Practice Test (Business Law - Builder's License) Flashcards
The builder or contractor shall deliver to the customer, when construction is involved:
Associated Answers
1 specifications for the job
2 all necessary permits
3 both plans and specifications
4 fully executed copies of all agreements, including plans and specifications
4 fully executed copies of all agreements, including plans and specifications
Whitie Nowak built a house in January. It was sold in February and Renfru Zetz moved in at completion in September of the same year. The following year in December the pipes froze. Who is responsible for the damage?
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1 plumber
2 builder
3 heating contractor
4 homeowner
2 builder
Notes:
The builder is responsible for faulty workmanship for a period of 18 months. Starting from the date of purchase, completion or occupancy which ever occurs last.
Which is not a requirement to obtain a builder’s license?
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1 taking a builder’s course and a one year apprenticeship
2 taking and passing the residential builder’s examination
3 paying the required license fee
4 completion of 60 hrs. of required study
1 taking a builder’s course and a one year apprenticeship
A proper notification of change of address must be made within:
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1 10 days
2 30 days
3 45 days
4 60 days
2 30 days
What is the first step the Department will take to resolve a complaint between a buyer and builder?
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1 file a cease and desist order against the builder
2 file a summary suspension of the builder’s license
3 hold an informal conference
4 hold a contested case hearing
3 hold an informal conference
At what point after a completed contract will the Department not investigate a complaint?
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1 a certificate of occupancy is issued
2 a purchase agreement is signed
3 the building is occupied
4 18 months after completion, occupancy, or purchase, whichever occurs later
4 18 months after completion, occupancy, or purchase, whichever occurs later
A license can be revoked without a hearing:
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1 true
2 false
3 not if the builder shows good faith
4 if the builder is from another state
1 true
A father is the only qualified builder in a partnership he has with his son. The father dies. In order for the son to continue with the business, the son must:
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1 deliver to the Department a copy of the death certificate
2 request that the license be transferred to the son’s name
3 complete the license application procedure, including taking and passing the exam
4 claims residential inheritance
3 complete the license application procedure, including taking and passing the exam
If the license of the qualified officer, partner, trustee, director, officer, member, or person exercising control of the corporation, partnership, or other association is revoked, or denied, the license of the corporation, partnership or other association shall:
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1 be suspended
2 remain in effect for 30 days
3 be issued under an assumed name (d.b.a.)
4 lapse at the end of the month
1 be suspended
The phrase “good moral character” typically means:
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1 person has no bankruptcies
2 strong religious convictions
3 person is honest and fair
4 person has never been incarcerated
3 person is honest and fair
An applicant operating as a corporation must submit which of the following to the Department?
Associated Answers
1 copy of the articles of incorporation
2 certified copy of sales tax license number
3 names and addresses of corporation board members
4 all of the above
4 all of the above
If, as a licensed builder, you file for bankruptcy, you:
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1 are in violation of the Code and may be subject to any one of the several penalties
2 must post bond with the Bureau
3 can continue to operate for not more than 90 days
4 none of the above
1 are in violation of the Code and may be subject to any one of the several penalties
What is a change in specifications prior to bidding called?
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1 a completed application
2 change order
3 addition to the contract
4 change in specifications
4 change in specifications
A licensee found guilty of one Article 6 violation may be:
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1 suspended, revoked, censured, or placed on probation
2 suspended, revoked, censured, placed on probation, and/or fined
3 suspended or reprimanded by the Labor Bureau
4 suspended, or placed on probation
2 suspended, revoked, censured, placed on probation, and/or fined
A person who has had a limitation placed on a license may petition the Department, in writing, for a review of the decision to place the limitation. The licensee has how many days to file this petition?
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1 5 days
2 15 days
3 30 days
4 60 days
3 30 days
An unlicensed builder, Mr. Spencer, contracts to add a room on to homeowner Jones’ house. Upon completion, Mr. Jones refuses to pay builder Spencer for his services. Mr. Spencer:
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1 can tear down the room
2 can record a lien on Mr. Jones’ property
3 can sue Mr. Jones for his fee, plus court costs
4 has no recourse
4 has no recourse
According to the Occupational Code, the following is not a residential builder:
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1 one who demolishes houses
2 one who works for an hourly wage for his labor in building a house
3 one who assembles prefabricated housing
4 one who provides plans, labor and materials for the building of a house
2 one who works for an hourly wage for his labor in building a house
The board member who has participated in an investigation on a complaint filed with the Department, or who has attended an informal conference, _______ participate in making the final decision on that complaint.
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1 must
2 must not
3 may arbitrate to
4 may be appointed to
2 must not
A residential builder or maintenance and alteration contractors license is not required if:
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1 you contract to build a house as an electrician
2 you build homes part time
3 you are an officer of a court acting within the terms of the officer’s office
4 you work for a non-profit organization
3 you are an officer of a court acting within the terms of the officer’s office
A license may be revoked for (mark incorrect answer):
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1 a violation of a building code
2 disregarding blueprints and specifications
3 mishandling deposit money
4 both spouses not signing the contract
4 both spouses not signing the contract
The law regulating licensing of the building trades is known as:
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1 Occupational Code of 1980
2 Public Act 299 of 1980
3 Michigan Builders License Law
4 both A and B
4 both A and B
A salesperson cannot start selling until he receives his:
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1 license and pocket ID card
2 admittance letter for the examination
3 OK from the builder
4 until he or she sends in the application for the examination
1 license and pocket ID card
When a builder or contractor wants to advertise in the media, he must:
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1 furnish his license number before any advertising begins
2 furnish his license name and address
3 both a and b
4 neither, if he’s just in town for a while
3 both a and b
What is considered a legitimate place of business for a licensed builder?
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1 a post office box number
2 a telephone answering service
3 an actual established, physical location from which the builder can and does conduct business and where books and records are kept
4 the residential construction site
3 an actual established, physical location from which the builder can and does conduct business and where books and records are kept
If the qualifying officer, who is licensed for a business, has his license suspended:
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1 the salesperson license is held in escrow
2 the salesperson license is also suspended
3 a temporary license is granted while the board investigates the aspects of the suspension
4 the business may continue to operate with civil court guidance
2 the salesperson license is also suspended
What reason may the Department use for the denial of an application for a license?
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1 non-issuance of a surety bond
2 a notice of furnishing being issued
3 good and sufficient cause
4 not having insurance coverage
3 good and sufficient cause
Failure to act on a complaint that construction is structurally/materially deficient is:
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1 punishable by fine or imprisonment
2 cause for federal involvement
3 is always the fault of the subcontractors
4 is not a problem if the complaint is 60 days old
1 punishable by fine or imprisonment
Who is entrusted to enforce the licensing act requirements in the State of Michigan and who may prosecute?
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1 Attorney General enforces, the Department prosecutes
2 Department enforces, Attorney General prosecutes
3 the Department (BOPR)
4 the Judge Advocate General
2 Department enforces, Attorney General prosecutes
Failure of an individual licensee or qualifying officer to appear before an informal conference may be the basis for:
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1 suspension
2 revocation
3 denial of a license
4 all of the above
4 all of the above
When a salesperson terminates employment, what must the builder do?
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1 the builder must wait for a state requisition
2 the builder must wait for a written request by the salesperson
3 the builder must return the salesperson’s license within 5 days by certified mail
4 the builder must wait for the salesperson’s relinquishment of the sales card
3 the builder must return the salesperson’s license within 5 days by certified mail
A commission can be paid to you for the sale of goods and services of a builder provided:
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1 it is occasional and supplemental income
2 you are related to a licensee
3 you are employed by the provider of the stated goods and services and you hold a salesperson license
4 you hold a real estate license
3 you are employed by the provider of the stated goods and services and you hold a salesperson license
If the company’s license is revoked, the salesperson’s license:
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1 is extended for six months or until the salesperson finds a new employment
2 is suspended
3 remains in effect, if the salesperson was not involved in any wrong doing
4 automatically transferred to the state
2 is suspended
If Mr. Write holds a Maintenance and Alteration Contractor’s License in the State of Michigan, what must he do to obtain a Residential Builder’s License?
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1 submit an application with the required fee
2 take and pass the test for residential builders
3 nothing, because the licenses are essentially the same thing
4 take a builders prelicensing class
2 take and pass the test for residential builders
What must a licensee submit to the Bureau to be licensed as a corporation?
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1 qualifying officer’s license number and certificate of incorporation
2 tax ID number, names and addresses of corporate officers and the certificate of incorporation
3 address of the corporation where the license will be displayed and books and records kept
4 all of the above
2 tax ID number, names and addresses of corporate officers and the certificate of incorporation
An unlicensed builder who has the homeowner pull all building permits for the builder to construct a residential building over $599:
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1 is absolved from all liability
2 is legally circumventing the law
3 is in violation of the Department laws
4 is in violation of the Construction Lien Act
3 is in violation of the Department laws
Which of the following is exempt from being licensed?
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1 maintenance and alteration contractor
2 residential builder
3 garage builder
4 approved US Government official
4 approved US Government official
A builder has how long to renew his license after the expiration of his last license, without retaking the exam:
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1 two years
2 three years
3 thirty days
4 ninety days
2 three years
An applicant shall not be refused a license without:
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1 first obtaining an attorney
2 being deemed to have bad moral character
3 having an opportunity for a hearing before the Department
4 a valid driver’s license
3 having an opportunity for a hearing before the Department
The Residential Builders license is only issued by the:
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1 Michigan Department of Labor
2 local building inspectors
3 Department of Licensing and Regulatory Affairs
4 Governor’s Office
3 Department of Licensing and Regulatory Affairs
Following a complaint, the Attorney General’s Office may order a builder to stop all work. Such a demand is known as:
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1 a liability order
2 a cease & desist order
3 a revocation
4 a suspension
2 a cease & desist order
“Commission” means:
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1 a “board” other than an agency
2 an agency other than a board
3 the same as “agency”
4 the same as “board”
2 an agency other than a board
In the Occupational Code, “Department” means:
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1 Department of Labor
2 Department of Attorney General
3 Department of Licensing and Regulatory Affairs “LARA”
4 Department of H.U.D.
3 Department of Licensing and Regulatory Affairs “LARA”
Who decides what penalty will be imposed against a residential builder who violates the occupational code?
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1 Builder’s Board
2 the Director of the Department, if the Board fails to take action within 60 days
3 Civil Liberties Union
4 both A and B
4 both A and B
If a residential builder’s license is suspended:
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1 the sales people remain licensed for 30 days or until they find another builder
2 the builder’s salespersons’ licenses are also suspended
3 the builder’s salespersons are responsible for returning their license
4 none of the above
2 the builder’s salespersons’ licenses are also suspended
Who submits a salesperson’s license application?
