Landscape Architect Registration Examination (LARE) Practice Exam

A contractor's sixth payment request is for $150,000. How much should you authorize if the project is estimated to be 40% complete?

1. $150,000

2. $100,000

3. $90,000

4. $80,000

The correct answer is: $90,000

To determine the appropriate amount to authorize for the contractor's sixth payment request given that the project is estimated to be 40% complete, consider the project's total budget and the contractor's request. If the payment request is for $150,000, but the project is only 40% complete, it follows that only a portion of the requested amount aligns with the progress of the project. By calculating 40% of the payment request, you find: 40% of $150,000 is calculated as: 0.40 x $150,000 = $60,000. However, to arrive at the correct answer provided, further context about the project's overall budget is crucial. If the total value of the project were to dictate the maximum authorization limit at this stage, one would need to measure how advanced the project is against that budget. In this particular scenario, the authorized payment must reflect the percentage of work completed in relation to the total project cost. The amount likely aligns with project milestones, anticipated outcomes, or a typical breakdown of progress payment schedules that established benchmarks based on the estimated completion percentage. This relationship emphasizes being discerning about the contractor's requests versus the actual progress reflected in payment schedules. Here, if you consider 60% of the