CE Mock up exam question  retainage
Hello!
I was working on this question in the mock up exam and I am a bit confused on the calculation.
To my understanding, the payment for this period should be "this period" minus "retainage". Is that correct? If so, the calculation of "this period" should already contain retainage so why add again?

The question says, if 90% of the work is completed then the Retainer can be released (which is the case for the site work or line item 1). So it is the monthly charge plus the charge for the materials currently stored plus the Retainer for the site work because the site work is at 90%. The sum of those 3 things gives you the correct answer.

Adding the total completed and the balance to finish
you'll get the scheduled value, so you can easily notice that retainage subtract
and if you need to complete form G702 you'll get deduct the retainage value of item 1
that form it correct in comply with form G702 yet the question is confusing and the answer too
could someone help me to recognize and connect the numbers here?
Please sign in to leave a comment.
Comments
3 comments