Download NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers and more Exams Social Contract Theory in PDF only on Docsity! NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers Name the elements of a business plan - correct answer -cover page -executive summary -company summary -products and services -market analysis -marketing strategy -financial plan advantages of sole proprietorship - correct answer -minimal legal restrictions -simple ownership form -low start up costs -sole ownership of profits -freedom in decision making process disadvantages of sole proprietorship - correct answer -unlimited personal liability -less available capital -possible difficulty obtaining long-term financing -dissolution of the business on the even of the owner's death NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers who has limited liability in the company? - correct answer limited partners advantages of a general partnership - correct answer -ease of formation -direct profit rewards -larger management base than that of a sole proprietorship disadvantages of a general partnership - correct answer -unlimited personal liability of general partners -multiple decision makers -limited life of the business -changes of partners or partnership agreement may be difficult -partnership dissolves in the event of the death of a general partner bid documents - correct answer -invitation to bid -bid instructions NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers what are contingencies - correct answer percentages added to the estimate to protect the contractor if an unanticipated problem occurs what is project overhead - correct answer cost that covers items necessary to complete the project but not directly associated with the labor and materials bonds, temporary storage, temporary office, security guard, utilities, dumpsters, and portable toilets are examples of? - correct answer project overhead the cost of doing business (expenses necessary to keep the business running) is? - correct answer company overhead office rent, accounting fees, taxes, telephone, legal fees, and administrative labor are examples of? - correct answer company overhead NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers what is mark up - correct answer applied to the direct cost of the project what happens if mark up is too low - correct answer you may not cover the costs for project which may cause you to break even or even lose money on the porject what is a conceptual estimate - correct answer generally prepared by the architect using cost models from previous projects what is the benefit of a job cost recording system - correct answer helpful in the estimating and project management what are the 4 required elements of a contract - correct answer offer and acceptance consideration competent parties legal purpose breach of contract occurs when a party... - correct answer refuses to perform the contract NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers performs an act prohibited by the contract prevents the other party from performing its obligations idemnification - correct answer absolves the indemnified party from any payment for losses and damages incurred by a third party indemnification clauses must be... - correct answer examined carefully to ensure the proper liability is distributed between the contractor and the owner 3 types of construction contracts - correct answer lump sum unit price cost plus lump sum contract - correct answer contractor agrees to complete the project for a predetermined, specified price unit-price contract - correct answer used for jobs where the extent of work cannot be fully determined or the actual quantities of NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers what is not a part of cash management? - correct answer bidding bidding is a part of what? - correct answer project management Who must certify progress payment applications? - correct answer Architect Project Completion Activities Include: - correct answer -Conduct punchlist -Identify how to request warranty repairs -Send customer satisfaction survey -Obtain Certificate of Occupancy -Establish dates of substantial and final completion -Issue Certificate of Substantial Completion -Provide to the owner warranties and related documents -Issue a final certificate for payment NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers Personal opinions ________________ be included in daily reports? - correct answer shouldn't Information in daily reports should include? - correct answer -Project name and location -Date -Weather conditions -Personnel on the project -Description of work -Hors worked on each task -Change orders -Progress of the project -Other relevant information What material delivery strategy minimizes inventory costs by planning for arrival immediately prior to installation? What is the acronym? - correct answer Just-in-time prohibited hiring questions - correct answer -age -disabilities NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers -pregnant -marital status -children -religion -sexual orientation -ethnicity employee documentation - correct answer -I-9 -w-4 -w-5 -state tax form -employment application -policy signoffs -emergency notification forms what applies to employers that have one or more employees? - correct answer fair labor standards act NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers if you have more than 10 employees your Emergency Action plan must be? - correct answer written (NOT ORAL) when is OSHA form 300 not required? - correct answer when there are fewer than 10 employees what are the 3 OSHA forms for employers with over 10 employees? - correct answer OSHA 300 OSHA 300A OSHA 301 how long do you keep OSHA 300? - correct answer 5 years if a death occurs, how many hours do you have to report that to OSHA? - correct answer 8 hours If exposure (including employee exposure to toxic substances and harmful physical agents) occurs, these records must be maintained for? - correct answer 30 years NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers Programmed inspections are performed on establishments that? - correct answer Have high injury rates Before beginning any demolition or renovation activities on existing buildings, you should evaluate the potential for? - correct answer releasing asbestos If working with asbestos, you must submit a written notice of intent ____ working days ________________ to starting construction activities? - correct answer 10, prior Georgia regulation requires that project notification be provided whenever involving ____ or more linear feet or ____ or more square feet of asbestos-containing material. - correct answer 10, 10 environmental law includes... - correct answer clean water act clean air act NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers endangered species act national environmental policy act national historic preservation act what do contractors give to homeowners of homes that are pre-1978 - correct answer protect your family from lead in your home pamphlet Accounting cycles begin with _______________________ and ___________________ daily transactions? - correct answer classifying, recording source documents - correct answer cash receipts credit card receipts customer invoices purchase orders materials invoices deposit slips time cards NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers this method have? What is the maximum gross receipts permitted for this method? - correct answer Completed contract method gives maximum tax deferral $10 million for previous 3 tax years Accounting method for recognizing income as it is earned during the construction project? What is the disadvantage of this method? What is the advantage of this method? - correct answer Percentage of completion method completion percentage, income, and expenses are estimated. Better picture of financial position In NET ____ terms, payment is due ____ days after receiving the invoice? - correct answer 10, 30, 60 As a best practice for account payables, invoices should be paid within the terms of the __________________ ________________, not the date received? - correct answer