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

1. A pay application shows $80,000 completed to date, 10% retainage, and $27,000 already certified in earlier periods. What's due this period?

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

2. What makes a pay-if-paid clause different from a pay-when-paid clause?

Pay-if-paid is about timing; pay-when-paid is about whether you get paidPay-if-paid makes the owner paying the GC a condition of the GC paying youThey mean the same thing in every statePay-when-paid lets the GC keep your retainage

3. On commercial work, how long after the work is done does a flooring sub commonly get paid?

Within the same weekOnly at project closeoutCommonly 60 to 90 days, minus retainageBefore the work starts

4. You'll offer a 10% early-payment discount and want to land on $200,000 if it's taken. What do you quote?

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

5. Why does buying on open terms from a supplier who gives notice on the project help you collect?

It makes retainage illegal on that jobA slow-paying GC then faces two parties with lien rights instead of oneThe supplier pays you directly when the GC is lateIt cancels any pay-if-paid clause

The money: what you're getting into

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