Module 10 quiz: Won it: contract to closeout

1. What does a “flow-down” clause in a subcontract do?
Covers water damage to finished floorsSets when retainage is releasedBinds you to the same obligations the GC has to the owner in its own contractPromises you'll be paid within 30 days
2. In your schedule of values, why list material and labor as separate lines for the big flooring products?
So you can bill for material that's delivered or stored, when the contract allows itIt lowers the retainage rateIt's required by law on every jobSo you can move money between lines later
3. In what order is the math done on a pay application?
Amount due → retainage → work completed so farWork completed so far → minus retainage → minus what you were already approved for → amount dueRetainage → amount due → work completed so farWhat you were already approved for → work completed so far → retainage
4. You find an unexpected slab problem that needs extra work. What comes first?
Do the work now and bill it next monthAbsorb the cost to keep the relationshipAdd it to your next pay application as a new lineGive written notice by the subcontract's deadline, before doing the work
5. When should you sign a final unconditional lien waiver, which gives up your lien rights for good?
When you send the final pay applicationAfter your final payment, including retainage, has actually clearedWhen the job is substantially completeWhen the punch list is signed off

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Won it: contract to closeout