This month's approved earned value is $240,000, and the contract retains 10 percent. What net progress payment is due before prior-payment adjustments?
Correct Answer
D) $216,000
Retainage is $240,000 x 10% = $24,000, so net payment is $240,000 - $24,000 = $216,000. Other choices report only retainage, use an unsupported round number, or omit retainage.
Why This Is the Correct Answer
Retainage is $240,000 x 10% = $24,000, so net payment is $240,000 - $24,000 = $216,000. Other choices report only retainage, use an unsupported round number, or omit retainage.
Why the Other Options Are Wrong
Option A: $24,000
retainage calculation, choice a: $24,000 is only the retainage withheld, not the net payment.
Option B: $200,000
retainage calculation, choice b: $200,000 uses the wrong retainage base or stops before netting retainage; the.
Option C: $240,000
retainage calculation, choice c: $240,000 is wrong because $240,000 uses the wrong retainage base or stops before netting retainage; the.
Memory Technique
Store retainage calculation with its last math move; nearby answers are usually unfinished versions of $216,000.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Retainage in progress payments" to confirm that Retainage is $240,000 x 10% = $24,000, so net payment is $240,000 - $24,000 = $216,000.
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