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1 the builder
2 the salesperson
3 the department
4 the testing company
1 the builder
Expiration date of a residential builders license shall be:
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1 annually on their application date
2 every year on the anniversary of their license
3 May 31
4 June 1
3 May 31
The members of the board are appointed by the:
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1 commission
2 Governor, with the advice and consent of the senate
3 legislature
4 senate with the approval of the Governor
2 Governor, with the advice and consent of the senate
Which of the following is a violation of the articles regulating the occupation?
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1 practicing fraud or deceit in obtaining a license
2 practicing fraud, deceit or dishonesty in practicing an occupation
3 violating a rule of conduct of an occupation
4 all of the above
4 all of the above
Which of the following could be a penalty for violating an article regulating an occupation?
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1 placement of a limitation on a license
2 suspension of a license
3 revocation of a license
4 all of the above
4 all of the above
Upon the completion of the contract between the builder and the homeowner, what is delivered?
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1 building agreement only
2 specifications for construction only
3 a copy of all instruments executed by the principals
4 his new furniture
3 a copy of all instruments executed by the principals
An alternate form of testing must be provided for:
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1 a person with a physical handicap
2 a person with a mental handicap
3 request for an oral exam after failing the exam
4 all of the above
4 all of the above
All records kept in the office of the Department shall be:
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1 open to the public
2 closed to the public
3 closed to the public, unless opened by court order
4 open only by federal intervention
1 open to the public
A builder:
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1 need not display the license of his salesperson
2 must display the licenses of his salespersons in his place of business
3 need not have a licensed salesperson sell his goods and services
4 must display his salespersons licenses on each remodel job
2 must display the licenses of his salespersons in his place of business
A residential contractor and a commercial contractor have the same regulatory commission for new construction of:
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1 four-story apartment buildings
2 small strip malls
3 jewelry store
4 all of the above
4 all of the above
A complaint has been filed against a builder. In order for the dispute to be settled informally:
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1 a fine will be imposed
2 agreement must be reached between both parties and the Bureau
3 the builder must agree to a suspension of his license
4 the Board must take civil action in addition to the resolution of the complaint
2 agreement must be reached between both parties and the Bureau
A valid reason for a general contractor to withhold payment from a licensed subcontractor would be:
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1 a draw made by subcontractor, which is not processed by the contractor
2 an improperly placed purchase order by the contractor
3 unacceptable work by the subcontractor
4 unacceptable work by the contractor
3 unacceptable work by the subcontractor
If a builder decides to sell his business:
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1 he can sell his business only to a person who is already operating as a licensed builder
2 the business cannot be sold: its assets must be liquidated and it must be dissolved
3 the new owner must be licensed, or take the test and become licensed before he could operate the company
4 he can sell both his license and business to another person
3 the new owner must be licensed, or take the test and become licensed before he could operate the company
In the Occupational Code, the word “Board” means:
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1 Board of Licensing and Regulation
2 Residential Builders and Maintenance and Alteration Contractors Board
3 Board of Review
4 Board of Examiners
2 Residential Builders and Maintenance and Alteration Contractors Board
The “Respondent” in a complaint proceeding is:
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1 the person who files a complaint
2 the person against whom the complaint is filed
3 the person who investigates the complaint
4 the person who, in writing, makes the complaint known to the public
2 the person against whom the complaint is filed
If the builder disputes the material facts of the complaint against him, the Board may:
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1 ask for a report from the building official in the area of the complaint
2 make an inspection to determine the facts
3 ask the complainant to furnish more information
4 any of the above
4 any of the above
You can file a complaint against a builder or contractor if you are:
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1 the local building official
2 a dissatisfied customer
3 the Attorney General
4 any of the above
4 any of the above
Which of the following cannot be done without a licensed contractor?
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1 building a house for your own use
2 repairs to a house by the owner
3 dividing a house into apartments by the owner
4 building a structure that will have both commercial and residential use
4 building a structure that will have both commercial and residential use
An M & A contractor licensed for carpentry would like to install a roof. The contractor:
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1 must write the word “roofing” on the license
2 must take and pass the M & A contractor test for roofing
3 must use employees who are licensed roofers
4 can proceed. The existing license will also be good for roofing
2 must take and pass the M & A contractor test for roofing
In the Occupational Code, “place” means:
Associated Answers
1 the place at which construction takes place
2 the physical location out of which one does business
3 a post office box
4 a telephone answering service
2 the physical location out of which one does business
A contempt of court citation can be issued against a builder who is the object of a complaint:
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1 in lieu of an administrative hearing
2 prior to a formal investigation of a complaint
3 as a penalty for violation of the code
4 for willful refusal to cooperate in the investigation of a complaint
4 for willful refusal to cooperate in the investigation of a complaint
Each member of a partnership or corporation must have a Builders License.
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1 True
2 False
2 False
If a licensed builder hires a salesman to work part time on a salary, a salesman’s license is not required.
Associated Answers
1 True
2 False
2 False
Who sets the standards of conduct, performance, qualifications and fitness of applicants, conducts investigations, and settles complaints?
Associated Answers
1 the Committee
2 the Board
3 the Senate
4 the Attorney General
2 the Board
Failure to appear for an informal conference may result in:
Associated Answers
1 suspension of a license
2 denial of a license
3 revocation of a license
4 any one of the above
4 any one of the above
If a company is organized as a Corporation, Limited Liability Company or a Partnership, must both the company and the qualifying officer puchase a license?
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1 Yes
2 No
1 Yes
The Department’s request for a current and accurate financial statement must be:
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1 sent by registered mail
2 served by the courts
3 signed by the Attorney General
4 a written demand
4 a written demand
Which of the following are violations of the Occupational Code?
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1 abandonment (without legal excuse) of a contract, construction project, or operation engaged in or undertaken by the licensee
2 diversion of funds or property received for completion of a specific construction project or operation for any other construction project or operation, obligation, or purpose
3 failure to account for or remit money coming into the person’s possession which belongs to others
4 all of the above
4 all of the above
It is a violation of the Occupational Code, in a maintenance and alteration contract, for the licensee to fail to furnish, to the lender, the purchaser’s signed completion certificate executed upon completion of the work to be performed under the contract:
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1 yes
2 no
3 Under Federal Law
4 not in township jurisdiction
1 yes
When do you, as a sole proprietor, have to file and pay into the unemployment fund?
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1 when you have three or more employees
2 when you have one employee who works less than 35 hours per week
3 when gross wages paid out exceed $1,000.00
4 payment into the unemployment fund is not required by law
3 when gross wages paid out exceed $1,000.00
If a Maintenance and Alteration contractor, licensed as a carpenter, wants to add to his trade, such as roofing, must he take the roofing exam?
Associated Answers
1 yes
2 not if it’s less than 50% of his business
3 no, he can do roofing with his existing license
4 no, he must take the residential builders examination
1 yes
Members of the Maintenance and Alteration Contractor’s Board are:
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1 voted for by the general public
2 appointed by the Governor with the consent of the senate
3 appointed by the Board
4 appointed by the Governor with the consent of the house of representatives
2 appointed by the Governor with the consent of the senate
A license must be renewed on or before:
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1 January 31
2 December 31
3 May 31
4 June 3
3 May 31
Which of the following are not required to have a Residential Builder’s license because they are licensed under a separate law?
Associated Answers
1 an electrical contractor
2 H.A.V. contractor
3 a plumbing contractor
4 all of the above
4 all of the above
A person who, for compensation of $600.00 or more, undertakes with another the repair, alteration of, addition to, subtraction from, improvement of, moving of, or wrecking of a residential building must be licensed as a:
Associated Answers
1 Commercial Builder
2 Residential Builder or Maintenance and Alteration Contractor
3 Electrical Contractor
4 Handyman
2 Residential Builder or Maintenance and Alteration Contractor
An employee or agent of a licensed residential builder or maintenance and alteration contractor who, for compensation, sells, negotiates, solicits for, furnishes or attempts to furnish the goods and services of a residential builder or maintenance and alteration contractor must:
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1 be honest and a good salesperson
2 be licensed as a residential builder
3 be licensed as a salesperson
4 be licensed as a residential maintenance and alteration contractor
3 be licensed as a salesperson
The following are exempt from licensure except:
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1 a government representative
2 an owner of rental property, with reference to the maintenance and alteration of that rental property
3 a person working on one undertaking or project by one or more contracts in which the total contract price is more than $600.00
4 a person operating under an order of the court
3 a person working on one undertaking or project by one or more contracts in which the total contract price is more than $600.00
The Department and Board may remove a limitation on a license:
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1 if the licensee retests
2 if the licensee makes restitution
3 if they determine that he could perform with competence each function of the occupation
4 both A and B
3 if they determine that he could perform with competence each function of the occupation
A builder licensed as Robert Conrad Building Company may advertise as:
Associated Answers
1 Robert Conrad Building Company
2 Conrad Building Company
3 Bob The Builder
4 Robert Conrad Construction
1 Robert Conrad Building Company
When contracting with a builder to build a house from a set of plans, the builder must provide to the purchaser:
Associated Answers
1 a set of plans
2 a set of the specifications
3 a fully executed copy of all agreements between them
4 all of the above
4 all of the above
A restricted license could be one in which:
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1 the licensee may be restricted to a specific function of the occupation
2 the licensee may be restricted to a specified geographical location
3 the licensee may be required to have all of his contracts reviewed by an attorney
4 all of the above
4 all of the above
Which of the following does not require licensing?
Associated Answers
1 maintenance and alteration contractor
2 residential builder
3 garage builder
4 commercial builder
4 commercial builder
The effective date of the Occupational Law for Residential Builders and Maintenance and Alteration Contractors is:
Associated Answers
1 January 31, 1966
2 January 1, 1966
3 October 21, 1980
4 no such law
3 October 21, 1980
If you are issued a cease and desist order following a complaint, you:
Associated Answers
1 must cease building for one year
2 are entitled to a hearing before the Bureau, if a written request is made within 30 days
3 have no recourse to regain your license, except by a lawsuit
4 may build until the end of the month
2 are entitled to a hearing before the Bureau, if a written request is made within 30 days
As used in the Occupational Code:
Associated Answers
1 “complaint” means a verbal or written grievance
2 “board” means apathetic
3 “incompetence” means government action
4 “licensee” means the applicant
1 “complaint” means a verbal or written grievance
A person shall not have a license issued to him or her until the person:
Associated Answers
1 pays the required fee
2 meets the requirements 10 through 26
3 files certificates of insurance
4 all of the above
1 pays the required fee
Public Act 299 provides for licensing and the right to engage in business as:
Associated Answers
1 salesperson
2 residential builder
3 maintenance contractor
4 all of the above
4 all of the above
A person registering a complaint with the Department against a builder must do so within:
Associated Answers
1 90 days
2 12 months of the purchase
3 18 months of sale, completion, or occupancy, whichever occurs later
4 60 days of the sale
3 18 months of sale, completion, or occupancy, whichever occurs later
Act 299 has a specific licensure exemption for:
Associated Answers
1 all 9 members of the builder’s board
2 unlicensed builders who disclose their status to their clients
3 employees of licensed builders
4 employees of unlicensed builders
3 employees of licensed builders
Who can licensed contractors bring to a hearing to speak on their behalf?
