Module 10 quiz: Won it: contract to closeout

1. What is a flow-down clause in a subcontract?

A clause about water damage to finished floorsA retainage release scheduleA clause binding you to the obligations the GC owes the owner under the prime contractThe GC's promise to pay within 30 days

2. Why separate material from labor on a schedule of values for major products?

So delivered or stored material can be billed where the contract allowsIt lowers the retainage rateIt's required by law on every jobSo you can move money between lines later

3. What's the order of the math on a pay application?

Amount due → retainage → completed to dateCompleted to date → retainage → less previous certificates → amount dueRetainage → amount due → completed to datePrevious certificates → completed to date → retainage

4. You find an unexpected slab condition that needs extra work. What comes first?

Do the work now and bill it next monthAbsorb it to keep the relationshipAdd it to the next pay application as a new lineGive written notice within the subcontract's deadline, before doing the work

5. When should you sign a final unconditional lien waiver?

When you submit the final pay applicationAfter final payment, including retainage, has actually clearedAt substantial completionWhen the punch list is signed off

Won it: contract to closeout

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