Planning & EstimatingQuestion 617 of 700
A progress payment application shows $80,000 of work completed this period. The contract allows 10 percent retention. How much should the owner PAY for this period after retention is withheld?
a.$8,000
b.$88,000
c.$72,000
d.$80,000
Explanation
Retention withheld = 10% x 80,000 = 8,000. Payment this period = 80,000 - 8,000 = 72,000. Correct answer is $72,000. '$8,000' is the amount retained, not paid. '$88,000' wrongly adds retention. '$80,000' ignores retention entirely.
Practice all 700 questions free — no signup required.
Related questions on this topic
- In construction estimating, which BEST describes the difference between fixed and variable overhead?
- A contractor's annual overhead is $120,000 and expects about $600,000 in direct job costs for the year. To recover overhead evenly, approximately what percentage should be added to each job's direct cost for overhead?
- On a lump-sum project, what is the PRIMARY purpose of the schedule of values?
- A grading and utility project has uncertain quantities of rock excavation that cannot be measured accurately until digging begins. Which contract type is BEST suited?
- When is a cost-plus-fee contract MOST appropriate?
- How do an 'allowance' and a 'contingency' differ in a bid?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California CSLB General Building (B) Trade Examination · How we review