Associated Answers
1 his or her subcontractors
2 a duly authorized representative or attorney
3 the Board member who participated in the investigation
4 they are not allowed to defend themselves
2 a duly authorized representative or attorney
What is the purpose of an investigative conference?
Associated Answers
1 to determine what the penalty should be
2 to terminate or suspend the license
3 to determine if there is cause for a hearing or complaint
4 to establish the amount of the fine
3 to determine if there is cause for a hearing or complaint
How many days advance notice will a person be given before an investigative conference is held?
Associated Answers
1 5 days
2 10 days
3 15 days
4 30 days
2 10 days
How many days does a person have from receipt of a complaint to respond?
Associated Answers
1 5 days
2 10 days
3 15 days
4 30 days
3 15 days
Can the Department demand a financial statement at any time?
Associated Answers
1 no
2 yes, and the builder shall respond within 30 days
3 yes, and the builder shall respond within 15 days
4 yes, and the builder shall respond within 45 days
2 yes, and the builder shall respond within 30 days
Can a builder solicit a contract by promising the purchaser a bonus which is contingent upon the purchaser displaying his dwelling to a third person?
Associated Answers
1 yes, if the agreement is in writing and fully executed
2 no, never
3 yes, as long as the bonus is a fixed amount and not a percentage
4 yes, as long as it is not in writing
2 no, never
When a salesperson terminates employment with a builder, what must the salesperson do?
Associated Answers
1 the salesperson returns the license within 5 days via regular mail
2 the salesperson returns the ID pocket card via certified mail within 30 days
3 the salesperson returns the pocket ID card via certified mail within 5 days
4 the builder returns both the pocket ID card and the license to the Department within 5 days via certified mail
3 the salesperson returns the pocket ID card via certified mail within 5 days
Where should the licenses be displayed in a builder’s office?
Associated Answers
1 on the bathroom wall
2 on the office wall in a conspicuous position
3 in a secure place where they will not be stolen
4 in the file cabinet with other important papers
2 on the office wall in a conspicuous position
Who sets the standards of conduct, performance, qualifications and fitness of applicants, conducts investigations, settles complaints, and handles disciplinary procedures?
Associated Answers
1 the board
2 the Governor
3 the applicant
4 the “Act”
1 the board
A licensee, upon written demand and notice by the Department, shall within _______ days submit a current and accurate financial statement showing his or her current financial status.
Associated Answers
1 10
2 15
3 30
4 60
3 30
What is the completion date of a structure?
Associated Answers
1 upon final inspection by state and local inspectors
2 upon final approval of state and local inspectors
3 the date the certificate of occupancy is issued
4 all of the above
3 the date the certificate of occupancy is issued
Which of the following cannot be used by the Department to determine the fitness of an applicant to hold a license:
Associated Answers
1 your scores on a license test
2 an arrest for an offense, which is not followed by conviction
3 your general financial solvency
4 your standards of professionalism and competency
2 an arrest for an offense, which is not followed by conviction
When criminal charges are brought against a builder he:
Associated Answers
1 can avoid a penalty by assigning blame to his subcontractors
2 has the same right to legal process as anyone accused of an offense
3 can no longer do business in Michigan
4 can only ask for a hearing before the Bureau of Professional and Occupational Regulation
2 has the same right to legal process as anyone accused of an offense
If the builder decides on his own to use cheaper materials than specified without a change order he is:
Associated Answers
1 acting in violation of the code, even if the materials themselves are not in violation of the code
2 breaking the contract between himself and the owner
3 limiting his legal claim to payment by the owner
4 all of the above
4 all of the above
When a builder signs a citation issued by the Bureau, it:
Associated Answers
1 means the builder cannot be further penalized by the Bureau for that offense
2 is acceptance of a cease and desist order
3 only indicates that the citation has been received by the builder
4 means that the builder has admitted to the violation and has forfeited his right to a hearing
3 only indicates that the citation has been received by the builder
If you are issued a cease and desist order following a complaint, you:
Associated Answers
1 must cease building for a period of one year
2 have no recourse to regain your license except by bringing suit against the Bureau
3 are entitled to a hearing before the Bureau, if a written request is made within 30 days
4 must post bond equal to the contract amount for the project
3 are entitled to a hearing before the Bureau, if a written request is made within 30 days
If a company loses their qualifying officer, the company’s license is suspended.
Associated Answers
1 true
2 false
1 true
Notes: If requested, the Department may allow the company’s license to remain in force for a reasonable time in order to get a new qualifying officer.
If you wish to renew a license that has expired within 60 days of the expiration date, you must pay a late renewal fee of ____ plus the license fee.
Associated Answers
1 $10
2 $20
3 $30
4 $40
2 $20
How many board members are needed to constitute a quorum?
Associated Answers
1 4
2 5
3 6
4 7
2 5
Sole proprietors, corporations, LLCs and partnerships all have to purchase a license. What other entities require the purchase of a license?
Associated Answers
1 sales persons
2 qualifying officers of Corps, LLCs and Partnerships
3 all branch offices
4 all of the above
4 all of the above
)If there is a contractual agreement to use arbitration as a means of settling disputes, will the board take action against a licensee if the step required in the arbitration agreement are met by the contractor.
Associated Answers
1 yes
2 no
2 no
Notes: Typically the court recognizes the arbitrators’ decision to be final.
What must sales people and contractors use to identify themselves to potential customers in door to door sales?
Associated Answers
1 their business card
2 their wallet license ID card
3 their license number
4 any of the above
2 their wallet license ID card
A corporation has three branch offices and six sales people. If all of these licenses expire in the same year, how many licenses must be renewed by May 31st?
Associated Answers
1 2
2 5
3 8
4 11
4 11
Notes: 1 for their qualifier, 1 for the corporation, 3 for the branch offices and 6 for the sales people.
Sworn Statements are required by law to be used by contractors as a means of relinquishing financial transparency to the owners, material providers or subcontractors. If the owner requested a copy of a builders sworn statement, how may days does the contractor have to provide it?
Associated Answers
1 1
2 3
3 7
4 10
4 10
The company’s listed on a contractors sworn statement will typically be material providers and subcontractors.
Associated Answers
1 true
2 false
1 true
How many days does a contractor or material provider have to file a lien against an owner’s property from their last day on the job or from time of purchase
Associated Answers
1 30 days
2 45 days
3 60 days
4 90 days
4 90 days
Subcontractors and material suppliers must provide to the owner of a project their “Notice of Furnishings” with ____ days of first providing any labor or materials.
Associated Answers
1 5
2 10
3 15
4 20
4 20
A person who files a lien must take action to foreclose on the lien within _______.
Associated Answers
1 30 days
2 3 months
3 6 months
4 1 year
4 1 year
Owners must make available a “Notice of Commencement” which will provide the correct information as to the owner or owners of a property and their correct addresses. If a contractor requests a copy the owner must provide it within ________.
Associated Answers
1 10 days
2 15 days
3 20 days
4 30 days
1 10 days
Contractors who understand what their responsibilities are under the lien laws of Michigan will file the necessary forms and protect their right to be paid.
Associated Answers
1 true
2 false
1 true
Both LLCs and _______ need to provide copies of their Articles of Incorporation when applying for a license.
Associated Answers
1 Sole Proprietorships
2 Joint Ventures
3 Partnerships
4 Corporations
4 Corporations
Passing test scores are only good for:
Associated Answers
1 90 days
2 1 year
3 18 months
4 2 years
2 1 year
Salespeople may only work under one contractor at a time.
Associated Answers
1 True
2 False
1 True
If a license is suspended or revoked, the licensee must return it to the Department within:
Associated Answers
1 3 days
2 5 days
3 7 days
4 10 days
4 10 days
If a qualifying officer leaves a company, they have ______ to notify the Department in writing.
Associated Answers
1 10 days
2 24 hours
3 30 days
4 60 days
1 10 days
Residential builders are required by law to have an actual office in Michigan where their business records are kept.
Associated Answers
1 True
2 False
1 True
Which of the following does not need to be included in a residential construction contract?
Associated Answers
1 specifications and plans
2 costs
3 type and amount of work to be done
4 professional architect or engineer approval
4 professional architect or engineer approval
If someone makes a complaint aggainst you, you must respond to the notice within _____ of receipt.
Associated Answers
1 7 days
2 10 days
3 15 days
4 30 days
3 15 days
If you have let your licesne lapse, you are still responsible for reporting a change of address:
Associated Answers
1 up to 7 years after the license has changed
2 3 years after all complaints have been closed
3 Until all final orders have been complied with
4 Any of the above
4 Any of the above
If you are late to renew your license, there is a fee of:
Associated Answers
1 $15
2 $20
3 $25
4 $50
2 $20
An arrest record that was not followed by a conviction is still considered as a count against you when applying for a license.
Associated Answers
1 True
2 False
2 False
The ___________ is a Michigan specific civil rights legislation.
Associated Answers
1 Walsh-Healy Act
2 Elliott-Larson Civil Rights Act
3 Civil Rights Act of 1866
4 Fair Housing Act
2 Elliott-Larson Civil Rights Act
Which of the following is NOT exempt under the Ellliott-Larson and Persons with Disabilities Acts?
Associated Answers
1 rental of a unit in a two-family dwelling that is occupied by the owner
2 rental of a room in a single-family dwelling occupied by the owner
3 sale of a by the owner of a unit in a two-family dwelling
4 rental of a unit in a multi-family dwelling
4 rental of a unit in a multi-family dwelling
These laws shape and influence what job restrictions and qualifications may be established, how advertisement are placed and what tests may be used in the applicant screening process.
Associated Answers
1 Equal Employment Opportunity
2 Fair Housing
3 Dodd-Frank
4 TRID
1 Equal Employment Opportunity
Which of the following is NOT an acceptable question or topic to discuss with a potential candidate?
Associated Answers
1 Reason for leaving their previous job
2 Description of a typical day at current job
3 Birthplace of the applicant or their parents
4 How long they have been job hunting
3 Birthplace of the applicant or their parents
Which of the following pre-employment questions pose legal implications by tending to single out specific protected classes?
Associated Answers
1 Previous arrest records
2 Financial status
3 Birth dates
4 All the above
4 All the above
____ is a naturally occurring fibrous mineral.
Associated Answers
1 lead
2 asbestos
3 silica
4 radon
2 asbestos
ACM (Asbestos Containing Material) is any material containing more than _____ % asbestos.
