Renovation Contractors Project Planning and Estimation 2

Question 1

Which of the following is the best way to handle a discovered unknown condition (e.g., rotted framing) during a renovation?

Accepted Answer

Stop work and issue a written change order before proceeding

Answer

Fix it and add to the final bill

Answer

Ignore it if it doesn't affect the visible work

Answer

Charge double the standard rate without notice

Question 2

What is a 'punch list' in renovation contracting?

Accepted Answer

A list of outstanding items or deficiencies to be corrected before final payment

Answer

A list of materials needed for ordering

Answer

A schedule of subcontractor work

Answer

A document listing safety hazards

Question 3

When performing a take-off for flooring, a contractor measures 500 sq ft of room space. Why should they order more than 500 sq ft of material?

Accepted Answer

To account for waste from cuts, pattern matching, and damaged pieces

Answer

To keep extra for future jobs

Answer

Suppliers require minimum orders

Answer

Building codes require 10% excess storage

Question 4

What is the purpose of a 'schedule of values' in a renovation contract?

Accepted Answer

A breakdown of total contract price allocated to each phase or task for billing purposes

Answer

A list of fair market values for the property

Answer

A valuation of contractor's equipment

Answer

A tool for comparing subcontractor bids

Question 5

A contractor calculates direct costs of $40,000 and wants a 20% gross profit margin. What should the contract price be?

Accepted Answer

$50,000

Answer

$48,000

Answer

$44,000

Answer

$52,000

Question 6

What is the main risk of using 'square footage pricing' alone for renovation estimates?

Accepted Answer

It ignores specific project conditions that significantly affect actual costs

Answer

It takes too long to calculate

Answer

Clients always reject it

Answer

It overestimates material costs