Test 3 Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

Of the following four items to consider when bidding, which is the most important?

A. overhead

B. labor

C. materials

D. profit

A

D. profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

An employee was injured because the contractor had overlooked a hazardous situation. Which of the following is a correct statement regarding responsibility for the injury?

A. The employee is not guilty of contributory negligence because safety laws were violated by the employer.

B. The employee and the employer are equally guilty of negligence because the employee accepted the job knowing it was unsafe.

C. The employee’s labor contract would not cover damages.

D. Everyone is at fault: The emplovee should have been more careful.

A

A. The employee is not guilty of contributory negligence because safety laws were violated by the employer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Which of the following statements about an inactive contractor’s license is correct?

A. The term of an inactive license is two years.

B. An inactive license requires a contractor’s license bond.

C. A qualifying individual does not have to be listed on an inactive license.

D. An inactive license may only be renewed twice.

A

C. A qualifying individual does not have to be listed on an inactive license.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

If there is no collective bargaining agreement, which of the following is a correct statement regarding the payment of wages by an employer?

A. The employer may pay wages whenever the employer chooses.

B. The employer may pay wages at the end of the job.

C. The employer may pay wages at the end of the job if the employees agree.

D. The employer may pay wages twice a month.

A

D. The employer may pay wages twice a month.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

A Cal/OSHA permit is required for trenches that are __________ or more in depth.

A. 4 feet

B. 5 feet

C. 6 feet

D. 8 feet

A

B. 5 feet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A customer wants to accept a bid but does not have enough money. A wise contract decision would be to:

A. eliminate the profit and take the job for overhead.

B. match the lowest bid of another contractor.

C. do the job at cost.

D. stick close to your bid even if it means losing the job.

A

D. stick close to your bid even if it means losing the job

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

You may not represent yourself in court and must be represented by an attorney if you are a:

A. sole proprietor.

B. corporation.

C. partnership.

D. qualifying individual.

A

B. corporation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A contractor must keep change orders on file:

A. for at least six months.

B. for at least five vears.

C. until the project is completed.

D. for tax purposes.

A

B. for at least five vears

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What should be done with the contractor’s copy of an employee’s Form W-2?

A. File the copy in the contractor’s office.

B. Give the copy to the employee.

C. Submit the copy with the contractor’s
payroll tax return.

D. Destroy the copy to protect the employee’s right to privacy.

A

A. File the copy in the contractor’s office.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

You must report FICA and withheld income tax (Form 941) every:

A. month

B. two months

C. three months

D. four months

A

C. three months

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

If you get a quote from a material supplier, the quote is:

A. not firm and can change.

B. a guaranteed price that cannot increase.

C. firm and includes all materials.

D. firm but may not include all materials.

A

D. firm but may not include all materials.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

If a home solicitation contract is signed on Friday afternoon, what is the deadline for cancellation?

A. Tuesday midnight

B. Tuesday afternoon

C. Wednesday midnight

D. Wednesday afternoon

A

A. Tuesday midnight

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Contractors do not have to be licensed if:

A. all of their jobs are under $1,000.

B. they carry commercial general liability insurance.

C. the value of labor and materials for a job is under $500.

D. all potential customers are told that they are not licensed.

A

C. the value of labor and materials for a job is under $500.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

When there is a third-party lender, a home improvement contract is unenforceable against the buyer per the Contractors License Law and federal Truth in Lending Act, if;

A. obtaining a loan is a condition precedent to the contract, and the loan is not offered and/or accepted.

B. funding is provided by a government loan or grant.

C. the home improvement contract is sold by a salesperson.

D. the owner decides that a competing contractor will finish the remaining work for less than the amount stated in the contract.

A

A. obtaining a loan is a condition precedent to the contract, and the loan is not offered and/or accepted.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Who is responsible for selecting supplies for a first-aid kit for a jobsite?

A. first-aid tech

B. doctor

C. nurse

D. RN

A

B. doctor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Good accounting records are necessary for:

A. maintaining financial statements.

B. obtaining financing.

C. effective management.

D. all of the above.

A

D. all of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How long must an employer keep records of FUTA and other federal payroll taxes?

A. 2 years

B. 4 years

C. 6 years

D. 10 years

A

B. 4 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Which state agency issues an employer’s ID number?

A. Board of Equalization

B. Secretary of State

C. Employment Development Department

D. Franchise Tax Board

A

C. Employment Development Department

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

When asbestos is found in a home improvement project, who is responsible for the abatement?