Associated Answers
1 1%
2 5%
3 7%
4 10%
1 1%
Records of asbestos exposure must be kept for:
Associated Answers
1 5 years
2 10 years
3 20 years
4 30 years
4 30 years
The agency responsible for promulgating and enforcing the Renovation, Repair and Painting Program is:
Associated Answers
1 DNR
2 EEOC
3 HUD
4 EPA
4 EPA
When considering lead-based paint exposure, are hospitals considered “target” housing?
Associated Answers
1 Yes
2 No
2 No
Houses built before _______ typically have lead paint risk factors.
Associated Answers
1 1990
2 1978
3 2000
4 2003
2 1978
Since 2010, all contractors who work with homes built prior to 1978 with lead paint hazards must be certified renovators.
Associated Answers
1 True
2 False
1 True
EPA has established limits for minor repairs of maintenance, that do not require compliance with the RRP Rule. Work that does not exceed _____ sq ft per interior room of 20 sq ft is exempt.
Associated Answers
1 4 sq ft
2 6 sq ft
3 8 sq ft
4 10 sq ft
2 6 sq ft
RRP certifications are good for:
Associated Answers
1 2 years
2 3 years
3 5 years
4 6 years
3 5 years
You may become certified by taking a 4 hour course provided by the local building department.
Associated Answers
1 True
2 False
2 False
Documentation of renovations, testing and training related to renovations must be kept for:
Associated Answers
1 2 years
2 3 years
3 5 years
4 7 years
2 3 years
This radioactive gas comes from the natural breakdown of uranium soil, rock and water.
Associated Answers
1 asbestos
2 radon
3 lead
4 Sulphur
2 radon
A ______ layer of clean gravel below the slab allows radon gas to move more freely under the building.
Associated Answers
1 2 inch
2 3 inch
3 4 inch
4 6 inch
3 4 inch
______ should be placed on top of the gravel base to prevent the radon gas from entering the house.
Associated Answers
1 rigid foam
2 loose fill
3 cardboard
4 heavy plastic sheeting
4 heavy plastic sheeting
It is recommended you run a 3 or 4 inch PVC pipe from the gravel to the roof where radon can be safely vented out of the house.
Associated Answers
1 True
2 False
1 True
Which business organization is regulated the least by the government?
Associated Answers
1 Limited Liability Company
2 Corporation
3 Partnership
4 Sole Proprietorship
4 Sole Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the percentage of the company they own.
Associated Answers
1 true
2 false
2 false
What business organization provides the most financial protection for the owners?
Associated Answers
1 Sole Proprietorship
2 General partnership
3 Corporation
4 Limited Partnership
3 Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital.
Associated Answers
1 true
2 false
2 false
Can a corporation actually be listed as the sole owner of a property?
Associated Answers
1 yes
2 no
1 yes
Limited Liability Companies have the ability to be passed down to family members when an owner (member) dies.
Associated Answers
1 true
2 false
2 false
Sub Chapter “S” Corporations can retain their status no matter how many stockholders they have.
Associated Answers
1 true
2 false
2 false
If you are naming the Sole Proprietorship something other than your real name, you will need to file a Certificate of Assumed Name with the county clerk’s office.
Associated Answers
1 True
2 False
1 True
A builder’s personal income will be reflected on tax returns except:
Associated Answers
1 Sole Proprietorship
2 Partnerships
3 Limited Liability Company’s
4 C-Corporations
4 C-Corporations
A sole proprietorship is not considered to be a legal entity under the law, but rather is an extension of the individual who owns it.
Associated Answers
1 true
2 false
1 true
Partnerships must file a certificate of co-partnership with the county clerk’s office in the counties in which you will be doing business.
Associated Answers
1 true
2 false
1 true
A 50/50 partnership dissolves and one of the partners does not fulfill his responsibility to pay off creditors. To what extent must the other partner contribute to this debt in order to keep his good name and standing?
Associated Answers
1 50 %
2 75%
3 100%
4 these things can be negotiated
3 100%
Corporations are entities that are separate and distinct from their owners. This means that the debt of the company does not transfer to the owners.
Associated Answers
1 true
2 false
1 true
Notes: Creditor will often require corporations, limited liability company’s and partnerships to sign a personal guarantee for repayment of loans, especially in the early stages of the company’s development.
C- Corporations are taxed on their earnings at the corporate level and the owners are then taxed on any cash distribution they receive, this is referred to as?
Associated Answers
1 a rip off
2 double taxation
3 dividend taxation
4 none of the above
2 double taxation
Corporations who qualify can elect to be treated as an _____________ to avoid double taxation.
Associated Answers
1 individual
2 separate entity
3 S-Corporation
4 LLC
3 S-Corporation
S-Corporations, Partnerships and LLCs must all file income tax returns and pay tax on profits.
Associated Answers
1 true
2 false
2 false
Notes: Only C-Corporations pay tax on profits.
Owners or members of S-Corporations, Partnerships and Limited Liability Company’s who collect distributions from profit made by these company’s pay individual income tax on these distributions.
Associated Answers
1 true
2 false
1 true
An advantage that a Limited Liability Company has over a partnership is?
Associated Answers
1 employees can be issued a 1099
2 limited liability of the members
3 employers are not liable for unemployment tax
4 lower insurance cost
2 limited liability of the members
Temporary storage facilities, dumpsters and utilities are considered _________ overhead.
Associated Answers
1 company
2 project
3 indirect
4 None of the above
2 project
Indirect labor costs like taxes and insurance are sometimes referred to as ______________________________.
Associated Answers
1 Labor Burden
2 Cost of doing business
3 Payroll expenses
4 All of the above
1 Labor Burden
A contractor should not only consider the costs of equipment needed to build the project, whether owned or rented, but also the operating/maintenance expenses, repair of, storage, delivery, finance cost, insurance, and taxes.
Associated Answers
1 true
2 false
1 true
When adding profit to an estimate, the value is usually ___________________________.
Associated Answers
1 a flat fee
2 a percentage of the total job cost
3 30%
4 25%
2 a percentage of the total job cost
What are the first steps in completing an estimate?
Associated Answers
1 Review project documents
2 Conduct environmental assessments
3 Inspect the job site
4 All of the above
4 All of the above
Unit price estimates consist of assigning costs to each separate unit (task) of construction.
Associated Answers
1 true
2 false
1 true
)A complete list of all of the materials and items of work that would be required to complete a project are ______________________________________________.
Associated Answers
1 material and time data sheets
2 quantity surveys (take off)
3 labor and material break downs
4 shopping lists
2 quantity surveys (take off)
It is always wise to choose the subcontractor who provides the lowest bid.
Associated Answers
1 true
2 false
2 false
What would be the best source to use when estimating job site overhead?
Associated Answers
1 Overhead site survey
2 Local lumber company
3 Historical job site overhead costs records
4 None of the above
3 Historical job site overhead costs records
Recognizing that delays are inevitable, the schedule should plan for this by considering ____________________.
Associated Answers
1 Contingency time
2 Float time
3 Extra time
4 None of the above
1 Contingency time
___________ can be added into an estimate to cover unexpected expenses.
Associated Answers
1 Contingency costs
2 Float costs
3 Extra costs
4 Overhead costs
1 Contingency costs
Besides the actual cost of the materials themselves, what other cost must a builder recognize as being a material cost?
Associated Answers
1 Delivery cost
2 Material inspection
3 Storage
4 All of the above
4 All of the above
____________________are reasonable estimates of funds set aside for a particular item in a project (such as lighting fixtures). The contractor is not held to that price.
Associated Answers
1 Budget overrides
2 Allowances
3 Budget tolerance expectancies
4 All of the above
2 Allowances
The basic hourly wage incurred while an employee is being productive in the building process is known as ______________________________________.
Associated Answers
1 direct labor cost
2 scale
3 reasonable wage
4 overtime
1 direct labor cost
An advantage to renting equipment can be __________ .
Associated Answers
1 short term need
2 distant job location
3 no maintenance costs
4 all of the above
4 all of the above
This is a form of construction estimating in which a fixed price is given for the entire project.
Associated Answers
1 square foot method
2 lump sum method
3 unit price estimate
4 line item estimate
2 lump sum method
Typical industry markup is _____%.
Associated Answers
1 10
2 15
3 18
4 20
2 15
)The cost of having employees includes their hourly wage and other expenses not included in their wage such as, matching the employees social security and medicare contributions, unemployment and workers compensation expenses. These additional costs are called _________________.
Associated Answers
1 payroll taxes
2 negitive cash flow
3 labor burden
4 any of the above
3 labor burden
Items not specified in the project plans such as plumbing fixtures, electrical fixtures, and flooring can be handled by negotiating a budget for these items not yet decided upon. These additional monies set aside for the owner are called ___________ .
Associated Answers
1 contingencies
2 allowances
3 contract take off items
4 none of the above
2 allowances
The most accurate way of estimating labor cost is to refer to you company’s ___________________ from similar jobs in the past.
Associated Answers
1 historical data
2 files
3 foreman
4 any of the above
1 historical data
Contractors who utilize a job cost recording system benefit by having these records to use for future bids.
Associated Answers
1 true
2 false
1 true
Which of the following are overhead expenses?
Associated Answers
1 auto expenses
2 postage
3 office rental
4 all of the above
4 all of the above
Which of the following are indirect job cost expenses?
Associated Answers
1 equipment depreciation
2 a superintendant at the jobsite
3 bonds and permits
4 all of the above
1 equipment depreciation
Which of the following are direct job cost expenses?
Associated Answers
1 subcontractors fees
2 material costs
3 rental equipment fees
4 all of the above
4 all of the above
A contractor developed his bid charging his customer $7.50 a square foot to purchase and install flooring materials. This type of estimate is referred to as?
Associated Answers
1 unit price estimate
2 lump sum
3 conceptual estimate
1 unit price estimate
A good way of managing a job cost recording system is to require employees to provide for actual time doing specific task using designated codes on their time cards.
Associated Answers
1 True
2 False
1 True
_________ assign a cost to each measurable item of work and these are listed separately on the estimate.
Associated Answers
1 Lump Sum estimates
2 Unit price estimates
3 Fixed price estimates
4 Detailed survey estimates
2 Unit price estimates
In this type of estimate, a contractor agrees to perform a prescribed project for a single amount, even in the event that the actual cost may be more than the stipulated amount.
Associated Answers
1 Cost-plus fee
2 Unit price
3 Lump sum
4 Any of the above
3 Lump sum
Any changes to the bid before it is due can be submitted by an _________.
Associated Answers
1 appeal
2 addendum
3 change order
4 submittal
2 addendum
Factors that will influence and contribute to the cost of a project include all but the following:
Associated Answers
1 equipment
2 financial stability
3 overhead
4 degree of difficulty
2 financial stability
Temporary storage facilities, dumpsters and utilities are considered _________ overhead.
