A contractor discovers a code violation during construction that requires additional work costing $8,500. The original contract was $125,000. What percentage increase does this represent?
Correct Answer
A) 6.8%
($8,500 ÷ $125,000) × 100 = 6.8% increase over the original contract amount.
Why This Is the Correct Answer
Dividing the additional cost by the original contract amount and multiplying by 100 gives the percentage increase: $8,500 ÷ $125,000 = 0.068 × 100 = 6.8%. This is the correct formula for percentage change.
Why the Other Options Are Wrong
Option B: 7.3%
7.3% is not derived from any standard calculation using these two figures. It may result from a rounding or arithmetic error.
Option C: 8.1%
8.1% does not correspond to the correct formula. It may result from inverting or incorrectly applying the division.
Option D: 8.5%
8.5% confuses the dollar amount of the additional work ($8,500) with a percentage. The $8,500 is a dollar figure, not a percentage value.
Memory Technique
Remember: Percentage Increase = (Change ÷ Original) × 100. 'Change over Original' — the smaller number always goes on top when you're finding what fraction something increased by.
More Alabama Questions
An Alabama licensed contractor is required to complete continuing education. How many hours are required for license renewal?
According to Alabama building codes, what is the maximum allowable deflection for floor joists under live load?
Which continuing education topic is mandatory for Alabama contractor license renewal?
Under Alabama building codes, which edition of the International Building Code (IBC) is currently adopted?
Under Alabama law, what is the statute of limitations for filing a breach of contract claim against a contractor?
A homeowner hires you for a $25,000 kitchen renovation but refuses to pay the final $5,000. You properly file a mechanics' lien. The homeowner wants to sell the house. What happens to your lien?
Which continuing education topic is specifically mandated by Alabama for contractor license renewal?
A contractor discovers that their Alabama contractor license expired 45 days ago. What is the consequence under Title 34-8?
Your client wants to add a 500 sq ft addition to their home. You discover during construction that the existing electrical system doesn't meet current Alabama electrical code. What is your obligation?
A contractor is building a residential foundation in Alabama clay soil. The soil report indicates expansive clay with a plasticity index of 35. What is the minimum recommended foundation depth?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A contractor files a mechanics lien in Alabama for $45,000 on January 15th. If the property owner wants to bond around the lien, what is the minimum bond amount required?
Next Question
Under Alabama contractor licensing law, a contractor receives a complaint from a homeowner. The contractor fails to respond within the required timeframe. What disciplinary action can the Alabama Licensing Board take?