NASCLA Commercial General Building Contractor Exam — All Questions

A candidate passes the NASCLA Accredited Commercial General Building Contractor examination. What does passing it accomplish toward licensure?

• a.It grants a contractor license automatically in every accepting state
• b.It satisfies both the trade and the business/law requirements in one exam
• c.It satisfies the trade/technical portion in accepting states; each state's business and law licensing requirements still apply separately✓
• d.It replaces the need for any state license

The NASCLA Accredited exam covers the commercial building trade/technical knowledge and is accepted for that portion by roughly 18 jurisdictions. It does not license the candidate by itself: each state's separate business and law exam, financial, and application requirements still apply.NASCLA Accredited Program scope

On a competitively bid commercial project, what does a bid bond protect, and whom does it protect?

• a.It protects the owner if the low bidder refuses to enter the contract, by covering the difference to the next bidder up to the bond amount✓
• b.It protects the contractor's employees for on-the-job injuries
• c.It guarantees subcontractors and suppliers will be paid
• d.It protects the surety against the owner

A bid bond protects the owner: if the successful low bidder backs out, the surety covers the owner's added cost (typically the difference to the next bidder) up to the bond's penal sum. A payment bond protects subs and suppliers; a performance bond assures completion.Bid bond (surety three-party guarantee)

A general contractor stops paying its subcontractors on a bonded public project. Which bond gives the unpaid subs a remedy?

• a.The bid bond
• b.The maintenance bond
• c.The performance bond
• d.The payment bond✓

The payment bond guarantees that subcontractors and suppliers are paid, so it is the unpaid subs' remedy. The performance bond assures the owner the work is completed; the bid bond addresses a bidder backing out. Each of the three bonds protects a different party.Payment bond vs. performance bond (AIA A312)

During construction the owner directs a change that adds scope. What document formally modifies the contract sum and time for that change?

• a.A submittal
• b.A change order signed by the owner and contractor✓
• c.A daily field report
• d.A certificate of substantial completion

A change order is the written, signed agreement that modifies the contract's scope, price, and/or time. Performing extra work without a signed change order risks non-payment, so contractors document changes before proceeding whenever possible.Change order (contract modification)

An owner withholds 10% from each progress payment on a commercial project. What is the primary purpose of this retainage?

• a.To give the owner leverage and security that the contractor will complete the work and correct deficiencies✓
• b.To pay the architect's design fee
• c.To fund the contractor's payroll taxes
• d.To cover the building permit cost

Retainage is a percentage withheld from each progress payment and released after completion. It protects the owner by giving the contractor a financial incentive to finish and to correct punch-list items before the withheld money is paid.Retainage on progress payments

A change to the bidding documents is issued to all bidders before bids are submitted. What is this document called?

• a.A change order
• b.A submittal
• c.An addendum✓
• d.A punch list

An addendum modifies the bidding documents before bids are opened and is issued to all bidders so everyone prices the same scope. A change order, by contrast, modifies the contract after it is signed. Confusing the two is a common exam trap.Contract documents / addenda vs. modifications