A contract includes a $7,500 tile allowance. The owner selects tile costing $8,650 before installation. Ignoring markup and tax because the contract says none apply, what allowance change should be documented?
Correct Answer
A) $1,150 increase.
The allowance adjustment is the selected cost minus the allowance: $8,650 - $7,500 = $1,150.
Why This Is the Correct Answer
The allowance adjustment is the selected cost minus the allowance: $8,650 - $7,500 = $1,150.
Why the Other Options Are Wrong
Option B: $7,500 increase.
$7,500 increase. is above the supported result for project contracts; it likely adds scope or money the rule does not allow.
Option C: $8,650 decrease.
$8,650 decrease. is above the supported result for project contracts; it likely adds scope or money the rule does not allow.
Option D: $16,150 increase.
$16,150 increase. is above the supported result for project contracts; it likely adds scope or money the rule does not allow.
Memory Technique
Preparing Written contract math: approved scope is the ruler for project contracts.
Reference Hint
Study anchor (closed-book): memorize Project contracts from CSLB 2026 Law Book; California contract administration practice / CSLB Law Book contract price and change documentation; know the rule or calculation trigger without relying on exam-room lookup.
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