Exam Cheat Sheet · Quick Reference
Oklahoma Plumbing 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
75%
Exam time
120 min
Administered by
PSI Services Contractor
Format
Reference materials allowed
Oklahoma State Portion 50 questions
Bidding and Estimating
10 Q · 20%
Quantity take-off method and cost componentsLabor cost calculation and labor burdenOverhead calculation and markup for profit marginEthics in bidding: bid shopping, peddling, and riggingBid documents and bid submission requirementsEquipment cost determination: rent, lease, or buyEstimating pitfalls and accuracy considerationsJob cost recording system and cost code structureGeneral EstimatingBid
Project Management and Supervision
7 Q · 14%
Scheduling methods: calendar, bar chart, and critical path method (CPM)Scheduling process elements: task sequence, activity duration, contingency time, float time, and task time rangesProject manager and supervisory team roles: superintendent, foreman, materials expediter, and owner's representativeProject life cycle phases: pre-construction, construction, and job completion/closeoutTracking project progress: daily reports, status reports, and schedule monitoringBudget and cost controls: cost overruns, just-in-time materials delivery, and purchase order systemsScheduling and cash management: working capital, progress payments, and cash flow budgetingQuality assurance and value engineering: internal inspections, shop drawings, specifications, and customer satisfaction surveysProject Management and SupervisionGeneral Project OversightOversee BudgetOversee Quality Control
+8 more
Contracts
5 Q · 10%
Required elements of a binding contract (offer, acceptance, consideration, competent parties, legal purpose)Types of construction contracts (lump-sum, unit-price, cost-plus, turnkey, fast-track)Contract provisions (price and payment terms, obligations of parties, supplemental conditions, boilerplate)Breach of contract (material vs. immaterial breach, liquidated damages, statute of limitations)Progress payments and retainageChange orders and contract modificationsAlternative dispute resolution (negotiation, mediation, collaborative law, arbitration)Subcontracting requirements and subcontract contentTerminologyRequired Elements/ComponentsContract TypesChange Orders
+5 more
Financial
8 Q · 16%
Financial statements (balance sheet, income statement, statement of cash flows)Bookkeeping and the accounting cycleCash management and accounts receivable collectionFinancial ratios (liquidity, quick, debt, profitability, activity ratios)Contract accounting methods (completed contract, percentage of completion, cost comparison)Depreciation methods (straight line and accelerated/MACRS)Payroll accounting and net pay calculationsMethods of accounting (cash vs. accrual)Business Organization Characteristics, Advantages, and DisadvantagesBusiness Start-upAccounting MethodCash Flow Terminology
+8 more
Labor and Personnel
5 Q · 10%
Oklahoma Workers' Compensation coverage requirements and securing compensationEmployer and subcontractor liability for workers' compensationAnti-discrimination and retaliation protections for employees filing workers' compensation claimsTypes and calculation of workers' compensation disability benefitsFair Labor Standards Act minimum wage, overtime, and recordkeeping requirementsEmployee vs. independent contractor classification under IRS guidelinesProhibited interview questions and lawful hiring practicesChild labor laws and restrictions on hiring minors in constructionADALabor StandardsRequirements for Non-citizens and/or Non-residentsWorkers' Compensation
+4 more
Risk Management
4 Q · 8%
Types of insurance coverage for plumbing contractors (general liability, property, automobile, workers' compensation)Surety bond requirements for plumbing contractors under Oklahoma CIB rulesTypes of surety bonds (bid, performance, payment, maintenance, fidelity) and their purposesOklahoma workers' compensation obligations for employers and subcontractorsInsurance and bond requirements for subcontractorsCoverage gaps, overlaps, and selecting appropriate insurance policiesMiller Act and Construction Industry Payment Protection Act bonding requirements for federal projectsQualifying for a bond and the surety underwriting processInsuranceBonds
Payroll and Payroll Taxes
6 Q · 12%
Federal employment tax types: FICA, federal income tax withholding, and FUTAPayroll deduction calculations: gross pay, tax withholdings, and net payDeposit schedules: monthly, semiweekly, and daily thresholds and due datesEmployer tax forms: W-2, W-3, W-4, Form 941, and Form 940FUTA liability thresholds, quarterly deposit schedule, and Form 940 filingPenalties for late or incorrect payroll tax depositsPayroll recordkeeping requirements under FLSAForm 1099-MISC reporting for independent contractorsForms and Due DatesTaxes
Licensing Requirements
5 Q · 10%
License types and categories (unlimited vs. residential journeyman and contractor)Eligibility requirements and experience for journeyman and contractor licensureApprentice registration requirements and supervision ratiosExamination procedures, passing scores, and reexamination waiting periodsLicense duration, renewal procedures, and expiration datesContinuing education requirements for license renewalBond and insurance requirements for plumbing contractorsReciprocity, exam equivalency, and military/military spouse licensure provisionsRenewalRequired Insurance/Bonds
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 bids from other subcontractors after award.
