Sample questions

NASCLA Sample Questions

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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.

Sample 5

What is overhead in a contractor bid?

  1. An allowance reserved for one incompletely defined scope item
  2. Labor and material installed as a specific item of work
  3. Profit earned after all direct and indirect costs are covered
  4. General business costs needed to operate

Answer: D. Overhead includes business costs that are not simply one job's direct labor or materials.

Sample 6

Which item belongs in job-cost tracking?

  1. Labor hours
  2. The company's annual advertising budget with no job allocation
  3. The owner's target completion date without recorded cost
  4. The estimator's preferred markup on future projects

Answer: A. Labor, material, equipment, subcontractor, and overhead costs are common job-cost inputs.

Sample 7

Why are permits important?

  1. They replace every required inspection after work begins
  2. They can be required before regulated work begins
  3. They guarantee that the permitted design will have no field conflicts
  4. They transfer code compliance responsibility entirely to the inspector

Answer: B. Permit requirements vary, but regulated work often requires approval before or during construction.

Sample 8

What does retainage usually refer to?

  1. A payment released before any work is performed
  2. A material allowance added to every change order
  3. A portion of payment held until contract conditions are met
  4. A warranty reserve controlled solely by the subcontractor

Answer: C. Retainage is commonly used to hold back a portion of payment until milestones or completion.

Sample 9

Which document usually supports a progress payment request?

  1. A daily report without quantities, values, or billing period
  2. A supplier quotation unrelated to installed work
  3. A preliminary estimate that was never incorporated into the contract
  4. Invoice or pay application

Answer: D. Invoices and pay applications document payment requests tied to work or milestones.

Sample 10

Why should subcontractor agreements be written?

  1. To clarify scope, schedule, payment, and responsibilities
  2. To permit changed work without notice or authorization
  3. To remove insurance, safety, and schedule obligations from the subcontractor
  4. To make the prime contract's requirements inapplicable to subcontracted work

Answer: A. Written agreements reduce ambiguity around subcontractor obligations.

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NASCLA vs State Contractor Exams

Compare NASCLA contractor exam prep with state contractor license exam requirements and business law practice.

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NASCLA Sample Questions with answer explanations and a link to the interactive NASCLA Practice Exam free practice test. The site includes practice paths for EPA 608, CDL, IBEW aptitude, journeyman electrician, CWI welding inspector, NASCLA, NCCCO, NHIE, and plumbing license exams.

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