Associated Answers
1 Company
2 Project
3 Indirect
4 None of the above
2 Project
When adding profit to an estimate, the value is usually:
Associated Answers
1 A flat fee
2 A percentage of the total job cost
3 30%
4 25%
2 A percentage of the total job cost
What are the first steps in completing an estimate?
Associated Answers
1 Review project documents
2 Conduct environmental assessments
3 Inspect the job site
4 All of the above
4 All of the above
What would be the best source to use when estimating job site overhead?
Associated Answers
1 Overhead site survey
2 Local lumber company
3 Historical job site overhead costs records
4 None of the above
3 Historical job site overhead costs records
A _____________ assigns tasks and materials to specific job categories, such as supervision, clean-up, labor/materials and project general conditions.
Associated Answers
1 Value Engineering System
2 Contingency Plan
3 Change Proposal Log
4 Job Cost System
4 Job Cost System
Profit is the amount of money left over after a project is 100 percent complete and referred to as net, or clear profit.
Associated Answers
1 True
2 False
1 True
In order for a contract to become a binding document, it must contain four key elements which are an offer and acceptance, competent parties, legal purpose and:
Associated Answers
1 Consideration
2 Evaluation
3 Notary
4 Witnesses
1 Consideration
The term consideration means that both parties to a contract must be exchanging something of value.
Associated Answers
1 true
2 false
1 true
What is the term used to identify changes made to contract documents before the execution of the basic owner contractor agreement?
Associated Answers
1 change orders
2 modifications
3 Addenda
4 All of the above
3 Addenda
Oral contracts are valid, but are often difficult to enforce.
Associated Answers
1 true
2 false
2 false
Notes: Michigan requires that all residential construction projects be in writing!
Terms used in a contract that allow the owner to withhold an agreed upon percentage of the contract funds until the project is 100% complete is called:
Associated Answers
1 Withholding allowance
2 Retainage
3 Retainer
4 Escrow
2 Retainage
Losses paid by the contractor if the project isn’t completed in a specified time frame written into the contract are called:
Associated Answers
1 Reimbursement
2 Reparation
3 Deadline compensation
4 Liquidated damages
4 Liquidated damages
Changes made to the contract documents after the signing of the basic owner-contractor agreement are called:
Associated Answers
1 Addenda
2 Modifications
3 Notary
4 Bulletins
2 Modifications
Change orders are an example of contract modifications.
Associated Answers
1 true
2 false
1 true
When one contractor assumes all design and construction responsibilities this contract is known as:
Associated Answers
1 Turn key
2 Design/Build
3 Fast Track
4 Single prime
2 Design/Build
The most important thing for both the contractor and the owner to do before signing a contract is to read and understand the contract.
Associated Answers
1 true
2 false
1 true
These are common contract terms that predetermine how important issues involved in a lawsuit will be addressed, such as attorney’s fees being recouped by the prevailing party in the lawsuit, or agreeing to arbitration as a method of resolving disputes.
Associated Answers
1 recitals
2 boilerplate provisions
3 rescissions
4 addenda
2 boilerplate provisions
What type of contract provides the owner with the total price for the project in advance?
Associated Answers
1 Unit price
2 Lump sum
3 Best shot
4 Hard price
2 Lump sum
)The contractor and the owner agree to set aside a sum of money for electrical fixtures and plumbing fixtures in the contract budget because the actual cost of these items are unknown. The set aside money is called:
Associated Answers
1 Escrow
2 Allowance
3 Allocation
4 All of the above
2 Allowance
If the contract specifications require 5/8” OSB to sheath the roof and the contractor used 1/2” OSB to save money, the contractor could be sued for breach of contract.
Associated Answers
1 true
2 false
1 true
If changes to the original contract occur, it is important to write a “Change Order” and have all parties on the contract sign it before the actual changes are made.
Associated Answers
1 true
2 false
1 true
The first and most important element in a contract is offer and acceptance.
Associated Answers
1 true
2 false
1 true
If a contractor finds a handwritten provision on a drawing, he should ignore it and proceed as it was originally directed by the original printed instruction.
Associated Answers
1 true
2 false
2 false
Retainage is usually paid with the final payment.
Associated Answers
1 true
2 false
1 true
The contract should provide for a schedule as to when progress payments will be disbursed and the amount of money that will be available to the contractor at each payment.
Associated Answers
1 true
2 false
1 true
A ____________ is when the terms of the contract have been violated to the extent that the contract can no longer be valid.
Associated Answers
1 liquidation
2 material misrepresentation
3 material breach
4 immaterial breach
3 material breach
You have a new roof and with the first heavy down pour of rain it’s leaking. There is no written warranty from the contractor, what type of warranty will require the contractor to correct the problem?
Associated Answers
1 limited warranty
2 special warranty
3 specific warranty
4 implied warranty
4 implied warranty
Notes: Just by the nature of the job itself there is an implied warranty. People reroof their roof so they won’t leak!
A subcontract is a contract between the subcontractor and which of the following?
Associated Answers
1 the laborers
2 the material providers
3 the owner
4 the prime contractor
4 the prime contractor
Notes: Large projects will typically have one contractor who is contracting with the owner, which means it’s a prime contract. All other service providers then contract through the general contractor who is prime.
Contractors use _______________ to modify the terms of an existing contract when changes are made. This insures that all the new work and the additional expenses will be covered in the contract.
Associated Answers
1 addenda
2 field orders
3 change orders
4 any of the above
3 change orders
A home owner hires one contractor to be in charge of designing and building of the entire project. What is the name of this method of contracting?
Associated Answers
1 turnkey
2 design/build
3 fast-track
4 construction management
2 design/build
If a contractor purchased the land, obtained the financing, designed and built the home for a client, what method of contracting would this represent?
Associated Answers
1 turnkey
2 design/build
3 fast-track
4 construction management
1 turnkey
Contracts entered into that were initiated through a solicitation require the contractor to inform the customer of their right to cancel the contract within 3 days of the signing. The contract itself must have this information in at least _______ point font and in bold print.
Associated Answers
1 6
2 8
3 10
4 12
3 10
Contracts signed at the contractor’s place of business do not qualify the customer to cancel the contract within 3 days.
Associated Answers
1 true
2 false
1 true
Contractors who start a project initiated through a solicitation before the customer’s 3 day right to cancel, risk losing their wages, including the materials expended.
Associated Answers
1 true
2 false
1 true
Which of the following is NOT a basic element of a contract?
Associated Answers
1 legal purpose
2 offer and acceptance
3 arbitration clause
4 consideration
3 arbitration clause
The details of the contract regarding who, how, what, how much, how many, when, etc., are called its____________.
Associated Answers
1 provisions or terms
2 clauses
3 addenda
4 stipulations
1 provisions or terms
This method of contracting allows for the project to begin before the project’s entire specifications have been decided upon.
Associated Answers
1 Construction Management
2 Design Build
3 Fast Track
4 Turnkey
3 Fast Track
This method of contracting involves one contract that the owner enters into to build (but not design) the structure with a single contractor.
Associated Answers
1 Single Prime
2 Turnkey
3 Design-Build
4 Construction Management
1 Single Prime
In this method of contracting, the owner contracts with a construction manager to schedule and manage construction tasks. The construction manager typically would receive a fee to manage the project from conception to completion.
Associated Answers
1 Turnkey
2 Design-Build
3 Construction Management
4 Fast Track
3 Construction Management
_______ are miscellaneous changes in the contract that predetermine how important issues involved in a lawsuit will be addressed.
Associated Answers
1 Modifications
2 Boilerplate Provisions
3 Stipulations
4 none of the above
2 Boilerplate Provisions
The term consideration means that both parties to a contract must be exchanging something of value.
Associated Answers
1 True
2 False
1 True
Terms used in a contract that allow the owner to withhold an agreed upon percentage of the contract funds until the project is 100% complete is called:
Associated Answers
1 Withholding allowance
2 Retainage
3 Retainer
4 Escrow
2 Retainage
A ____________ is when the terms of the contract have been violated to the extent that the contract can no longer be valid.
Associated Answers
1 Liquidation
2 Material Misrepresentation
3 Material Breach
4 Immaterial Breach
3 Material Breach
Which of the following usually has a direct contract with the owner?
Associated Answers
1 Laborers
2 Material Providers
3 Owner
4 General Contractor
4 General Contractor
Contractors use _______________ to modify the terms of an existing contract when changes are made. This insures that all the new work and the additional expenses will be covered in the contract.
Associated Answers
1 Addenda
2 Field Orders
3 Change Orders
4 Any of the above
3 Change Orders
This method of contracting is preferred by owners who want to deal with one firm for the entire project. The firm they hire will complete the project from the early design stages to the final completion of the project.
Associated Answers
1 single prime contracting
2 design build contracting
3 construction management system
4 fast track construction
2 design build contracting
A _________contract is very similar to the Design-Build, but the contractor also obtains the financing and the land.
Associated Answers
1 Fast Track
2 Single Prime
3 Unit Price
4 Turnkey
4 Turnkey
Which of the following dispute resolution alternatives uses a neutral person to review and render a decision that is binding?
Associated Answers
1 Negotiation
2 Collaboration
3 Mediation
4 Arbitration
4 Arbitration
The primary job of a project manager is to complete the project according to its specifications:
Associated Answers
1 Within budget
2 On Schedule
3 With the expected degree of quality
4 All of the above
4 All of the above
The critical path schedule shows how the tasks on the schedule are inter-related.
Associated Answers
1 true
2 false
1 true
By preparing a ________________ project managers will better understand the cash needed at the intervals that the monies will be disbursed.
Associated Answers
1 Preliminary cash flow schedule
2 budget
3 tracking schedule
4 none of the above
1 Preliminary cash flow schedule
Quality of construction should be addressed in the specifications. Companies that are bidding can take these expectations into consideration when they are doing their estimates.
Associated Answers
1 true
2 false
1 true
Adding __________time is a method of alotting more time in the project schedule to account for unforeseen delays.
Associated Answers
1 uncertainty
2 chance happening
3 contingency
4 extra
3 contingency
A critical path schedule will be developed by the use of a calendar.
Associated Answers
1 true
2 false
2 false
Project managers rely on information provided by ____________to effectively schedule their projects:
Associated Answers
1 subcontractors
2 records of similar past projects
3 expediters
4 both a & b
4 both a & b
For a small construction company, who would typically be the project manager?
Associated Answers
1 prime contractor (general contractor)
2 superintendent
3 architects
4 none of the above
1 prime contractor (general contractor)
In order to schedule time slots for all of the individual tasks involved in completing a project, first we need to identify each ______________.
Associated Answers
1 subcontractor
2 phase of the project
3 task
4 all of the above
3 task
A major benefit of the critical path method of scheduling is it shows how one project task will be dependent on the completion of other tasks that come before it in a ________________.
Associated Answers
1 logical sequence
2 building project
3 orderly fashion
4 descending order
1 logical sequence
This chart graphs the starting and finishing times for individual tasks that make up the project.
