Contracts & ExecutionQuestion 167 of 690
A contractor completes $80,000 of work in a billing period. The contract provides for 10% retention. How much should the contractor expect to receive for this progress payment?
a.$80,000
b.$8,000
c.$88,000
d.$72,000
Explanation
The owner withholds 10% retention: $80,000 x 10% = $8,000 retained, so the current payment is $80,000 - $8,000 = $72,000. The $8,000 retention is paid later upon completion.
Practice all 690 questions free — no signup required.
Related questions on this topic
- After receiving retention from the owner, a general contractor on a private works project must pass through each subcontractor's retention within:
- In a construction contract, a "schedule of values" is BEST described as:
- On a $500,000 contract, the schedule of values shows framing as 18% of the total. If framing is 50% complete, how much may the contractor bill for framing this period?
- The primary purpose of job costing during a project is to:
- A job was estimated at $40,000 in labor but actual labor came in at $48,000. This $8,000 difference is BEST described as:
- When a general contractor relies on a subcontractor's bid to prepare its prime bid, the sub generally:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California CSLB Contractor License Law & Business Exam · How we review