The current application shows $680,000 total completed and stored to date. Retainage is 10 percent, and previous payments total $420,000. What current payment is due?
Correct Answer
B) $192,000
Net earned after retainage is $680,000 x 90% = $612,000. Current payment is $612,000 - $420,000 = $192,000. Other choices omit previous payments, omit retainage, or use the net earned amount.
Why This Is the Correct Answer
Net earned after retainage is $680,000 x 90% = $612,000. Current payment is $612,000 - $420,000 = $192,000. Other choices omit previous payments, omit retainage, or use the net earned amount.
Why the Other Options Are Wrong
Option A: $218,000
progress payment less previous, choice b: $218,000 adds an extra unstated add-on/subtraction; the numeric gap is $26,000.
Option C: $260,000
progress payment less previous, choice c: $260,000 is produced by $680,000 - $420,000. The error is using that partial/alternate setup.
Option D: $612,000
progress payment less previous, choice d: $612,000 is an intermediate from the steps (Net earned after retainage is 680000 x 90% = 612000.); the calculation continues to $192,000.
Memory Technique
Remember progress payment less previous as "base, adjustment, final unit"; the last unit should read $192,000.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Progress payment with retainage and previous payments" to confirm that Net earned after retainage is $680,000 x 90% = $612,000.
More NASCLA Questions
Bid instructions require bid security with each sealed bid. Which purpose should the estimator associate with that requirement?
A wood deck surface has 320 sf of coverage. Boards have a 5-1/2 in. actual face width, and the order includes an 8 percent cutting allowance. What linear footage is closest?
Using the dimensions shown for the stabilized construction entrance, what is the plan area?
A reroof area requires 14,720 sf of rigid insulation. Boards are 4 ft by 8 ft, and the order includes 5 percent waste. How many boards are needed?
Two addenda revise the drawings before bid day. What must a responsive bidder normally do with those addenda?
A utility trench is 180 ft long, 3 ft wide, and 7 ft deep with vertical sides inside a trench shield. What excavation volume is required?
A 120 ft long Type C trench is cut with a 4 ft bottom width and a 6 ft depth. If side slopes are 1-1/2 horizontal to 1 vertical, what excavation volume is closest?
A storm pipe run needs 240 ft of bedding, 4 ft wide and 6 in. thick. Including a 10 percent ordering allowance, how many cubic yards of bedding aggregate are needed?
A mass excavation produces 1,180 loose cubic yards of material for off-site disposal. End-dump trucks can haul 18 loose cubic yards per trip. What truck count is required?
An asphalt-shingle roof has a slope of 3:12. Under the IBC low-slope asphalt-shingle provisions, what underlayment arrangement is required?
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