Associated Answers
1 bar chart
2 gantt chart
3 duration chart
4 either A or B
4 either A or B
Contingency time is providing extra time in the schedule for unforeseen delays.
Associated Answers
1 true
2 false
1 true
When using subcontractors, be sure to clearly describe the level of quality expected in their job specifications, this will help them _____ the job accordingly.
Associated Answers
1 bid
2 understand
3 plan
4 track
1 bid
A permit to build a home could still be granted if the building department doesn’t receive the prints, plans and specifications.
Associated Answers
1 true
2 false
2 false
Notes: The building official is given the power to grant a permit when drawings are not necessary. But that would never include a project like building a house!
The overall direction of the project is the responsibility of the _____________.
Associated Answers
1 project coordinator
2 home owner
3 financial advisor
4 project manager
4 project manager
When two contracting firms unite their forces to construct a project it is called a:
Associated Answers
1 partnership
2 merger
3 conglomerate
4 joint venture
4 joint venture
Notes: Some states even require that joint ventures purchase an additional license.
In a residential building project by a contractor, to whom is the building permit issued?
Associated Answers
1 home owner
2 general contractor
3 superintendent
4 any of the above
2 general contractor
The _________ method is an analysis that provides a diagram that depicts the longest continuous sequence of activities in a project, determining the overall amount of time to complete a project.
Associated Answers
1 Bar Chart
2 Gantt Chart
3 Critical Path
4 Calendar Scheduling
3 Critical Path
_____________ is a form of managing tasks that is best for simple, less complicated projects. It enables the contractor to link specific tasks to a date, manage deliveries, payments and employment schedules in a very simple, straightforward way.
Associated Answers
1 Gantt Charting
2 Critical Path method
3 Calendar scheduling
4 Queue Scheduling
3 Calendar scheduling
The _________ is responsible for all work phases and coordination of work.
Associated Answers
1 contractor
2 superintendent
3 expediter
4 project manager
4 project manager
Which is NOT true about project scheduling?
Associated Answers
1 A bad project schedule can result in contractors not knowing when to do their work.
2 Improper scheduling may increase total job time.
3 Project schedules are only required on major projects.
4 If a project schedule is too general or too detailed, it can be unusable.
3 Project schedules are only required on major projects.
Quality of construction, materials and work methods should be addressed in the specifications. Companies that are bidding can take these expectations into consideration when they are doing their estimates.
Associated Answers
1 True
2 False
1 True
Adding __________time is a method of allotting more time in the project schedule to account for unforeseen delays.
Associated Answers
1 Uncertainty
2 Chance Happening
3 Extra
4 Contingency
4 Contingency
Project managers rely on information provided by ____________to effectively schedule their projects:
Associated Answers
1 Subcontractors
2 Records of similar past projects
3 Expediters
4 Both A and B
4 Both A and B
When the project is nearing completion, a ________________is created during a walk through to determine any details that still need to be addressed in order to fully complete the project.
Associated Answers
1 Punch List
2 Job Sheet
3 Detail Survey
4 Final Report
1 Punch List
)What are the steps involved in closing out each project?
Associated Answers
1 Onsite walk-through to develop a punch list
2 Contractor/architect provide certificate
3 Owner makes final payment
4 All of the above
4 All of the above
)This chart graphs the starting and finishing times for individual tasks that make up the project.
Associated Answers
1 Bar Chart
2 Gantt Chart
3 Duration Chart
4 Either A or B
4 Either A or B
In a construction project, _________ time is the amount of time that a task in a project network or path can be delayed without causing a delay to other, subsequent tasks or to the overall completion date.
Associated Answers
1 Contingency
2 Float
3 Duration
4 Flex
2 Float
______________ is a procedure that analyzes the requirements of a project and determines how best to decrease costs, increase profits, improve quality and performance, and enhance customer satisfaction.
Associated Answers
1 Construction Analysis
2 Quality Assurance
3 Cost Coding
4 Value Engineering
4 Value Engineering
Cash receipts, customer invoices and time cards are all examples of:
Associated Answers
1 Important records
2 Source Documents
3 Bookkeeping
4 Accounting
2 Source Documents
Where is information from a business journal posted?
Associated Answers
1 General ledger
2 Log book
3 Financial statement
4 Balance sheet
1 General ledger
)Which of the below choices is an example of a financial statement?
Associated Answers
1 Balance Sheet
2 Income Statement
3 Statement of Cash Flows
4 All of the above
4 All of the above
If your company’s receipts exceed its disbursements your company has a negative cash flow.
Associated Answers
1 true
2 false
2 false
An example of a fixed asset would be:
Associated Answers
1 cash
2 machinery
3 accounts receivable
4 prepaid expenses
2 machinery
What would be an example of a fixed liability?
Associated Answers
1 electric bill
2 lumber package invoice
3 troublesome relative
4 mortgage on a company’s building
4 mortgage on a company’s building
A company’s current assets are $100,000, and the total liabilities are $50,000. What is the net working capital of this company?
Associated Answers
1 $100,000
2 $50,000
3 $10,000
4 none of the above
2 $50,000
This is the time required to purchase or manufacture a company’s inventory, sell the product, and collect the revenue.
Associated Answers
1 purchasing cycle
2 operating cycle
3 scheduling cycle
4 none of the above
2 operating cycle
An income statement is sometimes called a:
Associated Answers
1 balance sheet
2 profit and loss statement
3 statement of cash flow
4 general ledger
2 profit and loss statement
What financial statement will provide a company’s net worth?
Associated Answers
1 balance sheet
2 general ledger
3 assets and liabilities statement
4 net worth statement
1 balance sheet
Which of the following methods of accounting is used to record income at the time it is earned?
Associated Answers
1 depreciation method
2 amortization method
3 cash method
4 accrual method
4 accrual method
An example of a current asset is ___________ .
Associated Answers
1 cash
2 inventory
3 real estate
4 both a and b
4 both a and b
__________ writes off the depreciable value of an asset at a uniform rate throughout its usable life.
Associated Answers
1 Accelerated depreciation
2 Uniform rate depreciation
3 Fixed depreciation
4 Straight-line depreciation
4 Straight-line depreciation
Profitability ratios show the relationship between income or revenues versus investments and assets.
Associated Answers
1 true
2 false
1 true
The process of allocating the cost of a tangible fixed asset over the asset’s useful life is called _____________ .
Associated Answers
1 appreciation
2 depreciation
3 accrual
4 none of the above
2 depreciation
If a company has $37,525 in current assets and $12,672 in current liabilities, what is this company’s liquidity ratio?
Associated Answers
1 2.96
2 3.32
3 3.63
4 3.87
1 2.96
Notes: Current Assets divided by Current Liabilities = Liquidity Ratio
If a company has debt totaling $128,000 and total assets of 463,250 what is this company’s debt ratio?
Associated Answers
1 .252
2 .265
3 .276
4 .31
3 .276
Notes: Total Debt divided by Total Assets = Debt Ratio
If a company has current assets totaling $257,525 and an inventory value of $25,617 and current liabilities of $65,717, what is this company’s quick ratio?
Associated Answers
1 3.17
2 3.25
3 3.35
4 3.52
4 3.52
Notes: (Current Assets - Inventory) divided by Current Liabilities = Quick Ratio
Last year our company produced revenues totaling $865,125 and we secured a net income of $265,463. What is our profitability ratio for last year?
Associated Answers
1 .306
2 .318
3 .32
4 .378
1 .306
Notes: Net Income divided by Revenues = Profitability Ratio
The needed cash flow for a project should be provided for in the written terms of a contract to insure the needed monies are available to pay for expenses as the job progresses.
Associated Answers
1 true
2 false
1 true
A financial statement that provides a summary of the company’s revenues and expenses over a given period of time is:
Associated Answers
1 balance sheet
2 income statement or profit and loss statement
3 statement of cash flows
4 any of the above
2 income statement or profit and loss statement
A creditor’s claims on a company’s assets is called a___________.
Associated Answers
1 disbursement
2 cash flow
3 liabilitity
4 any of the above
3 liabilitity
Workers Compensation is paid for by the employer, no monies are deducted from the employees pay check to help pay for this expense.
Associated Answers
1 true
2 false
1 true
An invoice is received from a supplier dated June 1st in the amount of $4275.24, the payment terms are 5/10 EOM. How much does the contractor owe if the payment is made on June 8th?
Associated Answers
1 $4275.24
2 $3847.72
3 $4061.48
4 $4270.24
3 $4061.48
Notes: 5 percent discount if paid within 10 days of the invoice date or the total amount is due at the end of the month.
The __________ method of accounting records income when services occur (at the time of invoicing the customer), and expenses are recorded at the time they are incurred ( when invoices are received).
Associated Answers
1 cash
2 accural
3 cash flow
4 posting
2 accural
Of the two accounting methods below, which one is considered the better management tool?
Associated Answers
1 cash
2 accural
2 accural
Notes: This method provides a manager with a much clearer picture of a company’s financial situation.
During a given accounting cycle a company collected $55,125 in accounts receivable and paid out $50,275 in expenses. This company has a negative cash flow.
Associated Answers
1 true
2 false
2 false
Your balance sheet is used to describe the financial status of your business:
Associated Answers
1 as of a specific date
2 for the fiscal year
3 for the calander year
4 for a particular
1 as of a specific date
The main purpose of budgeting is to:
Associated Answers
1 plan ahead for a project, or series of projects
2 find the lowest cost for labor and materials
3 prevent the checking account from becoming overdrawn
4 prepare an accurate financial statement
1 plan ahead for a project, or series of projects
Which of these is not an asset?
Associated Answers
1 tools
2 inventory
3 accrued wages
4 prepaid expenses
3 accrued wages
Where is information from a business journal posted?
Associated Answers
1 General ledger
2 Log book
3 Financial statement
4 Balance sheet
1 General ledger
Which of the below choices is an example of a financial statement?
Associated Answers
1 Balance Sheet
2 Income Statement
3 Statement of Cash Flows
4 all of the above
4 all of the above
An example of a fixed asset would be:
Associated Answers
1 cash
2 machinery
3 accounts receivable
4 prepaid expenses
2 machinery
The formula for calculating working capital is:
Associated Answers
1 Assets minus liabilities
2 Assets divided by liabilities
3 Current assets minus current liabilities
4 Net income divided by revenues
3 Current assets minus current liabilities
A company’s current assets are $100,000, and the total liabilities are $50,000. What is the net working capital of this company?
Associated Answers
1 $100,000
2 $50,000
3 $10,000
4 none of the above
2 $50,000
Laborers’ salaries are typically direct cost.
Associated Answers
1 True
2 False
1 True
Which of the following methods of accounting is used to record income at the time it is earned?
Associated Answers
1 depreciation method
2 amortization method
3 cash method
4 accrual method
4 accrual method
What financial statement will provide a company’s net worth?
