NASCLA Contractors Guide Questions and Answers, Exams of Construction

Download NASCLA Contractors Guide Questions and Answers and more Exams Construction in PDF only on Docsity!

NASCLA Contractors Guide questions

with correct answers

3 elements of a business plan - ANSWER --cover page -executive summary -company summary -products and services -market analysis -marketing strategy -financial plan advantages of sole proprietorship - ANSWER --minimal legal restrictions -simple ownership form -low start up costs -sole ownership of profits -freedom in decision making process disadvantages of sole proprietorship - 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 who has limited liability in the company? - ANSWER -limited partners advantages of a general partnership - ANSWER --ease of formation -direct profit rewards -larger management base than that of a sole proprietorship

disadvantages of a general partnership - 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 - ANSWER --invitation to bid -bid instructions -bid forms -supplements what is an invitation to bid - ANSWER -gives a brief overview of the project, deadlines, and general requirements bid instructions - ANSWER -contain specifics of how the bis should be completed and submitted bid forms - ANSWER -bid sheet bid schedule bidder's questionnaire on the experience financial responsibility and capability copy of the contract supplements - ANSWER -includes all items important to the overall bid process such as property and soil analysis what is the estimating checklist helpful for? - ANSWER -when setting up your estimating framework to make sure that you have accounted for all materials and labor what is the most effective estimating method? - ANSWER -quantity take off method

what is labor burden - ANSWER -(30% of labor cost) medicare and social security federal unemployment insurance worker's compensation liability insurance state unemployment insurance company benefits (health insurance, vacations) what are indirect costs - ANSWER -small tools and pickup trucks what are allowances - ANSWER -items not specified in the project plans such as carpeting, fixtures, and lighting) what are contingencies - ANSWER -percentages added to the estimate to protect the contractor if an unanticipated problem occurs what is project overhead - ANSWER -cost that covers items necessary to complete the project but not directly associated with the labor and materials examples of project overhead - ANSWER -bonds, temporary storage, temporary office, security guard, utilities, dumpsters, and portable toilets what is company overhead - ANSWER -the cost of doing business (expenses necessary to keep the business running) examples of company overhead - ANSWER -office rent accounting fees taxes telephone legal fees

administrative labor what is mark up - ANSWER -applied to the direct cost of the project what happens if mark up is too low - 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 - ANSWER -generally prepared by the architect using cost models from previous projects what is the benefit of a job cost recording system - ANSWER -helpful in the estimating and project management what are the 4 required elements of a contract - ANSWER -offer and acceptance consideration competent parties legal purpose breach of contract occurs when a party... - ANSWER -refuses to perform the contract performs an act prohibited by the contract prevents the other party from performing its obligations idemnification - ANSWER -absolves the indemnified party from any payment for losses and damages incurred by a third party indemnification clauses must be... - ANSWER -examined carefully to ensure the proper liability is distributed between the contractor and the owner 3 types of construction contracts - ANSWER -lump sum unit price

cost plus lump sum contract - ANSWER -contractor agrees to complete the project for a predetermined, specified price unit-price contract - ANSWER -used for jobs where the extent of work cannot be fully determined or the actual quantities of required items cannot be accurately calculated in advance cost plus contract - ANSWER -contractor is reimbursed for the actual cost of labor and materials and is paid a markup fee for overhead and profit a written agreement between the owner and contractor to change the contract - ANSWER -change order why are oral agreements bad? - ANSWER -not a good way to do business! get it in writing legal interpretation - ANSWER -if the contract cannot be clarified based on this method, the interpretation will go against the party who wrote it 3 types of scheduling methods - ANSWER -calendar bar chart critical path dates, delivery dates, payment schedules and employee vacations are what type of scheduling? - ANSWER -calendar what is the main weakness of bar chart and calendar scheduling? - ANSWER -do not show the interdependencies of activities shows the activity duration and sequence of tasks to be completed - ANSWER -bar chart scheduling

shows the relationship between tasks - ANSWER -critical path method of scheduling what is not a part of cash management? - ANSWER -bidding bidding is a part of what? - ANSWER -project management prohibited hiring questions - ANSWER -how old are you do you have any disabilities are you pregnant are you married do you have children religion sexual orientation ethnicity employee documentation - ANSWER -I- w- w- state tax form employment application policy signoffs emergency notification forms what applies to employers that have one or more employees? - ANSWER -fair labor standards act fair labor standards act - ANSWER -prescribes standards for the basic minimum wage and overtime pay how many hours are in a work week - ANSWER - 168

not following the FSLA results in what? - ANSWER -penalties how many days do you have to complete I-9 forms? - ANSWER - 3 how long must you keep immigration and I-9 forms? - ANSWER -3 years after the date of hire americans with disabilities act - ANSWER -applies to employers with 15+ employees prohibits discrimination of persons with disabilities FMLA allows employees to do what? - ANSWER -take up to 12 weeks unpaid job-protected leave each year creating a safe work environment is a good way to what? - ANSWER -run your business if you have more than 10 employees your Emergency Action plan must be? - ANSWER -written (NOT ORAL) when is OSHA form 300 not required? - ANSWER -when there are fewer than 10 employees what are the 3 OSHA forms for employers with over 10 employees? - ANSWER -OSHA 300 OSHA 300A OSHA 301 how long do you keep OSHA 300? - ANSWER -5 years if a death occurs, how many hours do you have to report that to OSHA - ANSWER - 8 environmental law includes... - ANSWER -clean water act clean air act

endangered species act national environmental policy act national historic preservation act what do contractors give to homeowners of homes that are pre-1978 - ANSWER -protect your family from lead in your home pamphlet source documents - ANSWER -cash receipts credit card receipts customer invoices purchase orders materials invoices deposit slips time cards Miller Act - ANSWER -Require performance and payment bonds on all federal construction projects greater than $100k Davis-Bacon Act - ANSWER -Requires payment of prevailing wages on federally-financed or assisted projects. Walsh-Healey Public Contracts Act - ANSWER -Requires payment of minimum wage and overtime on contracts that provide goods to the federal givernment Youth minimum wage - 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) - ANSWER -Minimum wage, youth minimum wage, overtime rate, pay at regular intervals, age restrictions (hours or work, or dangerous work)

I-9 form requirements - ANSWER -Within 3 days of hire; kept for 3 years after hire or 1 year after employment ends (whichever is later) FLSA youth limits - ANSWER -Limits hours under 16 can work; forbids children under 18 from dangerous jobs FLSA criminal penalties - ANSWER -1st offense, fine up to $10k; 2nd imprisonment FLSA civil penalties - ANSWER -Up to $1,100 per violation 1099 Requirements - ANSWER -Reporting payments of $600 or more to independent contractors