Contracts & ExecutionQuestion 200 of 690
A contractor budgets a job at $250,000 total cost and is 60% complete. To stay on budget, total spending to date should be approximately:
a.$60,000
b.$150,000
c.$250,000
d.$100,000
Explanation
If progress and spending track together, spending at 60% complete should be about 60% of the $250,000 budget: 0.60 x $250,000 = $150,000. Spending much above this signals a possible overrun.
Practice all 690 questions free — no signup required.
Related questions on this topic
- On a unit-price paving contract at $3.20 per square foot, the field measures 9,500 square feet actually paved. What is the contractor entitled to be paid?
- A contractor finishes substantially all work on a private project and submits a proper final invoice for $30,000 (the retention). The owner refuses to pay although there is no genuine dispute. The contractor's BEST first step is to:
- An AIA-style "Application and Certificate for Payment" (commonly G702/G703) is used to:
- A homeowner signs a home improvement contract at the contractor's place of business after visiting the showroom. Which statement is most accurate?
- A 'no-damage-for-delay' clause in a contract typically:
- An indemnification (hold harmless) clause in a construction contract generally:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California CSLB Contractor License Law & Business Exam · How we review