Associated Answers
1 balance sheet
2 general ledger
3 assets and liabilities statement
4 net worth statement
1 balance sheet
Prompt Payment Law requires owners to pay contractors within ________ days of receiving the contractor’s written request if the conditions of the contract have been met by the contractor.
Associated Answers
1 10
2 20
3 30
4 60
3 30
A system of recording and summarizing business and financial transactions is called _______________.
Associated Answers
1 Record-keeping
2 Tracking
3 Accounting
4 Economics
3 Accounting
)A company’s cash, accounts receivable, inventory, notes receivable and prepaid expenses are examples of ______________________.
Associated Answers
1 Asset
2 Current Assets
3 Capital
4 Liability
2 Current Assets
For general purposes, financial records should be kept for up to ________ years.
Associated Answers
1 2
2 3
3 5
4 7
4 7
Notes payable, accounts payable, unpaid wages and taxes due are all examples of ___________________________.
Associated Answers
1 Accounting
2 Current Liabilities
3 Fixed Liabilities
4 Labor Burden
2 Current Liabilities
Accounting is based on five basic account types:
Associated Answers
1 Assets, Liabilities, Income, Disbursements and Payroll
2 Assets, Liabilities, Equity, Income and Expenses
3 Income, Expenses, Revenues, Costs and Liabilities
4 Liquidity, Equity, Liabilities, Income and Capital
2 Assets, Liabilities, Equity, Income and Expenses
)Many times a contract cannot be completed in one taxable year. the Tax Reform Act or 1986 allows you to use a different accounting method in order to estimate income. Which of the following are acceptable?
Associated Answers
1 Completed Contract Method
2 Percentage of Completion Method
3 Cost Comparison Method
4 All of the above
4 All of the above
1/10 Net 30 means:
Associated Answers
1 1% discount if paid by the 10th day of the month after the purchases are shipped
2 1% discount if paid within 10 days; otherwise the entire amount is due within 30 days
3 Payment is due 10 days after receiving the invoice
4 Cash on Delivery
2 1% discount if paid within 10 days; otherwise the entire amount is due within 30 days
What Federal Form do employers have new employees complete in order for the employer to determine the correct amount of federal income tax to withhold from the employee’s paycheck?
Associated Answers
1 W-2
2 W-4
3 1040
4 1065
2 W-4
What is used by the federal government to identify the tax accounts of employers?
Associated Answers
1 EIN number
2 FILA number
3 FUTA number
4 None of the above
1 EIN number
What federal act provides for the lawful deduction of an employee’s wages to pay for old age, survivors, disability and hospital insurance?
Associated Answers
1 Social Security Act
2 Federal Insurance Contributions Act (FICA)
3 Medicare Act
4 Retirement Act
2 Federal Insurance Contributions Act (FICA)
Both employers and employees pay federal unemployment taxes.
Associated Answers
1 true
2 false
2 false
What Federal tax form would a corporation file for annual return of income?
Associated Answers
1 1065
2 1040
3 1120
4 W-2
3 1120
Federal law generally requires that sole proprietors, partners, and S-Corporations make estimated tax payments if they expect to owe at least _______ in taxes for the current year.
Associated Answers
1 $1,000
2 $1,500
3 $2,000
4 $5,000
1 $1,000
You must pay self-employment taxes if your net earnings were ________ or more.
Associated Answers
1 $400
2 $500
3 $1,000
4 $1,500
1 $400
)As an employer, you are responsible for filing which of the following employment taxes?
Associated Answers
1 federal unemployment tax
2 federal income tax
3 social security tax
4 all of the above
4 all of the above
You must pay self employment tax by filing form 1040SE if your annual net earnings from self employment were ______ or more.
Associated Answers
1 $250
2 $400
3 $1000
4 $2500
2 $400
Employers who report less than $2500 per quarter from monies collected from federal payroll taxes can use form _______ Quarterly Employers Tax Return.
Associated Answers
1 941
2 940
3 1040
4 SS-4
1 941
What federal form is use to report “Employers Annual Federal Unemployment Tax Return”.
Associated Answers
1 940
2 941
3 965
4 1180
1 940
Employers find the proper tax deductions for each employee based on the _______ form they filled out at the time they were hired.
Associated Answers
1 1099
2 W-2
3 W-4
4 I-9
3 W-4
What IRS publication provides employers with tables providing the necessary information for appropriate federal tax deductions?
Associated Answers
1 Circular E
2 Form 1065
3 W-2
4 W-4
1 Circular E
The only payroll taxes that both the employer and the employee contribute to equally are, Social Security and Medicare.
Associated Answers
1 true
2 false
1 true
Workers Compensation is paid for by the employer, no monies are deducted from the employees pay check to help pay for this expense.
Associated Answers
1 true
2 false
1 true
Of the choices below, which choice is paid for wholly by the employer?
Associated Answers
1 medicare
2 federal income tax
3 social security tax
4 unemployment
4 unemployment
Federal law generally requires that sole proprietors, partners, and S-Corporations make estimated tax payments if they expect to owe at least ________ in taxes for the current year.
Associated Answers
1 $1000 or more
2 $1500 or more
3 $2000 or more
4 $2500 or more
1 $1000 or more
What type of insurance will protect the contractor for losses due to a fire on his construction project?
Associated Answers
1 All Risk Builders insurance
2 General liability insurance
3 Professional liability insurance
4 None of the above
1 All Risk Builders insurance
General liability insurance will protect the contractor against claims brought by third parties who are not employed by the contractor.
Associated Answers
1 true
2 false
1 true
Who pays for workers’ compensation insurance?
Associated Answers
1 the employee
2 the employer
3 both the employee and employer
4 the federal government
2 the employer
)A guarantee that a contractor will pay certain subcontractors, laborers, and material suppliers associated with the project would be known as a____________.
Associated Answers
1 bid bond
2 performance bond
3 payment bond
4 maintenance bond
3 payment bond
Any monies paid out by a surety company will need to be paid back.
Associated Answers
1 true
2 false
1 true
Equipment in transit, on the premises or at the job site, would typically be covered by:
Associated Answers
1 General liability policy
2 All risk building insurance
3 Equipment floater policy
4 None of the above
3 Equipment floater policy
A Performance Bond guarantees that the contractor will complete the project according to the contract plans and terms.
Associated Answers
1 true
2 false
1 true
The __________ requires that federal projects valued over $100,000 must produce a performance bond to guarantee completion of the project under the terms of the contract.
Associated Answers
1 Walsh Healy Act
2 Service Contract Act
3 Miller Act
4 None of the above
3 Miller Act
Liability Insurance on employees provides coverage over and above worker’s compensation insurance in case of injury or death of an employee.
Associated Answers
1 true
2 false
1 true
Prime contractors should verify that their subcontractors have secured their own insurance for general liability and workers compensation.
Associated Answers
1 true
2 false
1 true
Can a prime contractor be held liable for a subcontractor whose employee is claiming workers compensation benefits if the subcontractor was uninsured?
Associated Answers
1 yes
2 no
1 yes
Are the owners of a sole proprietorship required to purchase workers compensation insurance to cover themselves?
Associated Answers
1 yes
2 no
2 no
Who is responsible to assume legal liabilities for construction accidents?
Associated Answers
1 the owner
2 the general contractor
3 the subcontractor
4 anyone who enters the construction area
2 the general contractor
If an inspector is injured on the builder’s job site during his inspection, which of the following insurance policies would be applicable for coverage?
Associated Answers
1 Builders Risk
2 General Liability
3 Workers’ Compensation
4 none of the above
3 Workers’ Compensation
What type of insurance covers a builder against theft of materials from a job site?
Associated Answers
1 liability
2 builder’s risk
3 workers’ compensation
4 homeowners
2 builder’s risk
An employee intentionally injured himself on the job. What percent of workers’ compensation insurance can he collect?
Associated Answers
1 0%
2 10%
3 50%
4 100%
1 0%
If a builder or one of his employees drops a hammer from the roof and injures a member of the public, what type of insurance covers the cost of the injury?
Associated Answers
1 injured persons health insurance
2 comprehensive commercial general liability insurance
3 workers’ compensation insurance
4 homeowners construction lien recovery fund
2 comprehensive commercial general liability insurance
Builder’s risk insurance can be canceled by the:
Associated Answers
1 builder only
2 home owner
3 policy holder at any time
4 property owner
3 policy holder at any time
A bond that insures that the activities on a construction project are the same as the intended activities for which the permit was granted is called a ______________ .
Associated Answers
1 Contract Surety Bond
2 Permit Bond
3 Surety Bond
4 Performance Bond
2 Permit Bond
__________ is when the homeowner is accepting the risk related to the project, instead of the general contractor.
Associated Answers
1 Home owner insurance
2 Wrap-up Liability insurance
3 Key Man insurance
4 Personal Liability Insurance
2 Wrap-up Liability insurance
Employers in Michigan are required to purchase workers compensation insurance for their employees when:
Associated Answers
1 one employee work 35 hours or more in the past 13 weeks
2 when they have 3 or more part-time employees
3 someone gets injured
4 both A and B are correct
4 both A and B are correct
What benefits does workers compensation insurance provide to injured employees?
Associated Answers
1 2/3 wage replacement
2 medical treatment
3 rehabilitation benefits
4 all of the above
4 all of the above
A contractor who does not have workers compensation insurance is at risk of being sued for the same benefits provided by workers compensation in the event of an employee injury.
Associated Answers
1 true
2 false
1 true
)An employee returns to the work force after being rehabilitated but is no longer able to perform his previous skill. If he accepts a job at a lesser pay scale will workers compensation assist him financially?
Associated Answers
1 No
2 yes, up to 66.6 % of his previous earnings
3 yes, up to 75% of his previous earnings
4 yes, up to 80% of his previous earnings
4 yes, up to 80% of his previous earnings
What is an insurance policy taken out to cover the financial loss that would arise from the death or extended incapacity of the member of the business specified on the policy.
Associated Answers
1 liability insurance
2 workers compensation insurance
3 key man insurance
4 any of the above
3 key man insurance
What type of bond guarantees that the general contractor will pay the subcontractors, laborers and material suppliers associated with the project. It guarantees that the project will have no claims or liens placed against it.
Associated Answers
1 bid bond
2 performance bond
3 payment bond
4 any of the above
3 payment bond
Which type of bond guarantees that the project will be completed according to the contract specifications?
Associated Answers
1 contract bond
2 performance bond
3 bid bond
4 subcontractor bond
2 performance bond
General contractors may require their subcontractors to carry a subcontractor bond to insure that the subs are certain to pay their material bills on a given project.
Associated Answers
1 true
2 false
1 true
Bonds provide protection in the event that contractual obligations are not met.
Associated Answers
1 true
2 false
1 true
A self employed contractor with no employees is required under Michigan law to purchase workers compensation insurance.