NASCLA Contractors Guide, Page 6-2ArbitrationvsMediation
An arbitrator renders a legally binding decision on all parties, whereas a mediator only facilitates dialogue to help parties reach a mutual agreement without issuing a binding ruling.
Nascla Contractors Guide 14th, Chapter 7 — ArbitrationNamed Peril Builder's Risk InsurancevsAll-Risk Builder's Risk Insurance
Named peril policies cover only the specific perils listed, while all-risk policies cover all perils except those specifically excluded.
Chapter 3 – Named Peril Builder's Risk Insurance sectionBank 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, whereas a surety bond (e.g., performance bond) typically covers 100% of the contracted price.
Chapter 3 – Bond Language sectionCompany OverheadvsProject Overhead
Company overhead (e.g., office rent, accounting fees) cannot be directly linked to a specific project and averages 5–20% of revenue, while project overhead (e.g., bonds, dumpsters, temporary storage) is tied directly to a specific project and typically runs 5–10% of the total bid.
NASCLA Contractors Guide, Page 6-6Accrual Accounting MethodvsCash Accounting Method
The accrual method recognizes income when services occur and expenses when incurred regardless of payment timing, while the cash method records income and expenses only when money is actually received or paid.
NASCLA Contractors Guide, Chapter 14 — Accrual Method sectionCritical Path Method (CPM)vsBar Chart / Calendar Scheduling
CPM graphically shows interdependent relationships between tasks so delays can be traced through the schedule, while bar chart and calendar methods do not show task interdependencies.
NASCLA Contractors Guide, Chapter 8 — Critical Path Method sectionFree Float TimevsTotal Float Time
Free float is the time an activity can be delayed without affecting the early start of the next activity, while total float is the leeway without delaying the overall project completion date.
NASCLA Contractors Guide, Chapter 8 — Float Time sectionUnit Price EstimatingvsQuantity Take-Off Estimating
Unit price estimating bundles all cost factors (labor, materials, equipment, subcontractors) into a single price per unit of work, while the quantity take-off method itemizes each cost category separately before adding overhead and profit.
NASCLA Contractors Guide, Page 6-7Independent ContractorvsEmployee
An independent contractor uses their own tools, advertises to multiple clients, bids flat fees, and can realize profit or loss, whereas an employee is subject to behavioral and financial control by the employer under IRS guidelines.
Nascla Contractors Guide 14th, Chapter 14 — Employee vs. Independent Contractor ClassificationSuperintendentvsForeman
The superintendent oversees all daily onsite operations across the entire project, while the foreman supervises specific areas organized by trade such as rough carpentry or concrete installation.
NASCLA Contractors Guide, Chapter 8 — Foreman sectionPreliminary EstimatevsDetailed (Quantity Take-Off) Estimate
A preliminary estimate is a risky price quote given before accurate calculations are made, while a detailed estimate uses the quantity take-off method and should fall within 1–2% of actual construction costs.
NASCLA Contractors Guide, Page 6-7Key Terms
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, forbidden by some state statutes on public projects.
Addendum NASCLA Contractors Guide, Page 6-1
A document issued before a bid due date to communicate changes to the bid package; it becomes part of the bid documents and ultimately part of the contract.
