NASCLA Contractors Guide Questions and Answers, Exams of Construction

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NASCLA Contractors Guide QUESTIONS

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market analysis - ANSWER -major competitors Financial Plan - ANSWER -projection Advantage of a Sole Proprietorship - ANSWER -Freedom in decision-making process Disadvantage of a Sole Proprietorship - ANSWER -Unlimited personal liability Partnership - ANSWER -each partner expects to share in the profits and losses of the business. Two types of partnerships- General and limited Disadvantages of a General Partnership - ANSWER -Unlimited personal liability of general partners. Partnership dissolves in the event of the death of a general partner. Purpose of Licensing - ANSWER -A major purpose of licensing is to protect the health, safety, and welfare of the public VA Board for Contractors - ANSWER -7 licensed contractor members Licensing Requirements: Exemptions - ANSWER -Any material supplier Class A - ANSWER -Single contract - $120,000 or more 12-month - $750,000 or more License classes are determined by - ANSWER -Net worth

Class A Class B - ANSWER -$45, $15, License Renewals - ANSWER -license expire two years must file renewal form within 30 days of the license expiration fees are not received within 30 days must reinstate the license Changes - ANSWER -change of designated employee 90 days change of a business/trade name 30 days change of address 30 days Prohibited act - ANSWER -Failure to maintain all documents relating to contract 5 years Recovery Fund - ANSWER -to homeowners per claimant $20, per contractor $40, $25 assessment minimum balance set at $400, If the balance of the fund falls below assessment will not exceed $ Property Insurance - ANSWER -covers your business and personal property Named Peril Builders' Risk Insurance - ANSWER -Water damage

Transportation Floater and Motor Truck Cargo Insurance - ANSWER -damage that occurs to freight during transport Commercial General Liability (CGL) - ANSWER -bodily injury that results in actual physical damage or loss for individuals who are not employees. damage or loss to property not belonging to the business. Key Man Life Insurance - ANSWER -partnership if one of the partners died Workers' Compensation Insurance - ANSWER -for employees who are injured on the job. purchased by the employer VA Coverage Requirements - ANSWER -Under VA Law Three or more full-time or part-time employees Subcontractors - ANSWER -verify their insurance coverage Bond - ANSWER -is a risk transfer between a surety, the contractor, and project owner Types of Bonds - ANSWER -Bid bond - will do work at the submitted bid price Performance bond - complete a contract Payment bond - subcontractors and suppliers will be paid Miller Act - ANSWER -for federally funded projects Construction Industry Payment Protection Act of 1999 - ANSWER -Miller Act payment bond protections subcontractor

If changes are made to a bid package before it is due - ANSWER -Addendum is issued Determining Estimated Costs - ANSWER -quantity take-off method Allowances - ANSWER -finish materials change order Quantity take-off - ANSWER -the most accurate way to estimate Conceptual estiamte - ANSWER -prepared by the architect Key elements to make a contract binding - ANSWER -Offer Acceptance Consideration There are 2 types of breaches: - ANSWER -Material - a serious violation of the contract Immaterial - a less serious violation and usually does not result in termination of the contract Single Prime - ANSWER -architectural firm to design contractor then performs the work Turnkey - ANSWER -contractor also obtains financing and land Fast-Track Construction - ANSWER -phased approach Change Order - ANSWER -a written agreement between the owner and contractor to change the contract Changes prior to the contract award are called - ANSWER -Addenda

Changes made after the contract is signed and executed are called - ANSWER -Modifications Legal Interpretation - ANSWER -If the contract cannot be clarified interpretation will go against the party who wrote it Float time - ANSWER -remaining time after a task is complete and before the next task begins delayed without impacting "zero float" = critical activities Bar Chart - ANSWER -not show the interdependencies of activities Critical Path Method - ANSWER -illustrates the interdependent relationship Superintendent - ANSWER -responsible for daily operations Architect and Owner's Representative - ANSWER -The architect certify each progress payment Tracking the Progress of the Project - ANSWER -Personal comments should not be made in the daily report Budget and Cost Controls - ANSWER -Less inventory onsite will also cut down the risk of theft Budget Tracking - ANSWER -Job cost system Cost Overruns - ANSWER -occur when you exceed budgeted amounts in your estimate Fair Labor Standards Act (FLSA) - ANSWER -one or more employees

federal minimum wage $7.25 per hour overtime compensation of one-and-one-half-times the regular rate Exempt - ANSWER -Administrative personnel Workweek Defined under FLSA - ANSWER -workweek is a period of 168 hours during 7 consecutive 24- hour periods not average two or more workweeks FLSA does not require - ANSWER -vacation holiday Penalties - ANSWER -repeatedly violate the minimum wage or overtime 1,000 for each violation Immigration and Nationality Act - ANSWER -Form I- on file for at least three years within three days of hire Identity and Employment eligibility - ANSWER -U.S. passport Americans with Disabilities Act (ADA) - ANSWER -prohibits discrimination 15 or more employees The ADA applies to people with - ANSWER -AIDS Davis-Bacon Act - ANSWER -prevailing wage rates federally-financed

construction Family and Medical Leave Act - ANSWER -12 weeks of unpaid job-protected leave each year Right-to-work - ANSWER -support a union Safety Standards - ANSWER -employer's responsibility to understand the OSHA standards correct any violations Emergency Action Pan - ANSWER -more than 10 employees in writing OSHA Recordkeeping - ANSWER -more than 10 employees Form 300A - ANSWER -from 300A must be posted by February 1 and kept in place until at least April 30 Retain Records - ANSWER -OSHA five years Fatalities and Hospitalizations - ANSWER -report it within 8 hours Medical Treatment - ANSWER -management and care of a patient Emergency Treatment - ANSWER -Employers must keep MSDSs on hand information chemical Penalties OSHA Enforcement - ANSWER -officals conduct inspections issue citations for violations

Willful Violation - ANSWER -Penalties of up to $70, Pre-bid phase - ANSWER -must learn the regulations Clean Water Act - ANSWER -unlawful discharge any pollutant into navigable waters, unless a National Pollutant Discharge Elimination System (NPDES) permit was obtained Hazardous Substances - ANSWER -you uncover hazardous substances stop construction activities Remodeling or Renovating a Home with Lead-Based Paint (Lead PRE) - ANSWER -EPA pamphlet distributed to the owner and occupants before starting work Lead Abatement - ANSWER -permanently eliminate The Accounting Cycle - ANSWER -Step 1: Classify and Record Transaction source document time cards Step 5: Prepare Adjusted Trial Balance Balance Sheet Assets = Liabilities + Owners' Equity Current Assets - Current liabilities = Working Capital Income Statement Income - Cost of Goods Sold = Gross Profit Gross Profit - Expenses = Net Income

Step 6: Financial Ratios Liquidity ratio Current Assets ÷ Current Liabilities = Liquidity ( or Current) Ratio ratio is greater than one positive Quick Ratio - ANSWER - Social Security - ANSWER -6.20% Medicare - ANSWER -1.45% Combine - ANSWER -7.65%

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