Tennessee Contractor License Exam — All Questions

A Tennessee contractor's job costs $60,000, and she wants a 25% margin on the selling price. What is the correct bid price?

• a.$75,000
• b.$80,000✓
• c.$72,000
• d.$48,000

For a target margin, divide cost by (1 - margin): $60,000 / (1 - 0.25) = $60,000 / 0.75 = $80,000. Multiplying cost by 1.25 gives $75,000, which is only a 20% margin - the recurring markup-vs-margin trap.Margin: price = cost / (1 - margin)

Tennessee's bidding statute requires that a bid on a project requiring a license disclose what about the bidder (for many bids, on the outside of the bid envelope)?

• a.The bidder's Social Security number
• b.The bidder's license number, the classification, and the expiration date of the license✓
• c.Nothing; Tennessee bids are anonymous
• d.The owner's most recent tax return

Under Tennessee's bid law, a bid must include the contractor's license number, the classification allowing the work, and (for many public bids) that information on the bid envelope. A bid that omits it can be thrown out, because the contractor must be licensed to bid at all.T.C.A. §62-6-119 (bid law: license information required)

How many cubic yards of concrete are needed for a slab 20 ft by 30 ft, poured 6 inches thick (before any waste factor)?

• a.100 cy
• b.33.3 cy
• c.22.2 cy
• d.11.1 cy✓

Convert thickness to feet (6 / 12 = 0.5 ft), then cubic yards = (length x width x thickness) / 27 = (20 x 30 x 0.5) / 27 = 300 / 27 = about 11.1 cy. There are 27 cubic feet in a cubic yard.Quantity takeoff: cubic yards = (L x W x thickness in ft) / 27