Labor Burden NASCLA Contractors Guide, Page 6-4
Additional costs layered on top of raw labor cost—including Medicare/Social Security, workers' compensation, unemployment insurance, and company benefits—adding approximately 30% to labor cost.
Value Engineering NASCLA Contractors Guide, Chapter 8 — Value Engineering section
A project management approach that seeks to understand the owner's cost, quality, and time priorities in order to deliver the highest-value product, sometimes rewarded with contractor bonuses.
Just-In-Time (JIT) Delivery NASCLA Contractors Guide, Chapter 8 — Just-In-Time section
A materials management strategy that times deliveries to arrive exactly when needed, keeping inventory costs low and reducing the risk of theft or vandalism.
Critical Activity NASCLA Contractors Guide, Chapter 8 — Float Time section
A scheduled task with zero float time, meaning any delay to it will directly delay the overall project completion date.
Contingency Time NASCLA Contractors Guide, Chapter 8 — Contingency Time section
A buffer added to a task's scheduled duration to protect against unforeseen delays; more contingency is warranted for tasks subject to weather, custom work, or limited-access conditions.
Status Report NASCLA Contractors Guide, Chapter 8 — Status Reports section
A periodic project communication tool that summarizes highlights by addressing items completed, items in progress, and outstanding items for customers, managers, subcontractors, and suppliers.
Cost Overrun NASCLA Contractors Guide, Chapter 8 — Budget Tracking section
Occurs when actual project costs exceed the budgeted amounts in the estimate; should be identified and investigated promptly so corrective action can be taken.
Federal Unemployment Tax (FUTA) NASCLA Contractors Guide, Chapter 14 — Federal Unemployment Tax (FUTA) section
A payroll tax paid solely by the employer (not withheld from employees), reported on Form 940, with an offset credit available to employers who pay state unemployment tax on time; deposits under $500 may be carried forward.
Maintenance Bond Nascla Contractors Guide 14Th, Chapter 3 (Managing Risk) — Bond Language section
A bond that guarantees workmanship after project completion, typically set at 10% of construction cost, compared to performance bonds which are usually 100% of the contracted price.
Distribution Code NASCLA Contractors Guide, Page 6-8
A code used in a job cost recording system to identify the type of cost—material (M), labor (L), equipment (E), or project overhead (P)—appended to the activity classification code.
Materials Expediter NASCLA Contractors Guide, Chapter 8 — Materials Expediter section
A member of the project supervisory team primarily responsible for supervising the materials procurement process to ensure accurate and timely delivery.
Change Order Chapter 6, Add Allowances section, Page 51
A document created during construction when the owner's material selections or scope changes result in costs that exceed or fall short of the allowance amount stated in the contract.
Standard Industry Markup NASCLA Contractors Guide, Page 6-7
A markup of 15% applied to direct costs (labor, material, equipment, project overhead, subcontractors), though contractors should adjust based on market conditions and competition.
Daily Report NASCLA Contractors Guide, Chapter 8 — Daily Reports section
An onsite log that must contain only factual information—never personal opinions about crew members—so it retains credibility if used as legal documentation in a dispute.
Formulas to Know
Labor Cost per Task
Required Labor Hours per Task × Labor Rate = Labor Cost per TaskTotal Material Unit Cost
Price per Unit × Number of Units Needed = Total Material Unit CostCompany Overhead Percentage
Total Overhead Costs (prior year) ÷ Total Revenue (prior year) × 100 = Company Overhead %Total Bid (Quantity Take-Off)
Materials + Labor + Labor Burden + Subcontractor Fees + Project Equipment + Project Overhead + Contingencies + Allowances + Company Overhead + Profit = Total BidMarkup Applied to Direct Costs
Direct Costs × Markup % = Markup Amount; Direct Costs + Markup Amount = Bid PriceUnit Price Total Cost
Unit Price × Total Quantity = Total Task CostEstimate Accuracy Check
|Estimate − Actual Cost| ÷ Actual Cost × 100 ≤ 2% → Good Estimate