Utah Contractor Practice Exam

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Study for the Utah Contractor Exam with comprehensive quizzes and resources designed to help you master the content. Engage with flashcards and multiple-choice questions that equip you with the knowledge needed to pass the exam!

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If a contract provides retention of 5% of a $135,000 total job price, how much may the owner withhold?

$4,250
$6,750
$7,520
$8,550

The correct answer is: $6,750

To determine how much the owner may withhold based on a 5% retention of a total job price of $135,000, it's essential to apply the percentage to the total amount. First, calculate the retention amount by multiplying the total job price by the retention percentage: \[ Retention = Total Job Price \times Retention Percentage \] \[ Retention = 135,000 \times 0.05 \] Calculating this gives: \[ Retention = 6,750 \] This shows that the owner may withhold $6,750 from the contractor as retention, which ensures that a portion of the payment is held back until the job is completed satisfactorily. The practice of retention protects the owner against any potential issues with the work performed, such as defects or unfinished work. Therefore, the total amount that the owner can withhold is accurately calculated to be $6,750.