Business And Law 1 Flashcards
To determine the number of hours required for different phases of a project and for making sure the job is on schedule use
Critical path method
Who pays Fica
50% employer 50% employee
Who pays FUTA
Employer
Employer must give employee a completed W-2 by
January 31
The qualifying RME for construction firm must work at least
32 hrs a week
80% of work week
When balancing accounts receivable what would have no effect
Posting to the wrong account
What represents company’s financial position on a specific date
Balance sheet
What happens after employees taxable wages exceed $7000
The employer does not pay FUTA
The first document usually delivered in the home-improvement contract is
Notice to owner
If required safety devices are missing from a tool the employee should
Notify the contractor
It is not legal to ask a potential employee about arrest records when
They did not lead to a conviction
The immigration Reform and control act requires employees to complete form _
To verify their employment eligibility
W-4
According to the business and professions code how much can the contractor except as a down payment
$1000 or 10% whichever is less
Who is responsible for checking the site before the building inspector arrives
Contractor
Who would be responsible if a contractor completes a project and later discovers there was a building code violation
Contractor and architect
It’s a subcontractor does not have Workmans comp on the subcontractors employee gets hurt who is held responsible
The prime contractor
But short-term loan would not be obtained for
Office rent
Insurance policy that covers a high degree of exposure to risk his
Umbrella policy
Lumber yards and suppliers offer a discount to contractors of what percent if they pay their bills on time
1 to 2%
It’s a newly hired employee does not have a Social Security number which should be done
They need to apply for one by completing SS – 5 application
What is the most likely reason to lose bid
Vague specifications
After you have read the plans and specs the next important step in writing a bid
Walk the job
Once the budget is finalized
The contractor should try to stay within the budget
To ensure and error-free bid
Doublecheck the bid before submitting it to the client
The federal employer ID number is issued by
IRS
How often are FICA taxes reported and pay
Quarterly
? May not be deducted from employees check
Worker’s Comp. insurance premiums
When should you let your attorney see your construction contract
After the contract is prepared but before you sign it
If a homeowner cancels a contract how does the contractor have to pick up unused materials that were delivered
Within 20 days after cancellation
Contractor supervisors are required to conduct toolbox or tailgate safety meeting how often
Once every 10 working days
Gosh must investigate the complaint charging a serious violation of health or safety standards within
Three days
When is an employer allowed to see their own personal file
Whenever they want
A hard labor may not be younger than
16 years old
When an owner signs a receipt for a stop notice that usually means the owner
Recognizes that A lien could be placed on funds
The strictest measure of liquidity
Quick ratio
Business records must be kept for how many years after completion of a construction project
Five
The construction or altercation of a building or any structure requires a contractors license if the project costs
$500 or more
When should a contractor renew the contractors license bond
30 days before it expires
If you are listed as a partner on the license and I have been actively engaged for the past five out of seven years you can
Apply for license with the waiver of the exam
On a time and materials job you should
Add profit and overhead to laborers and materials
What does a cost management system do
Helps analyze the cost of labor and materials
What summarizes revenues cost of sales, and operating expenses over a period of time
Income statement
A subcontractor who does not serve a preliminary notice
Loses stop notice and mechanics lien rights
Who can legally issue a lie detector test
Federal state or local agencies
If your supplier goes on strike you should
Contact the owner immediately
Contractor should ask if this asBestos is present in a house built before
1978
If you unearth human remains or artifacts
Stop work immediately at that site and nearby ones
Allowing your license to be used by an unlicensed contractor can result in disciplinary actions
.
Entering into a contract with another unlicensed contractor is not okay
.
If you’re planning to drill or day on the job site notify who before starting
Regional underground service alert notification Center
The best way to choose insurance is to consider
Cost and coverage
Who must sign a joint control addendum to a home-improvement contract
The owner the contractor and the joint control officer
Employee remittance state income tax and state disability taxes withheld from an employee wages to what agency
Employment development Department
Who do you report and pay sales tax
The board of equalization
If a contractor forgets to renew his license on time expired license may be renewed any time with them? After it’s expiration date without reapplying
Five years
Employer must report every work related illness or injury to their workers compensation carrier within
Five days of the incident
Employer that has? Or more full-time or part-time employees must keep written health and safety records for how many years
11 five
The CS LB has a stab list a mandatory arbitration program of verified complaints in which damages are
$7500 or less
Direct cost would be
Payroll tax
What a subcontractor does work on a public works contract the public agency considers the subcontractor
An employee of the prime contractor
Where is the notice of right to cancel found on the contract
Near the customer signature
If you purchase materials from the county that has additional sales tax added
You must pay the additional sales tax in the county it was purchased
Subcontractor is responsible for supplying his own safety goggles
.
If a contractor hires strikebreakers to replace employees on strike the penalty is
$1000 maximum fine and or 90 days in jail Max
If an employer pays an employee in cash
They must provide a wage deduction statement semi monthly or at the time of each payment
To in activate your license
Write to the CS LB
How many times can you take the contractors exam before your application is voided
As many times as necessary within 18 months
If a contractor changes the designs and the owner says it’s lost value the owner can take him to court and win
The cost of repairs and the loss of market value
It’s a general contractor gets bids from subcontractors and one
is really low
You can tell that subcontractor about a possible error but cannot disclose the other amounts of the beds
If a customer wants to cancel the contract within three days they do not have to use the original contract they can
Send a written letter by mail
If you do not name a subcontractor you plan on using
You will do that part of the work yourself
The homeowner may not give the sales person bonus
Who me a sales person accept a bonus from
Sales person they only except a bonus from the contractor or subcontractor
A reason and owner would require an unconditional lien release from a subcontractor
The owners property covered by the lease may not be leined
It’s an employee violates a safety rule and another employee is injured who is responsible
Employer
A contractor bidding a job discovers the specifications are not correct he should
Refrain from submitting a bid
Where do you get permits for working in hazardous areas
OSHA
You have completed 60% of the job the owner has not been paying you filed a mechanics lien what’s the next step
Continue working on the job
The job must be completed before you can file a mechanics lien
The most important thing to include when advertising for construction work
Contractors license number
The typical retention especially on large jobs would be
10% of the first draw
In owner objects to materials being used and complains to a worker you should
Have the work stopped until an on-site meeting can be scheduled with the owner
The easiest cost for a contractor to control
Subcontractor costs
When would employee be required to complete a new W-4
If their marital status changes
If a job will last at least six months but could be longer tell the people interviewing
It’s a temporary position
If an employee quits he must be paid within
72 hours
Who is responsible for selecting materials when refilling a first aid kit for job site
Dr.
Where would a contractor get a security bond
Insurance agent
Two types of contracts a contractor would most likely see
Construction and permits
Which state agency does the employer send unemployment insurance tax
EDD
Who is best qualified to submit the plans and specifications
Architect
What is the best way to see if the contractors license
Call CSlb
A contractor needs to keep change orders on file
By law
If there is no collective-bargaining agreement employees has to pay
2x a month
Weekly