Associated Answers
1 true
2 false
2 false
Each _____________ , or laborer who supplies material or labor to improve a property, has a right to claim that debt owed to him by filing a lien against the property improved.
Associated Answers
1 contractor
2 subcontractor
3 supplier
4 all of the above
4 all of the above
An owner shall provide a complete ______________ to a contractor, subcontractor, supplier or laborer who has requested it.
Associated Answers
1 Notice of Furnishing
2 Letter of Authority
3 Notice of Commencement
4 Formal Contract
3 Notice of Commencement
Subcontractors and suppliers must provide a Notice of Furnishing either personally or by certified mail within ______ after first furnishing materials.
Associated Answers
1 7 days
2 10 days
3 20 days
4 30 days
3 20 days
A contractor must provide a Sworn Statement when ___________.
Associated Answers
1 payment is due
2 when the contractor requests payment
3 when an owner demands ot see it
4 all of the above
4 all of the above
Contractors are required to list materials or cost of materials that are provided in their own inventories on the Sworn Statement.
Associated Answers
1 True
2 False
2 False
A claim of lien by a subcontractor, supplier or laborer shall have attached to it a ______________of a Notice of Furnishing.
Associated Answers
1 Notice of Commencement
2 Letter of Authority
3 Proof of Service
4 Formal Contract
3 Proof of Service
If an unlicensed contractor files a lien, the unlicensed contractor is liable for ______________ .
Associated Answers
1 All costs incurred by initiating the action, including actual costs and attorney fees.
2 All costs incurred by initiating the action, except actual costs and attorney fees.
3 All damages that result from the action.
4 Only the court and attorney fees
1 All costs incurred by initiating the action, including actual costs and attorney fees.
A contract may require in its conditions that a right to a lien is waived or relinquished before any improvement is made.
Associated Answers
1 True
2 False
2 False
A ________________ is used when a contractor is going to be collecting more funds as the job progresses, but is releasing his lien right to the extent of money owed to this point. (The actual payment has been made.)
Associated Answers
1 Full Unconditional Waiver
2 Full Conditional Waiver
3 Partial Unconditional Waiver
4 Partial Conditional Waiver
3 Partial Unconditional Waiver
A conditional waiver states that the contractor or supplier will not file a lien if they are paid the amount provided on the waiver.
Associated Answers
1 True
2 False
1 True
Waivers that are “______” means that no further claim is expected upon this property.
Associated Answers
1 complete
2 full
3 empty
4 open
2 full
Court procedings to enforce a construction lien must be held within __________ of the date the lien was recorded.;
Associated Answers
1 90 days
2 6 months
3 1 year
4 18 months
3 1 year
If an owner has paid for work done, and the contractor has diverted that money elsewhere, the claim of lien does not attach to the residential structure to the extent of what the owner has already paid out.
Associated Answers
1 True
2 False
1 True
In order for foreclosure, the judge can give the defendant a time limit to pay as ordered, not to exceed _________.
Associated Answers
1 30 days
2 90 days
3 4 months
4 6 months
3 4 months
To bring a construction lien against a condo, the contract must have been with a developer or owner.
Associated Answers
1 True
2 False
1 True
Are MIOSHA inspectors permitted to conduct an inspection without advanced warning to the employer?
Associated Answers
1 Yes
2 No
1 Yes
If an injury only requires first aid, would that incident need to be recorded?
Associated Answers
1 No
2 Yes
1 No
The purpose of a/an _________ is to provide detailed information on each hazardous chemical at the job site, informing employees of potential dangers.
Associated Answers
1 SDS (Safety Data Sheets)
2 OR-OSHA 300A
3 Injury Prevention Committee
4 Environmental Control Plan
1 SDS (Safety Data Sheets)
Which is NOT an employer’s right regarding an MIOSHA inspections?
Associated Answers
1 To attend or refuse to attend the opening and closing conferences.
2 To correct violations during the inspections.
3 To be notified before the inspection to prepare for the inspection.
4 To protect trade secrets.
3 To be notified before the inspection to prepare for the inspection.
What information about hazardous chemicals is NOT found on an SDS?
Associated Answers
1 Chemical characteristics.
2 The potential for fire and explosion.
3 Medical conditions that are often aggravated by exposure.
4 Effective and ineffective protective measures.
4 Effective and ineffective protective measures.
A MIOSHA compliance officer would be most likely to check which of the following:
Associated Answers
1 whether the building permit is accurate and up to date
2 whether tennis shoes are being worn by the workers
3 if the builder is in compliance with the minimum wage law
4 all of the above
2 whether tennis shoes are being worn by the workers
Does an employer have the right to correct violations during an MIOSHA inspection, hoping to lessen the penalty?
Associated Answers
1 Yes
2 No
1 Yes
Companies with fewer than 10 employees are not required to prepare a written hazard communication program, even though hazardous chemicals are being used.
Associated Answers
1 False
2 True
1 False
The duties of the DEQ include which of the following?
Associated Answers
1 issuing permits
2 conducting inspections
3 enforcing environmental laws
4 all of the above
4 all of the above
Employers must post OSHA posters in a conspicuous place.
Associated Answers
1 True
2 False
1 True
MIOSHA on-site consultation services include which of the following?
Associated Answers
1 walk-through surveys
2 training
3 abatement advice
4 a and b
5 all of the above
5 all of the above
________ are responsible for ensuring the use of personal protective equipment such as hard hats, hearing protection and eye and face protection.
Associated Answers
1 Employees
2 OSHA officials
3 Employers
4 Competent Persons
3 Employers
Employers are required to post OSHA Form _______ (Summary of Work-Related Injuries and Illnesses) in a conspicuous spot.
Associated Answers
1 300
2 301
3 300A
4 301A
3 300A
MIOSHA records must be kept by the employer for at least ____ years following the year to which they pertain. Exposure and medical records must be kept for_____ years.
Associated Answers
1 3 and 7
2 5 and 15
3 5 and 30
4 3 and 30
3 5 and 30
These are violations committed with an intentional disregard of, or plain indifference to the requirement of the MIOSHA regulations. The initial penalty is a minimum of $5,000 and a maximum of $70,000.
Associated Answers
1 Repeat
2 Serious
3 Ongoing
4 Willful
4 Willful
Employers are required to report any new hires or rehires within ______ days of the date of employment.
Associated Answers
1 5
2 7
3 15
4 30
3 15
The purpose of the ___________is to aid in the economic, social and educational development of young people through employment.
Associated Answers
1 Davis-Bacon Act
2 Child Labor Law
3 Family Medical Leave Act
4 New Hire Reporting Law
2 Child Labor Law
The minimum working age for a young person is _____ .
Associated Answers
1 12
2 14
3 16
4 17
2 14
The ____________ establishes minimum wage and overtime compensation standards.
Associated Answers
1 Davis-Bacon Act
2 Service Contract Act
3 Wage Garnishment Law
4 Fair Labor Standards Act
4 Fair Labor Standards Act
The purpose of the ______ is to document that each new employee (both citizen and non-citizen) hired after November 6, 1986 is authorized to work in the United States.
Associated Answers
1 I-9 form
2 W-2 form
3 W-4 form
4 1040 EZ form
1 I-9 form
Employers must retain completed Forms I-9 for _______ years after the date of hire.
Associated Answers
1 1
2 2
3 3
4 4
3 3
The Americans with Disabilities Act applies to employers with ____ or more employees.
Associated Answers
1 7
2 11
3 12
4 15
4 15
Under the Americans with Disabilities Act, employers cannot require an applicant to take a medical exam prior to making a job offer, but can ask an applicant to demonstrate how the applicant will perform a job related function.
Associated Answers
1 True
2 False
1 True
The ____________ prohibits firing an employee whose pay is garnished for payment of a single debt.
Associated Answers
1 Contract Work Hours and Safety Standards Act
2 Wage Garnishment Law
3 Walsh-Healey Public Contracts Act
4 Service Contract Act
2 Wage Garnishment Law
This act entitles eligible employees of covered employers to take up to 12 weeks of unpaid job-protected leave each year.
Associated Answers
1 Family and Medical Leave Act
2 Contract Work Hours and Safety Standards Act
3 Service Contract Act
4 Walsh-Healey Public Contracts Act
1 Family and Medical Leave Act
The Family and Medical Leave Act guarantees health insurance will continue if leave is taken for which of the following reasons:
Associated Answers
1 Care of a child, spouse or parent with a serious health condition
2 For the birth and care of children
3 Placement of a child for adoption or foster care
4 all of the above
4 all of the above
Is it prohibited for a 16 year old to do roofing, excavation, or demolition work?
Associated Answers
1 Yes
2 No
1 Yes
)The ____________ requires payment of prevailing wage rates and fringe benefits on federally financed or federally assisted CONSTRUCTION.
Associated Answers
1 Fair Labor Standards Act
2 Walsh Healy Contracts Act
3 Davis-Bacon Act
4 Service Contract Act
3 Davis-Bacon Act
COBRA gives “qualified beneficiaries” the right to maintain, at their own expense, coverage under their health plan that would be lost due to a “qualifying event” at a cost comparable to what it would be if they were still members of the employer’s group.
Associated Answers
1 True
2 False
1 True
HIPAA provides for improved portability and continuity of health insurance coverage but does NOT protect an employee’s right to privacy concerning their health information.
Associated Answers
1 True
2 False
2 False
To be legally valid, a contract has to provide these items: mutual understanding, an offer to provide or perform work, acceptance signed and dated, and consideration. What is meant by consideration?
Associated Answers
1 Each party must be very careful to understand the specifics of the agreement.
2 The exchange of something of value as a show of good faith, such as money.
3 Each party must be considerate to each other.
4 None of the above.
2 The exchange of something of value as a show of good faith, such as money.
Most contracts would forbid the owner or contractor from assigning their obligations without the consent of the other party.
Associated Answers
1 true
2 false
1 true
)If a company has Current Assets of $115,000, Fixed Assets of $257,250, Current Liabilities of $27,350 and Fixed Liabilities of $187,258, what is its Liquidity Ratio?
Associated Answers
1 3.6 to 1
2 3.9 to 1
3 4.2 to 1
4 4.8 to 1
3 4.2 to 1
A project has an estimated labor cost of $162,500 and an estimated material cost of $225,100, project overhead is estimated at 5% of both labor and material cost and assigned company overhead of 1.5% of material cost. If the contract is written for $425,000, what profit margin is the contractor expecting to make?
Associated Answers
1 3.44%
2 4.95%
3 6.25%
4 7.3%
1 3.44%
Using the accrual accounting method, a contractor completes $12,500 worth of services in June. He collects $8,500 in accounts receivable in June. How much income will the contractor recognize in June?
Associated Answers
1 $8,500
2 $21,000
3 $12,500
4 $4,000
3 $12,500
