The contract carried 900 cy of undercut at $42/cy. Final measured quantity is 760 cy. What deductive adjustment is due for the underrun?
Correct Answer
C) $5,880 deduct
The underrun is 900 - 760 = 140 cy. Deduct is 140 x $42 = $5,880. Other choices use the final quantity, original quantity, or quantity difference without the unit price.
Why This Is the Correct Answer
The underrun is 900 - 760 = 140 cy. Deduct is 140 x $42 = $5,880. Other choices use the final quantity, original quantity, or quantity difference without the unit price.
Why the Other Options Are Wrong
Option A: $31,920 deduct
unit price underrun, choice b: $31,920 deduct is wrong because $31,920 deduct prices 760 units at $42, using 760 from the stem instead of the accepted quantity 140. Unit-price check.
Option B: $37,800 deduct
unit price underrun, choice c: $37,800 deduct prices 900 units at $42, using 900 from the stem instead of the accepted quantity 140. Unit-price check.
Option D: $1,400 deduct
unit price underrun, choice d: $1,400 deduct prices 33.33 units at $42.
Memory Technique
Keep a field note beside unit price underrun: if one number is skipped, the option drifts away from $5,880 deduct.
Reference Hint
Open Construction Project Management, 5th Ed. (2022); use the index entry or section for "Unit-price underrun adjustment" to confirm that The underrun is 900 - 760 = 140 cy.
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