Nevada Contractor License Exam — All Questions
2 questions
A Nevada contractor's job has $80,000 of total cost, and she wants a 20% profit margin on the selling price. What must the bid (selling price) be?
- a.$96,000
- b.$100,000✓
- c.$88,000
- d.$16,000
For a target margin, divide cost by (1 - margin): $80,000 / (1 - 0.20) = $80,000 / 0.80 = $100,000. Simply adding 20% to cost ($96,000) yields only a 16.7% margin - the classic markup-vs-margin trap.Construction Business & Law Manual for Nevada (margin: price = cost / (1 - margin))
In preparing a competitive bid, what is the primary purpose of a quantity takeoff?
- a.To set the profit margin the owner will accept
- b.To record the retainage the owner will withhold
- c.To measure and count the material and work quantities shown on the plans so they can be priced✓
- d.To determine the contractor's monetary limit with the Board
A quantity takeoff is the systematic measuring and counting of the materials and work quantities from the drawings and specifications, so each item can be priced. It is the foundation of an accurate estimate; errors here flow straight into the bid.Construction Business & Law Manual for Nevada (quantity takeoff)