The Continuation Sheet - NCARB Practice Test Question

Here is a question from the practice exam:

Refer to the exhibit.

An architect is reviewing a contractor's application for payment and notes that retainage amounts are missing from the G703 Continuation Sheet. The owner-contractor agreement stipulates the following variable retention rates:

10% retainage shall be withheld from each application for payment for all hard costs of construction, which is defined as the cost of materials and the labor and equipment necessary to install them.
5% retainage shall be withheld for all overhead and other soft costs.

What is the total amount of retainage that should be withheld from the application for payment?

I understand how to use the information from column E on the continuation sheet. What I am uncertain about is why the explanation of the correct answer says not to use any of the information in column F. The first bullet point clearly states to include the cost of materials, and the A201 clearly states that this includes materials stored on site, or even off site if the owner agrees.

Column E only has $0 entered until the total which includes $5,100, which is confusing me. At first, I thought maybe the materials were bought in a previous month and are still being stored, thus their cost would have been included in column E (or F maybe?) of a previous continuation sheet, and thus the owner would have already payed for it. But this seems to be the first application for payment, column D, "from previous application," if filled entirely with $0. If there is no previous payment, then the stored materials should be bought by the owner under this application for payment, at least that was my assumption.

My question essentially is why we don't include column F, materials presently stored but not part of D or E, when calculating retainage? Also, why are 6 rows of $0 resulting in a total of $5,100?

Colin Bost January 04, 2023 01:19

For context, here is the explanation given:

CORRECT RESPONSE

$1,172.50

A 5% retainage is withheld from overhead and soft cost items and a 10% retainage is withheld from all other items.

CALCULATIONS

1. Item 1 - General Conditions, Overhead and Profit: 0.05 x $7,600= $380

2. Item 2 - Performance Bond: 0.05 x $1,950 = $97.50

3. Item 3 - Concrete Repairs: 0.1 x $2,200 = $220

4. Item 4 - Masonry Repairs: 0.1 x $1,750 = $175

5. Item 5 - Landscape Restoration: 0.1 x $0 = $0

6. Item 6 - Engineering: 0.05 x $6,000 = $300

7. Total amount of retainage to be withheld: $380 + $97.50 + $220 + $175 + $300 = $1,172.50

Topic: Administrative Procedures & Protocols

Correct Answer(s)

1172.5

NCARB January 06, 2023 15:12

Hello Colin,

We have reviewed the item and agree, the grand totals distract from the intent of the question, which was to just calculate the line items on the form that are visible. We'll be removing the grand totals from the exhibit to eliminate any future confusion.

The Continuation Sheet - NCARB Practice Test Question

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