The 31 NASCLA procurement questions: where the points are

What the bulletin says, and what it does not

PSI's Candidate Information Bulletin (updated 7 Jul 2026) gives the area name and its 31 questions, and nothing below that. There is no topic list. The breakdown below is our reading of the area name and the listed references, not a NASCLA list, and no single topic is promised to appear.

Check the share: 31 / 115 = 0.2696, about 27%. And Site Construction, Concrete and Masonry are 15 + 6 + 4 = 25, six fewer than 31.

The parts of the area

Bidding and the bid package

Invitations to bid, instructions to bidders, bid forms, addenda, bid security, and the difference between a responsive bid (it follows the instructions and form) and a responsible bidder (able to do the work). See reading a bid package like an examiner.

Estimating, markup and margin

Quantity takeoff, unit prices, labor productivity and burden, overhead and profit. This is where arithmetic questions cluster, and where the most common trap sits.

Worked example (invented). Direct cost is $250,000.

• A 20% markup on cost: price = 250,000 x 1.20 = $300,000. Profit is $50,000, which is a margin of 50,000 / 300,000 = 16.67% of price. Check: 0.20 / 1.20 = 0.1667.
• A 20% margin on price: price = 250,000 / 0.80 = $312,500. Check: 312,500 x 0.80 = 250,000, and the profit of 62,500 is 20% of 312,500.

Confusing the two costs $12,500 here (312,500 - 300,000). More in five estimating mistakes that cost points and money.

Bonds and insurance

The three parties to a surety bond (principal, obligee, surety), what bid, performance and payment bonds each protect, and why a bond is not insurance for the contractor. Insurance types such as general liability, builder's risk and workers' compensation sit next to it.

Contracts and project delivery

Lump sum, unit price, and cost plus a fee with or without a capped maximum price (GMP); design-bid-build, design-build and construction management delivery; general and supplementary conditions; and who carries which risk.

Changes, payment, retainage and liens

Change orders and change directives, pay applications, retainage and lien basics.

Worked example (invented). A pay application shows $120,000 of work completed this period, and the contract holds 10% retainage. Retained: 120,000 x 0.10 = $12,000. Paid this period: 120,000 - 12,000 = $108,000. Check: 120,000 x 0.90 = 108,000.

Liens differ by state. Notice rules, deadlines and who may file are set by each state, and the exam is used in many states. Learn the concepts (what a lien is, why notices and waivers exist, how a payment bond relates to public work) and do not carry one state's deadlines into an exam answer.

Business organization and financial statements

Sole proprietorships, partnerships, corporations and LLCs; the balance sheet and income statement; and ratios such as the current ratio.

Worked example (invented). Current assets $540,000, current liabilities $360,000. Current ratio = 540,000 / 360,000 = 1.5. Check: 360,000 x 1.5 = 540,000.

Break-even and depreciation

Straight-line depreciation (invented). A truck costs $68,000 with an $8,000 salvage value over 5 years. Annual depreciation = (68,000 - 8,000) / 5 = $12,000. Check: 12,000 x 5 = 60,000, plus 8,000 salvage = 68,000.

Payroll, tax and employment law

Federal rules that are stable and public: overtime at one and a half times the regular rate for hours over 40 in a workweek under the FLSA, I-9 and W-4 basics, employer and employee shares of FICA, and quarterly Form 941. Skip year-dependent amounts such as wage bases.

Worked example (invented). A carpenter paid $30 an hour works 46 hours in a workweek. Straight time: 40 x 30 = $1,200. Overtime: 6 x 45 = $270. Gross: $1,470. Check: 46 x 30 = 1,380, plus the half-time premium 6 x 15 = 90, gives 1,470.

Which listed books to open

These are our pairings from the book titles, not NASCLA's mapping:

• NASCLA Contractors Guide to Business, Law and Project Management: business organization, contracts, bonds, insurance, payroll, tax and financial statements.
• Construction Project Management: delivery methods, estimating, bidding and contract administration.
• Construction Jobsite Management: changes, documentation and the field side of the contract.

Tab these three first and stack them on top. The reference books guide has the editions.

How to study it

1. Do the arithmetic until it is automatic. Markup and margin, retainage, ratios, depreciation and overtime need no book once you know the method, so they are the fastest points on the exam.
2. Learn the vocabulary cold. Many questions turn on one term: obligee, retainage, liquidated damages, change directive. A glossary lookup costs minutes.
3. Read for the reasoning in contract questions. Ask who bears the risk and what the documents say, not what you would do on your own job.
4. Keep state rules out of your answers. When a question needs a specific deadline or amount, it gives you the facts or points to a listed reference.

Measure it

Take the free 10-question check and look at your score in this area against its 27% share. Every answer is explained, and there is no signup. For a full lesson on this area, practice questions with every answer worked and timed 115-question exams, see the plans.

The free break-even calculator works the break-even arithmetic. For the job side of this area, read from award to the first pay application, the construction cash flow example, construction delay types explained, your first federal construction job and the construction closeout checklist.

Sources

• PSI Candidate Information Bulletin 1458, content outline and reference list, updated 7 Jul 2026. Retrieved 5 Nov 2026.
• All worked examples use invented numbers. Book content is described by topic only. Use your own copies for the text.

FAQ

How many NASCLA questions are procurement and contracting?

31 of the 115 scored questions, the largest of the twelve subject areas.

Does the NASCLA exam test lien law?

The bulletin lists no topics under the area. Lien rules vary by state, so learn the concepts rather than one state's deadlines.

Do I need a financial calculator?

No. The bulletin allows a silent, nonprinting, non-programmable calculator, and every example here works on a basic one.