NECA Project Management & Estimating 3

Question 1

What is the primary advantage of using a unit price contract versus a lump sum contract for an electrical contractor?

Accepted Answer

Payment is tied to actual quantities installed, reducing quantity risk

Answer

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?

Accepted Answer

The specifications (Division 26)

Answer

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?

Accepted Answer

Retrofit work in an occupied, congested facility

Answer

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?

Accepted Answer

It assures the owner the contractor will enter into the contract if selected

Answer

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?

Accepted Answer

Stored materials provision in the payment terms

Answer

The stored materials provision specifies conditions (documentation, insurance, location) under which payment may be made for materials not yet installed.

(NECA) National Electrical Contractors Association Practice Test

(NECA) National Electrical Contractors Association Practice Test

NECA Project Management & Estimating 3