Florida Contractor Practice Exam

A Contractor has been paid $71,837.00 on a $1,400,325.00 contract total cost. Assuming a 10% retainage, what is the percentage of completion of this project?

1. 0.57%

2. 5.7%

3. 0.51%

4. 5.1%

The correct answer is: 5.7%

To determine the percentage of completion for the project, we first need to calculate the amount that can be considered complete based on the payments made and the retainage withheld. Given that retainage is set at 10%, the amount retained from the total contract payment is computed as follows: 1. Calculate the total amount that would be paid without retainage: Total contract amount is $1,400,325.00. The retainage amount is 10%, so the payout without retainage would be 90% of the total contract. \( \text{Total after retainage} = 1,400,325 \times 0.90 = 1,260,292.50 \) 2. The contractor has already been paid $71,837.00. 3. To find the percentage of completion, we relate the sum that the contractor has received to the total amount allowed for the work completed (which is the amount after deducting the retainage): The formula for percentage of completion is: \( \text{Percentage of completion} = \left( \frac{\text{Paid Amount}}{\text{Total Amount After Retainage}} \right) \times 100 \)