Managing Construction 21

Question 1

On the other end of the volume scale, if a contractor takes on too much volume:

Answer 1

he will certainly see costs rise and profit margins shrink. COSTS and PROFIT will cross over at the high end of the HIGH REVENUE END OF THE REVENUE CURB.

Question 2

The construction business REWARDS THOSE WHO ARE:

Answer 2

DETAIL ORIENTED AND TIME SENSITIVE.

Question 3

In any FINANCIAL MANAGEMENT process, the first requirement is:

Answer 3

THE BUDGET.

Before the start of a business, THE BUSINESS PLAN WITH A BUDGET MUST BE CREATED.

Question 4

What is the typical labor content of a project?

Answer 4

35%

Question 5

What is the typical material content of a construction project?

Answer 5

35%

Question 6

What is the typical equipment content of a project?

Answer 6

5%

Question 7

What is the typical subcontract content of a project?

Answer 7

10%

Question 8

What is the typical OTHER DIRECT COST content of a project?

Answer 8

2%

Question 9

What is the typical GROSS PROFIT content of a project?

Answer 9

13%

Question 10

What is the typical OVERHEAD content of a project?

Answer 10

9%

Question 11

What is the typical INCOME BEFORE TAXES content of a project?

Answer 11

4%