General Contractor License Project Management and Supervision 5

Question 1

A general contractor issues a backcharge to a subcontractor. This typically occurs when:

Accepted Answer

The GC incurs costs to correct, complete, or clean up after a subcontractor's failure

Answer

Backcharges recover costs the GC spent remedying a subcontractor's breach of contract, such as cleanup, rework, or protection of other work.

Question 2

Which document is used to formally request information or clarification from the architect or engineer during construction?

Accepted Answer

Request for Information (RFI)

Answer

An RFI is the formal mechanism for contractors to ask the design team for clarification on drawings or specifications without assuming the resolution themselves.

Question 3

What is the 'pay-if-paid' clause in a subcontract, and why is it significant?

Accepted Answer

It conditions the GC's obligation to pay the sub on the GC first receiving payment from the owner, shifting owner nonpayment risk to the sub

Answer

Pay-if-paid clauses transfer the risk of owner nonpayment from the GC to the subcontractor; enforceability varies by state, with some states restricting or prohibiting them.

Question 4

During project closeout, which of the following should the general contractor compile and deliver to the owner?

Accepted Answer

As-built drawings, warranties, operations and maintenance (O&M) manuals, and final lien waivers

Answer

Complete project closeout documents include as-builts, manufacturer warranties, O&M manuals, training records, and final lien releases to transfer full building responsibility to the owner.

Question 5

What is retainage in a construction contract, and what is its typical percentage?

Accepted Answer

A portion of each progress payment withheld by the owner (typically 5–10%) until substantial or final completion to ensure contract performance

Answer

Retainage incentivizes contractors to complete all punch list items and protects owners against defective work or incomplete scopes; many states regulate maximum retainage percentages.

General Contractor License Practice Test

General Contractor License Practice Test

General Contractor License Project Management and Supervision 5