1. A contractor pays a workers' compensation rate of $0.08 per $100 of office employee
payroll, $0.15 per $100 of field supervisor payroll, and $0.26 per $100 of field
employee payroll. Total office employee payroll for the year is $25,000. Total field
supervisor payroll is $48,000. Total field employee payroll is $225,000. The
contractor receives a discount of 5% of total premiums for having a safety program in
place. The total workers' compensation for the year is... - ANS-More than $600
2. A contractor puts in a claim under a comprehensive standard general liability policy.
The policy has no additional coverage, riders, or floaters, and has a $500 deductible
per occurrence. The claim is for a job-site accident that caused $2,000 of injuries to
employees, $1,800 of injuries to a pedestrian, $2,300 damage to the contractor's
equipment, and $1,750 loss of project materials purchased by the contractor. The
insurance company is liable for... - ANS-$1,300
3. A cost plus contract calls for the contractor to receive direct costs for labor and
materials, and a markup of 20% of direct costs. The contractor is also to receive a
bound of 15% of savings if total cost to the owner is less than $80,000, and a bonus
of $1,000 per day if the project is completed early. Final costs for direct labor and
materials are $60,000. The project is completed 3 days early. What is the total
amount due to the contractor? - ANS-Between $75,001 and $80,000
4. A lump sum contract on a project has a total contract price of $160,000. Retainage
has been held back at 10%. The contractor has received progress payments for 75%
of the project. The contractor submits a request for final payment for the new
completed project. The final payment amount should be for... - ANS-More than
$50,000
5. A non-exempt employee of a contractor covered by the Fair Labor Standards Act
works 60 hours during a workweek. The agreement is to pay the employee $400
each week regardless of the numbers of hours worked. What should be the
employee's gross pay for the worksheet? - ANS-$700.50
6. A permit is obtained on Friday, May 1. The materials are to be delivered May 8. The
materials are needed when labor begins on May 11. It is estimated that 15 days of
labor are REQUIRED. The crew will work every day, including weekends and
holidays. The project is scheduled to be completed on June 8. How many float days
are available for the labor for this project? - ANS-13
7. An insurer offers the contractor a 20% per year reduction in premiums if the
contractor has a defied safety program in place. The insurer's standard rates are $8
per $1,000 of coverage. The contractor has $300,000 in coverage. How much in
premiums will the contractor save a 3-year period by having a defined safety program
in place? - ANS-Between $1,001 and $1,500
8. For 1 month a company bills out $38,000 in completed work, and receives $22,000 in
payments plus $8,000 from the previous month's billings. They pay their total bill of
$26,000 to supply houses for this month's purchases, and another $5,000 to supply
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