Exam Cheat Sheet · Quick Reference

Oklahoma Electrical Business and Law

Oklahoma  ·  PSI Services Contractor

Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
50
Passing score
70%
Exam time
120 min
Administered by
PSI Services Contractor
Format
Reference materials allowed

Oklahoma State Portion 50 questions

Bidding and Estimating 10 Q · 20%
General EstimatingBid
Project Management and Supervision 7 Q · 14%
General Project OversightOversee BudgetOversee Quality ControlOversee Materials ControlManage Jobsite SafetySchedulePotentially Hazardous MaterialsEnvironmental ProtectionSubmittals and ReportsEthicsLiens
Contracts 5 Q · 10%
TerminologyRequired Elements/ComponentsContract TypesChange OrdersStandardized DocumentsInterpretationWarrantiesDocuments/InclusionsOther Obligations
Financial 8 Q · 16%
Business Organization Characteristics, Advantages, and DisadvantagesBusiness Start-upAccounting MethodCash Flow TerminologyAccounts ReceivableAccounts PayableBalance SheetIncome StatementTaxes on Company IncomeObtaining FinancingChecking AccountFinancial Ratios
Labor and Personnel 5 Q · 10%
ADALabor StandardsRequirements for Non-citizens and/or NonresidentsWorkers' CompensationFederal or State OSHANew HiresPersonnel Record KeepingOther Requirements
Risk Management 4 Q · 8%
InsuranceBonds
Payroll and Payroll Taxes 6 Q · 12%
TaxesForms and Due Dates
Licensing Requirements 5 Q · 10%
License classifications and scope of work limitations (unlimited, residential, limited, refinery, poultry house)Experience and age requirements for contractor and journeyman license categoriesApprentice registration requirements and supervision ratiosBond and insurance requirements for active electrical contractorsLicense display, vehicle signage, and pocket license requirementsLicense fees, renewal procedures, and late renewal penaltiesReciprocity and exam equivalency procedures for out-of-state licenseesContinuing education requirements for license renewalRequired Insurance/BondsRenewal

Key Distinctions

Bid PeddlingvsBid Shopping

Bid peddling is when a subcontractor approaches the general contractor after award to lower their own price, while bid shopping is when the general contractor seeks lower prices from other subcontractors after award.

NASCLA Contractors Guide, Page 6-2
ArbitrationvsMediation

Arbitration results in a legally binding decision rendered by a third-party arbitrator, while mediation uses a facilitator to help parties reach a mutual agreement that is not imposed or binding.

Nascla Contractors Guide 14th, Chapter 7 — Arbitration
Named Peril Builder's Risk InsurancevsAll-Risk Builder's Risk Insurance

Named peril policies cover only the specific perils listed (e.g., fire and lightning), while all-risk policies cover all perils not specifically excluded.

Chapter 3 – Named Peril Builder's Risk Insurance section
Bank Letter of CreditvsSurety Bond

A bank letter of credit is a cash guarantee covering only 5–10% of the contract and is not a guarantee of performance, while a surety bond (e.g., performance bond) typically covers 100% of the contracted price.

Chapter 3 – Bond Language section
Company OverheadvsProject Overhead

Company overhead (e.g., office rent, accounting fees) is the general cost of doing business and cannot be linked to a specific project, while project overhead (e.g., bonds, temporary storage, dumpsters) is directly tied to a specific job.

NASCLA Contractors Guide, Page 6-6
Accrual MethodvsCash Method (implied)

The accrual method recognizes income when services occur and expenses when incurred regardless of when cash changes hands, while the cash method records income and expenses only when payment is actually received or made.

NASCLA Contractors Guide, Chapter 14 — Accrual Method section
Critical Path Method (CPM)vsBar Chart / Calendar Scheduling

CPM graphically illustrates interdependent relationships between tasks so delays can be traced through the schedule, while bar chart and calendar scheduling methods do not show activity interdependencies.

NASCLA Contractors Guide, Chapter 8 — Critical Path Method section
Free Float TimevsTotal Float Time

Free float is the time an activity can be delayed without impacting the early start of the very next activity, while total float is the leeway before the overall project completion date is delayed.

NASCLA Contractors Guide, Chapter 8 — Float Time section
Quantity Take-Off MethodvsUnit Price Method

The quantity take-off method estimates materials and labor separately then adds overhead and profit, while the unit price method bundles all cost factors (labor, materials, equipment, subcontractors) into a single price per unit of work.

NASCLA Contractors Guide, Page 6-3
Direct CostsvsOperating (Indirect) Expenses

Direct costs (materials, subcontractor fees, permit fees, labor) are directly linked to a specific project, while operating expenses (office salaries, advertising, warehouse rental) support the business generally and are not project-specific.

NASCLA Contractors Guide, Chapter 2 — Income Statement section
Project ManagervsSuperintendent

The project manager serves as the main contact with the owner, prepares budgets, reviews shop drawings, and monitors overall progress, while the superintendent is the onsite supervisor who coordinates daily operations, tracks schedule/cost deviations, and maintains project records.

