Focused practice

NASCLA business law practice test

Contracts, bonds, change orders, liens, insurance, and project documentation.

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What this page targets

Use this page to drill NASCLA business law practice test concepts before opening the full sample set. Start with the focus below, answer a few questions, then review the explanation for each miss.

Practice focus: Contracts, bonds, change orders, liens, insurance, and project documentation.

Sample 1

What is a bid bond mainly used to support?

  1. The owner's obligation to accept the lowest submitted price
  2. The contractor's obligation to pay every subcontractor after award
  3. The surety's guarantee that all project work is defect-free
  4. The bidder's obligation to enter the contract if awarded

Answer: D. A bid bond gives the owner financial assurance that the selected bidder will honor the bid under the stated conditions.

Sample 2

A bid should usually be built from which foundation?

  1. Scope, quantities, labor, materials, overhead, and profit
  2. Material quotations alone with labor and equipment omitted
  3. A competitor's total carried forward without a quantity takeoff
  4. The owner's budget without reconciling it to the defined scope

Answer: A. A defensible bid accounts for the full cost structure and scope.

Sample 3

Why are change orders documented?

  1. To remove the contractor's duty to give notices required by the contract
  2. To record approved changes to scope, cost, or schedule
  3. To replace the original contract and all incorporated documents
  4. To authorize every field conversation without pricing or schedule review

Answer: B. Change orders help document agreed changes and reduce disputes.

Sample 4

Why should a contractor document scope clearly?

  1. To eliminate the need to review drawings and specifications
  2. To guarantee that no differing site condition can occur
  3. To reduce disputes over what is included
  4. To transfer every coordination duty to the owner

Answer: C. Clear scope language helps define expectations and reduce disputes.

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