A contractor

B. city inspector

C. Department of Building Safety

D. homeowner

A

D. homeowner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

A contractor is offering a job that will last at least six months but could last longer. What should the contractor tell people when interviewing for the job?

A. The job is temporary.

B. The job is permanent.

C. The job is temporary and my become permanent.

D. The job is part-time,

A

A. The job is temporary.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Workers’ compensation insurance covers injuries or illnesses:

A. in all cases.

B. resulting from unsafe conditions at the job site.

C. that are job-related.

D. that are not the employee’s fault.

A

C. that are job-related.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

A sales presentation was given in English to a foreign language speaking homeowner. Which of the following statements is correct about a home solicitation contract?

A. The contract must be in the foreign language of the homeowner.

B. The contract must be in English.

C. The contract must be in English and the homeowner’s foreign language.

D. The contract must be in the language of the homeowner’s lawyer.

A

B. The contract must be in English

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

A contact for the construction of a single-family dwelling must be signed by.

A. only the contractor.

B. only the owner.

C. the owner and contractor.

D. the architect, owner, and contractor.

A

C. the owner and contractor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

When would an employee be required to complete a new IRS Form W-4?

A. after a change in marital status

B. after a change in address and phone number

C. after a change in age

D. after a pay raise

A

A. after a change in marital status

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Time and material agreements for home improvement jobs must be written with a fixed price whenever it is anticipated that the total price could exceed:

A. $100.

B. $200.

C. $300.

D. $500.

A

D. $500.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

A swimming pool contract must include which of the following?

A. contract bond

B. performance bond

C. surety company’s name and address

D. plan and scale drawings

A

D. plan and scale drawings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Which of the following insurance policies would protect against a claim if a customer comes to the contractor’s office and falls down and suffers an injury?

A. Professional Liability

B. Builders Risk

C. Workers’ Compensation

D. Commercial Generator Liability

A

D. Commercial Generator Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Who is best qualified to submit plans and specifications for a residence?

A. architect

B. engineer

C. builder

D. owner

A

A. architect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Who is best prepared to submit a financial statement to a bank to obtain a loan?

A. owner

B. accountant

C. contractor

D. bookkeeper

A

B. accountant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Which of the following costs is the easiest for the contractor to control?

A. subcontract labor

B. employees who are paid hourly

C. indirect labor

D. direct labor

A

A. subcontract labor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Which of the following improvements does not require a building permit?

A. room addition

B. roof

C. in-ground swimming pool

D. painting and wallpaper hanging

A

D. painting and wallpaper hanging

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

To which agency does the employer send state unemployment insurance (UI) taxes?

A. IRS

B. EDD

C. Board of Equalization

D. Franchise Tax Board

A

B. EDD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

When may contractors licensed in other states do work in California?

A. After they obtain a California contractor’s license.

B. When their work is limited to one project per year.

C. When their contracts are with a public agency.

D. If their work is supervised by a California resident.

A

A. After they obtain a California contractor’s license.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Where would a contractor obtain a surety bond?

A. bank

B. credit union

C. insurance agent

D. CSLB

A

C. insurance agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Within how many days must an “Agreement to Arbitrate” be returned by the participants after being mailed by the Registrar?

A. within 60 calendar days

B. within 30 calendar days

C. within 15 calendar days

D. within 10 working days

A

B. within 30 calendar days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

A joint control company manages the:

A. time and materials costs.

B. home improvement contract writing.

C. disbursement of construction funds.

D. contractor’s personal business.

A

C. disbursement of construction funds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

The following clause is included in a contract:
“THE CONTRACTOR IS NOT RESPONSIBLE FOR DELAYS CAUSED BY WEATHER, EARTHQUAKES, FLOODS, OR OTHER ACTS OF GOD.”
This clause would limit the contractor’s liability for delays caused by:

A. suppliers not delivering materials on time.

B. a labor strike.

C. heavy rains.

D. lack of working capital.

A

C. heavy rains.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What type of lien release is required upon completion of a home improvement contract and payment?

A. unconditional Waiver and Release

B. conditional Waiver and Release

C. preliminary Waiver and Release

D. temporary waiver

A

A. unconditional Waiver and Release

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Change orders to a home improvement contract are required to be signed by:

A. an attorney.

B. the building inspector.

C. homeowner and contractor.

D. general contractor’s subcontractors.

A

C. homeowner and contractor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Which of the following best describes the difference between “claims-made” and “occurrence” types of liability insurance?

