Business FinancesQuestion 53 of 1605
Before starting a project, a contractor should prepare a schedule of values in order to:
a.Calculate the contractor's overhead rate
b.Establish milestone payment amounts tied to completed work
c.Determine subcontractor licensing requirements
d.Set the overtime schedule for workers
Explanation
A schedule of values breaks the contract amount into line items by trade or work phase. It becomes the basis for progress payment requests (AIA G702/703), ensuring payments match completed work.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)