Module 1 quiz: The money: what you're getting into

1. Your pay application shows $80,000 of work completed so far. Retainage is 10%, and you've already been approved for $27,000 on earlier bills. How much is due on this bill?

$45,000$53,000$72,000$80,000

2. What's the difference between a “pay-if-paid” and a “pay-when-paid” clause?

Pay-if-paid is about timing; pay-when-paid is about whether you get paidPay-if-paid means the GC only has to pay you if the owner pays the GCThey mean the same thing in every statePay-when-paid lets the GC keep your retainage

3. On a typical commercial job, how long does it take to get paid for work you've done?

Within the same weekOnly at the end of the projectCommonly 60 to 90 days, minus retainageBefore the work starts

4. You offer a 10% discount for early payment, and you still want to end up with $200,000 if the client takes it. What price do you quote?

$180,000$210,000$220,000About $222,222

5. Your supplier sells you material on credit and sends the required lien notice on the project. How does that help you get paid?

It makes retainage illegal on that jobIf the GC pays slowly, it now faces two companies that can file a lien, not just youThe supplier pays you directly when the client is lateIt cancels any pay-if-paid clause

The money: what you're getting into

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