A. Unlike occurrence insurance, a claims-made policy covers claims made after the policy expires

B. An occurrence policy is intended to cover a particular one-time accident.

C. A claims-made policy is intended to cover a particular one-time accident.

D. Unlike claims-made coverage, occurrence insurance covers claims made after the policy expires.

A

D. Unlike claims-made coverage, occurrence insurance covers claims made after the policy expires.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

The most important thing to include when advertising for construction work is:

A. the company’s complete name style.

B. a list of all the owners of the company.

C. the contractor’s license number.

D. the company’s address.

A

C. the contractor’s license number

42
Q

When should safety clothing be worn on a job site?

A. when pouring concrete

B. when operating machinery

C. when you arrive at the job site

D. all of the above

A

D. all of the above

43
Q

What happens to a corporation and its contractor’s license if an officer or a stockholder leaves or dies?

A. Nothing, unless the officer is the qualifying individual.

B. The corporation will be terminated and the license cancelled.

C. The corporation will transfer to the State.

D. The corporation’s license must be inactivated until the officer or stockholder is replaced.

A

A. Nothing, unless the officer is the qualifying individual.

44
Q

Which of the following is most important regarding safety at a job site?

A. The contractor should show workers how to use safety equipment.

B. The contractor should provide and require the workers to use safety equipment.

C. The contractor should inspect the safety equipment every day.

D. The contractor should properly store safety equipment when not in use.

A

B. The contractor should provide and require the workers to use safety equipment.

45
Q

When a job requires the contractor to pressure-wash paint from a home built before 1978, it is best for the contractor to inform the homeowner about the possible existence of lead paint material issues:

A. at their first meeting.

B. only if lead is discovered.

C. at the completion of the job.

D. at the signing of the contract.

A

A. at their first meeting

46
Q

An electrical contractor agrees to install 100 recessed light fixtures for $5,000. The owner later requests that 10 additional recessed light fixtures be installed, bringing the total to 110 fixtures.
How much should the electrician charge to install 110 recessed light fixtures?

A. $550

B. $5,500

C. $6,000

D. $6,500

A

B. $5,500

47
Q

What should you do if a client is unhappy with your work?

A. Keep working and leave the client alone to cool off.

B. Continue working and worry about the client at the end of the job.

C. Ignore the client until after all work is done.

D. Handle the problem in a timely manner when it comes up.

A

D. Handle the problem in a timely manner when it comes up.

48
Q

An owner objects to the materials being used for a job and complains to a worker. Upon learning of the complaint, the contractor should:

A. write a letter to the owner as soon as possible.

B. ignore the complaint.

C. contact the owner immediately and explain why the specific materials are being used.

D. order the crew to stop work immediately until an on-site meeting can be scheduled with the owner.

A

D. order the crew to stop work immediately until an on-site meeting can be scheduled with the owner.

49
Q

Which of the following is not eligible to receive benefits from a contractor’s license bond?

A. A customer who was defrauded by the contractor.

B. A subcontractor involved in an accident on the job site.

C. An employee who was not paid wages that were due.

D. A homeowner with a valid claim that the contractor abandoned the job.

A

B. A subcontractor involved in an accident on the job site.

50
Q

What is the best way to establish if a contractor’s license is active and in good standing?

A. Ask the contractor if he or she is licensed.

B. Look at the contractor’s pocket license.

C. Ask to see the contractor’s license bond.

D. Check with the CSLB.

A

D. Check with the CSLB.

51
Q

What is the statute of limitations for a consumer’s complaint on latent construction defects?

A. 12 years

B. 10 years

C. 5 years

D. 4 years

A

B. 10 years

52
Q

If a contractor changes a business name or address or has any changes in the personnel listed on the license, the Registrar must be notified within:

A. 10 days.

B. 45 days.

C. 60 days.

D. 90 days.

A

D. 90 days.

53
Q

What is the most common reason that a license is suspended?

A. one serious accident

B. two serious accidents

C. a lapse of the contractor’s bond

D. employee complaints

A

C. a lapse of the contractor’s bond

54
Q

How deep must asbestos be buried within 24 hours of delivery at a disposal site?

A. 6 inches

B 10 inches

C. 12 inches

D. 18 inches

A

A. 6 inches

55
Q

On a job application, John states he has experience soldering pipe. What is the best way to determine his soldering ability?

