NECA Project Management & Estimating 3 — Questions and Answers
Question 1: What is the primary advantage of using a unit price contract versus a lump sum contract for an electrical contractor?
- The contractor bears all risk for quantity variations
- Payment is tied to actual quantities installed, reducing quantity risk (Correct answer)
- The owner takes on all responsibility for scheduling
- Labor rates are fixed regardless of market conditions
Correct answer: Payment is tied to actual quantities installed, reducing quantity risk
Under a unit price contract, the contractor is paid for actual quantities installed, so quantity risk shifts largely to the owner.
Question 2: Which document formally describes the scope of work, materials, installation methods, and quality requirements for an electrical project?
- The project schedule
- The bid bond
- The specifications (Division 26) (Correct answer)
- The lien waiver
Correct answer: The specifications (Division 26)
Division 26 of the specifications outlines the technical requirements, acceptable materials, and installation standards for electrical work.
Question 3: On a NECA labor unit table, what adjustment factor would typically INCREASE the labor units for a project?
- New construction in an open building
- Retrofit work in an occupied, congested facility (Correct answer)
- Single-story ground-level installation
- Straight horizontal conduit runs in an open ceiling
Correct answer: Retrofit work in an occupied, congested facility
Retrofit work in occupied, congested spaces significantly reduces crew efficiency, requiring upward adjustment of base labor units.
Question 4: What is the purpose of a 'bid bond' submitted with an electrical contractor's proposal?
- It guarantees material prices will not increase after award
- It assures the owner the contractor will enter into the contract if selected (Correct answer)
- It ensures workers will be paid prevailing wages
- It covers the cost of correcting defective work after completion
Correct answer: It assures the owner the contractor will enter into the contract if selected
A bid bond guarantees that the contractor will enter into the contract and provide performance and payment bonds if their bid is accepted.
Question 5: When reviewing subcontractor invoices, an electrical project manager notices overbilling for material stored off-site. Which contract clause governs payment for stored materials?
- Substantial completion clause
- Retainage clause
- Stored materials provision in the payment terms (Correct answer)
- Liquidated damages clause
Correct answer: Stored materials provision in the payment terms
The stored materials provision specifies conditions (documentation, insurance, location) under which payment may be made for materials not yet installed.
Question 6: An electrical estimator is performing a takeoff and notices that the drawing scale is 1/8" = 1'-0". If a conduit run measures 3.5 inches on the drawing, what is the actual length?
- 28 feet (Correct answer)
- 42 feet
- 56 feet
- 14 feet
Correct answer: 28 feet
At 1/8" = 1'-0", each inch on the drawing equals 8 feet, so 3.5 inches × 8 = 28 feet.
Question 7: Which earned value metric indicates that a project is over budget when its value is greater than 1.0?
- Schedule Performance Index (SPI) (Correct answer)
- Cost Performance Index (CPI)
- Cost Variance (CV)
- Budget at Completion (BAC)
Correct answer: Schedule Performance Index (SPI)
An SPI greater than 1.0 indicates the project is ahead of schedule, not over budget; a CPI less than 1.0 indicates over-budget status.
NECA Project Management & Estimating 3
What is the primary advantage of using a unit price contract versus a lump sum contract for an electrical contractor?