An allowance for tile is $6,200. The owner selects a tile package that costs $5,450, and the contract says no markup applies to allowance credits. What adjustment should be documented?
Correct Answer
D) $750 credit.
The selected tile is $750 below the allowance, so the contract should document a $750 credit.
Why This Is the Correct Answer
The selected tile is $750 below the allowance, so the contract should document a $750 credit.
Why the Other Options Are Wrong
Option A: $750 increase.
$750 increase. is not aligned with the supported result for project contracts; it has the wrong label or classification even if the number looks close.
Option B: $5,450 credit.
$5,450 credit. is above the supported result for project contracts; it likely adds scope or money the rule does not allow.
Option C: $11,650 increase.
$11,650 increase. is above the supported result for project contracts; it likely adds scope or money the rule does not allow.
Memory Technique
Reconciling Allowance contract math: approved scope is the ruler for project contracts.
Reference Hint
Study anchor (closed-book): memorize Project contracts from CSLB 2026 Law Book; CSLB Home Improvement Contracts / Business and Professions Code Section 7159; know the rule or calculation trigger without relying on exam-room lookup.
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