The Trainer

DOCUMENTING CONTRACTOR'S COST ESTIMATES

In this issue's compliance article, we discussed how, in case of an audit, you must be able to show that you're paying a reasonable price for contractor services. HUD has some specific guidelines for when you must get cost estimates. Take the quiz below to test your knowledge of HUD's requirements.

TRAINER'S QUIZ

INSTRUCTIONS: Each of the questions below has only one correct answer. On a separate sheet of paper, write down the number of each question, followed by the answer you have chosen—for example, (1) b, (2) a, and so on. The correct answers (with explanations) follow the quiz. Good luck!

QUESTION #1

HUD requires you to get written estimates from contractors when you expect the services or supplies to cost how much per year?

1. $50,000 or more

2. $20,000 or more

3. $10,000 or more

QUESTION #2

For services or supplies that require written estimates, at least how many estimates must you get?

1. 10

2. Five

3. Three

QUESTION #3

When you're allowed to get oral—instead of written—estimates, you must get at least three estimates. True or false?

1. True

2. False

QUESTION #4

How long must you keep proof of all estimates, including written estimates, bid packages, and oral estimates?

1. Three years

2. Five years

3. Seven years