A. Rely on the job application.

B. Talk to his last employer.

C. Watch John solder pipe.

D. Review photographs of John’s last soldering job.

A

C. Watch John solder pipe

56
Q

What does a legend on a plan represent?

A. the scale

B. the name of the plans examiner

C. the name of the contractor

D. the symbols

A

D. the symbols

57
Q

What can be flexibly interpreted when the following statement is in a contract?
“THE CONTRACTOR IS NOT RESPONSIBLE FOR DELAYS CAUSED BY NATURAL DISASTERS OR ACTS OF GOD.”

A. joint control

B. payment schedule

C. the dates for starting and finishing work

D. change orders

A

C. the dates for starting and finishing work

58
Q

A health and safety citation or order must be:

A. handed out by supervisors at their quarterly meetings.

B. handed out with monthly pay checks.

C. posted in a conspicuous place at the job site where the violation occurred.

D. posted in an administrative office that is available to employees.

A

C. posted in a conspicuous place at the job site where the violation occurred.

59
Q

When a contract includes a “complete agreement” clause:

A. the contractor and owner are bound by the exact words of the contract.

B. the work must be completed by a certain date or the contractor must pay liquidated damages.

C. the contractor must supply a completion bond.

D. the owner agrees to pay for the completion bond.

A

A. the contractor and owner are bound by the exact words of the contract.

60
Q

Of the following, which may not be determined from a completed job application?

A. applicant’s former employers

B. applicant’s work experience

C. applicant’s honesty and integrity

D. applicant’s schooling

A

C. applicant’s honesty and integrity

61
Q

What is the best way to make sure vour bond and insurance are up-to-date?

A. Choose insurance companies that will notify you by mail when your bond or insurance policy
is due to expire.

B. Review your bond and insurance policies every two months.

C. Purchase only short-term bonds and insurance.

D. Review your bond and insurance policies before each bid is prepared.

A

D. Review your bond and insurance policies before each bid is prepared

62
Q

Where should the following statement be placed in a written contract?
“THE CONTRACTOR IS NOT RESPONSIBLE FOR DELAYS CAUSED BY WEATHER, EARTHQUAKES, FLOODS, OR OTHER ACTS OF GOD.”

A. before the job description

B. after the signatures

C. after the change order clause

D. after the approximate work period

A

D. after the approximate work period

63
Q

If a contractor discovers a serious code violation in an approved set of plans, which of the following statements is correct?

A. The contractor may proceed because the plans were approved.

B. Work must stop until the contractor reports the violation and the plans are corrected.

C. Work may continue if the contractor files a notice of non-responsibility.

D. Work may continue as long as the appropriate agency is notified.

A

B. Work must stop until the contractor reports the violation and the plans are corrected.

64
Q

Two licensed contractors want to contract as the prime on a $300,000 project. Can they work together on the same project without obtaining a joint venture license?

A. No.

B. Yes, if both of the contractors are licensed.

C. Yes, as long as the owner agrees.

D. Yes, because the contract price is less than $500,000.

A

A. No

65
Q

If a contract provides for a retention of 5% of a $135,000 total job price, how much may the owner withhold?

A. $6,500

B. $6,675

C. $6,700

D. $6,750

A

D. $6,750

66
Q

What should you have with you during a walk-through near the end of the job?

A. original cost estimate

B. original blueprints

C. laptop

D. punch list

A

D. punch list

67
Q

Who is responsible for establishing that a subcontractor is duly licensed?

A. A subcontractor is not required to prove that he or she is licensed.

B. The prime contractor is responsible.

C. No one is responsible if the subcontractor will work fewer than 10 days on a project.

D. The owner is responsible.

A

B. The prime contractor is responsible

68
Q

Which of the following statements about fixed expenses is most correct?

A. Overhead is generally considered a fixed expense.

B. Fixed expenses vary over time.

C. Direct labor is generally considered a fixed expense.

D. Fixed expenses usually amount to less than 10% of total expenses.

A

A. Overhead is generally considered a fixed expense.

69
Q

Under what circumstances must you inform an employee of exposure to a toxic substance?

A. in all cases

B. if the exposure was more than four hours

C. if there are 10 or more employees

D. if the employee asks

A

A. in all cases

70
Q

Waiver of the Contractors License Law and federal Truth in Lending Act regarding a loan as a condition precedent to a home improvement contract is permitted if the:

A. weather prohibits starting on time.

B. waiver is written and signed by the owner of the property and the work is for emergency repairs.

C. contract work is extended for additions.

D. contractor does not agree with the buyer on workmanship.

A

B. waiver is written and signed by the owner of the property and the work is for emergency repairs.

71
Q

Which of the following statements is used to determine the “acid test?