NASCLA Contractors Guide, Chapter 8 — Who is the Project Manager? section
SuperintendentvsForeman

The superintendent oversees all daily onsite operations across the entire project, while the foreman supervises specific trade areas such as rough carpentry or concrete installation.

NASCLA Contractors Guide, Chapter 8 — Foreman section

Key Terms

Labor Cost Formula NASCLA Contractors Guide, Page 6-3
Per NASCLA Contractors Guide p. 6-3: Required Labor Hours per Task × Labor Rate = Labor Cost per Task.
Labor Burden NASCLA Contractors Guide, Page 6-4
Per NASCLA Contractors Guide p. 6-4: adds approximately 30% to labor cost and includes Medicare/Social Security, federal and state unemployment insurance, workers' compensation, liability insurance, and company benefits — raw material costs are excluded.
Company Overhead Percentage Range NASCLA Contractors Guide, Page 6-6
Per NASCLA Contractors Guide p. 6-6: company overhead percentages generally average between 5% and 20%; contractors should calculate rates specific to their own historical income statement data.
Project Overhead Percentage Range NASCLA Contractors Guide, Page 6-6
Per NASCLA Contractors Guide p. 6-6: project overhead costs typically account for 5% to 10% of the total bid and should be itemized as much as possible for accuracy.
Standard Industry Markup NASCLA Contractors Guide, Page 6-7
Per NASCLA Contractors Guide p. 6-7: the standard industry markup is 15% applied to direct costs (labor, material, project equipment, project overhead, and subcontractors), though market and competition should be considered.
Maintenance Bond Amount Nascla Contractors Guide 14Th, Chapter 3 (Managing Risk) — Bond Language section
Per NASCLA Contractors Guide Chapter 3: maintenance bonds are typically set at 10% of construction cost, compared to performance bonds which are set at 100% of the contracted price.
Good Estimate Accuracy Threshold NASCLA Contractors Guide, Page 6-2
Per NASCLA Contractors Guide p. 6-2: a good construction estimate will fall within 1% to 2% of actual construction costs.
Bid Review Timeframe NASCLA Contractors Guide, Page 6-8
Per NASCLA Contractors Guide p. 6-8: after a contractor submits a bid, the bid review process generally takes 30 to 90 days before the contractor is notified of acceptance or rejection.
Addendum NASCLA Contractors Guide, Page 6-1
A document issued before the bid due date to communicate changes to the bid package; it becomes part of the bid documents and ultimately part of the awarded contract.
Bid Rigging NASCLA Contractors Guide, Page 6-2
A form of collusion where contractors coordinate their bids to fix the award outcome of a project; some state statutes forbid this practice on public projects.
Zero Float (Critical Activity) NASCLA Contractors Guide, Chapter 8 — Float Time section
An activity with zero float has no scheduling leeway — any delay to it directly delays the overall project completion date, making it a critical activity on the CPM schedule.
Just-In-Time (JIT) Delivery NASCLA Contractors Guide, Chapter 8 — Just-In-Time section
A materials management strategy that times deliveries to arrive as materials are needed, keeping inventory costs low and reducing the risk of onsite theft or vandalism.
Value Engineering NASCLA Contractors Guide, Chapter 8 — Value Engineering section
A project management approach aimed at understanding the owner's cost, quality, and time priorities to deliver the highest-value product, often incentivized by owner bonuses for cutting costs without sacrificing quality.
FUTA (Federal Unemployment Tax) NASCLA Contractors Guide, Chapter 14 — Federal Unemployment Tax (FUTA) section
Per NASCLA Contractors Guide Chapter 14: paid solely by the employer (not withheld from employees), reported on Form 940, and employers who pay state unemployment tax on time receive an offset credit toward their FUTA liability; deposits under $500 may be carried forward.
Distribution Code NASCLA Contractors Guide, Page 6-8
Per NASCLA Contractors Guide p. 6-8: a one-letter suffix appended to the activity classification code in a job cost system to identify cost type — M (material), L (labor), E (equipment), P (project overhead); e.g., finish carpentry equipment = 06200E.
Non-Standard Abbreviations (Estimating Error) NASCLA Contractors Guide, Page 6-7
Per NASCLA Contractors Guide p. 6-7: using unclear shorthand in an estimate that could be misinterpreted as a different measurement or material; the recommended practice is to spell out the full word.

Formulas to Know

Labor Cost per TaskRequired Labor Hours per Task × Labor Rate = Labor Cost per Task
Total Material Unit CostPrice per Unit × Number of Units Needed = Total Material Unit Cost
Company Overhead PercentageTotal Overhead Costs (from income statement) ÷ Total Revenue (from income statement) × 100 = Company Overhead %
Total Bid with MarkupDirect Costs (labor + materials + equipment + project overhead + subcontractors) × (1 + Markup %) = Total Bid Price
Unit Price Total CostUnit Price × Total Quantity = Total Task Cost
Estimate Accuracy Check|Estimated Cost − Actual Cost| ÷ Actual Cost × 100 = Variance %; good estimate ≤ 2%
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