Answer

The Davis-Bacon Act requires that workers on federal construction contracts be paid locally prevailing wages and fringe benefits as determined by the DOL.

General Contractor License Practice Test

General Contractor License Practice Test

General Contractor License Project Management 4