Practice Test Geeks(CRC) Certified Residential Contractor Practice Test
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Cost Estimation & Budgeting Flashcards

7 cards from real CRC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. A contractor tracks that their crews install drywall at a rate of 450 sq ft per crew per day. A job has 6,300 sq ft of drywall. How many crew-days should be budgeted?

    Answer: 14 crew-days

    6,300 sq ft ÷ 450 sq ft/crew-day = 14 crew-days.

  2. When should a contractor use 'assemblies estimating' rather than unit-price estimating?

    Answer: For faster preliminary estimates where speed is prioritized over precision

    Assemblies estimating groups related items together (e.g., a wall assembly) for faster estimates, trading some precision for speed.

  3. A foundation subcontractor quotes $22,000 for a job. The prime contractor marks this up 10% for overhead and 5% for profit. What is the total cost passed to the owner?

    Answer: $25,410

    Overhead markup: $22,000 × 1.10 = $24,200; Profit markup: $24,200 × 1.05 = $25,410.

  4. In residential construction, 'soft costs' typically include:

    Answer: Permits, architectural fees, and financing costs

    Soft costs are non-construction expenses like design fees, permits, inspections, and financing that support the project.

  5. A residential contractor uses historical data showing kitchen remodels average $125/sq ft. A client wants an 180 sq ft kitchen remodel. What is the preliminary estimate, and what accuracy range is typical for this method?

    Answer: $22,500 ± 15-20%

    The estimate is $22,500, but square-foot/historical estimates typically carry a ±15-20% accuracy range.

  6. A contractor discovers during framing that the soil requires unexpected additional footings costing $8,000. This cost was not in the original contract. This situation is best described as:

    Answer: A differing site condition that warrants a change order

    Unforeseen subsurface conditions that differ materially from what was represented constitute a differing site condition, entitling the contractor to a change order.

  7. What is the purpose of a 'bid bond' in the residential contracting bidding process?

    Answer: It ensures the contractor will honor the bid price and execute the contract if awarded

    A bid bond guarantees the owner that the contractor will enter into the contract at the bid price if selected.