invoice date NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers Items of value owned by the business that can be converted into cash in less than one year are considered? - correct answer Assets Miller Act - correct answer Require performance and payment bonds on all federal construction projects greater than $100k Davis-Bacon Act - correct answer Requires payment of prevailing wages on federally-financed or assisted projects. Walsh-Healey Public Contracts Act - correct answer Requires payment of minimum wage and overtime on contracts that provide goods to the federal givernment Youth minimum wage - correct answer Minors under 20; $4.25 during the first 90 days; cannot displace any employee to hire someone at youth rate Fair Labor Standards Act (FLSA) - correct answer Minimum wage, youth minimum wage, NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers overtime rate, pay at regular intervals, age restrictions (hours or work, or dangerous work) I-9 form requirements - correct answer Within 3 days of hire; kept for 3 years after hire or 1 year after employment ends (whichever is later) FLSA youth limits - correct answer Limits hours under 16 can work; forbids children under 18 from dangerous jobs FLSA criminal penalties - correct answer 1st offense, fine up to $10k; 2nd imprisonment FLSA civil penalties - correct answer Up to $1,100 per violation 1099 Requirements - correct answer Reporting payments of $600 or more to independent contractors NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers BOPs bundle __________________ and __________________ together? - correct answer Property, liability The purpose of BOPs is to? - correct answer Eliminate gaps between separate property and liability policies Worker's Compensation Insurance provides coverage for? - correct answer Employees who are injured on the job. Who pays for workers' compensation insurance? - correct answer The employer, never the employee The parties of a bond agreement include? - correct answer Surety bonding company, Owner, Contractor A lien bond guarantees? - correct answer Liens cannot be placed against the owner's property by contractor's for payment of services NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers The _________________ _________________ is the current __________________ law requiring all federally funded construction projects to be _______________ if valued at greater than ____ dollars? - correct answer Miller Act, federal, bonded, 100,000 A good logo design should be? - correct answer -Simple and easy to remember -attractive in color and black/white -limited to one or two colors -representative of your company identity -scalable up or down Items to consider before bidding a project? - correct answer -Company resources and type of work -Site considerations -Location and cost effectiveness -Risk assessment -Profitability of project A form of collusion where contractors coordinate their bids to fix the award outcome of a project? - correct answer Bid rigging NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers Hours spent planning and scheduling are what type of costs? - correct answer labor costs Equipment needed to complete a project is what type of cost? - correct answer direct cost Always add __________________ to material costs? - correct answer contingencies Typically if allowances are used for finish materials, a ___________________ __________________ is created to reconcile actual finish material costs? - correct answer change order Costs that are necessary to complete the project but are not directly associated with labor and materials are? - correct answer project overhead Costs of doing business necessary to keep the operation running that are not directly linked to a project are? - correct answer company overhead NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers and damages incurred by a third party? - correct answer Indemnification, indemnified What is a way to shift payment or liability for any loss or damage that has occurred? - correct answer Indemnification Contracts contain _______________ _______________ to shift liability or payment for any damages or losses that could occur? - correct answer indemnification clauses What defines the contractor's responsibility for the repair of defects to the construction project after the completion of the work? - correct answer Warranty provisions What form of contract places all risk on the Contractor for additional or unforeseen circumstances? - correct answer Lump-sum contract What contracting method is a traditional form of agreement where the Contractor performs the work and is responsible for the costs of all materials and labor? - correct answer Single prime NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers What contracting method is for design and construction with a single entity to complete the process from start to finish from design through completed construction? - correct answer Design/build What contracting method is with a single professional who coordinates and manages the project? - correct answer Construction management What contracting method is for financing, land acquisition, design, and construction with a single entity to complete the process according to a pre-specified criteria and expanding liability? - correct answer Turnkey What contracting method begins before completion of the contract documents and is usually phased. - correct answer Fast-track construction What contracting method is characteristic of large projects where the owner takes a more active role in managing the different Contractors? - correct answer Multiple Prime Contracts NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers What contracting method is used to bind multiple parties to meet common objectives of a construction project? - correct answer Partnering In a legal judgement, do written or oral agreements take precedent? - correct answer Written Pollution plan required by creation of the NPDES permitting system created in 1990 that require pollution plans for activities disturbing five acres or more? - correct answer Phase I NPDES permitting system expansion in 1999 that required pollution plans for activities disturbing one acre but less than five acres with possible exceptions? - correct answer Phase II What is the main cause of water pollution? - correct answer Sedimentation Work designed to permanently eliminate lead-based paint hazards is considered? - correct answer Lead abatement NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers Penalties for inaccurate and unprompted deposits to the IRS can range from? - correct answer 2 percent 100 percent of the Employer's tax liability To report certain types of payment made during the year to persons not treated as employees, use IRS form _____________________? - correct answer 1099-MISC For the IRS Tax Calendar, reference? - correct answer NASCLA Handbook, 15-6 For the IRS Late Payment Table, reference? - correct answer NASCLA Handbook, 15-5 Who is responsible to pay sales tax on all materials used in a construction project? - correct answer Contractor What "clouds" a title to real property to secure payment for labor and material used in the improvement of real NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers property? - correct answer Liens Can an owner sell a property with a lien? - correct answer Yes, but it will not be with a clear title A mortgage typically has a priority over labor liens due to the? - correct answer Date filed A Notice to Commencement must be filed within ____ days after the contractor physically commences work on the property with the _______________ of the _______________ _____________? - correct answer 15, clerk, superior court As a rule of thumb, a Notice of Commencement should be filed within ____ days of the issuance of a building permit? - correct answer 30 The Contractor must file a Claim of Lien if payment is not received within ____ days of filing an interim waiver and release? - correct answer 60 NASCLA Contractor's Guide, NASCLA Contractors Guide Questions And Answers All subcontract payment applications should include? - correct answer lien waivers