Procurement & Contracting Requirements
The single largest domain on the NASCLA exam (31 of 115 items) covers how commercial projects are bid, awarded, bonded, and modified. This chapter reviews bidding documents, the three surety bonds, change orders, and retainage.
What NASCLA is (and is not)
The NASCLA Accredited Commercial General Building Contractor exam tests the trade and technical knowledge to build commercial structures. It is accepted for the trade/technical portion of licensure by roughly 18 jurisdictions, but it does not license a contractor by itself: each state's separate business and law exam, financial requirements, and application still apply. Treat NASCLA as the portable trade credential, not a complete license.
Bidding documents and the three bonds
Before bids are opened, changes to the bidding documents are issued to all bidders as addenda so everyone prices the same scope. Three surety bonds run to different parties: a bid bond protects the owner if the low bidder backs out; a performance bond assures the owner the work is completed; and a payment bond guarantees that subcontractors and suppliers are paid. Knowing which bond protects whom is a recurring exam theme.
Change orders and retainage
A change order is the written, signed modification of the contract's scope, price, or time; performing extra work without one risks non-payment. Retainage is a percentage withheld from each progress payment and released after completion, giving the owner security that the contractor will finish and correct punch-list items. An addendum modifies the bidding documents before award; a change order modifies the contract after award.