A. income statement

B. cash-flow statement

C. balance sheet

D. annual income tax return

A

C. balance sheet

72
Q

An employee works 8 hours per day Monday through Thursday, is off on Friday for a holiday, then works 8 hours on Saturdav and 8 hours on Sunday. At what rate is the employee paid for working on Sunday?

A. the regular rate

B. 2-1/2 times the regular rate

C. twice the regular rate

D. 1-1/2 times the regular rate

A

D. 1-1/2 times the regular rate

73
Q

An “aging” report is:

A. used to determine interest on a loan.

B. a method of tracking inventory.

C. a type of depreciation schedule.

D. a way of keeping track of overdue accounts.

A

D. a way of keeping track of overdue accounts

74
Q

Which type of job-related injury requires the employer to make a written report?

A. an injury requiring just first aid

B. an injury requiring medical attention beyond first aid

C. if the employee is required to return to work after the injury

D. all of the above

A

B. an injury requiring medical attention beyond first aid

75
Q

What percentage of the normal wage must you pay a minor?

A. 80%

B. 90%

C. 100%

D. 110%

A

C. 100%

76
Q

A time card must include:

A. how much a person earns per hour.

B. where the job site is located.

C. the days and hours the person worked.

D. the employee’s birth date and Social Security number.

A

C. the days and hours the person worked.

77
Q

The most accurate method of estimating the cost of materials for a remodeling job is:

A. stick-by-stick.

B. material take-off.

C. current price list.

D. price per square foot.

A

A. stick-by-stick

78
Q

A stop payment notice on a public works project could be used to:

A. stop all payments to the prime contractor until all subcontractors are paid in full.

B. lien the property.

C. withhold sufficient money from the prime contractor to pay the subcontractor who files the stop payment notice.

D. stop all construction activity on a particular job.

A

C. withhold sufficient money from the prime contractor to pay the subcontractor who files the stop payment notice.

79
Q

What is the relationship between a prime contractor and a subcontractor?

A. employer-employee

B. parallel

C. contractual

D. no relationship

A

C. contractual

80
Q

Of the following, which is the best source of jobs for small and medium-sized contractors?

A. newspaper

B. referrals

C. Internet

D. building department

A

B. referrals

81
Q

DOSH investizators who are denied access to inspect places for unsafe conditions:

A. will send a letter of reprimand.

B. may return with an inspection warrant issued by a judge.

C. may sneak in after everyone leaves for the day.

D. are limited to taking notes of what they can see from outside the property line.

A

B. may return with an inspection warrant issued by a judge.

82
Q

A contractor’s California personal income tax return should be sent to which office?

A. Franchise Tax Board

B. EDD

C. IRS

D. Board of Equalization

A

A. Franchise Tax Board

83
Q

What is the purpose of the Cal/OSHA Consultation Service?

A. Adopts safety and health laws and standards.

B. Helps employers voluntarily follow safety and health laws and standards.

C. Makes decisions on appeals of citations for safety and health violations.

D. Issues permits and registers contractors who do asbestos-related work.

A

B. Helps employers voluntarily follow safety and health laws and standards

84
Q

Without reducing risk, what is the best way to minimize insurance costs?

A. Compare premiums and coverage yearly.

B. Decrease the coverage.

C. Increase the deductible.

D. Get a policy for overlapping coverage.

A

A. Compare premiums and coverage yearly

85
Q

The most economical way to obtain insurance is to:

A. choose one agent who handles all lines of insurance.

B. price-shop with several agents.

C. deal with only one insurance company.

D. change insurance companies frequently.

A

B. price-shop with several agents

86
Q

An employer would issue IRS Form 1099 to:

A. an employee who is currently working.

B. an employee who is not currently working.

C. a nonemployce who was paid at least $600 for services during the year.

D. any nonemployee regardless of the amount paid for services.

A

C. a nonemployce who was paid at least $600 for services during the year.

87
Q

Patent defects are:

A. hidden.

B. readily observable flaws or faults

C. the lender’s responsibility.

D. the owner’s responsibility.

A

B. readily observable flaws or faults

88
Q

An employee suffers a deep gushing wound on the forearm. What should be done first to control bleeding?

A. Apply a tourniquet.

B. Apply direct pressure to the wound.

C. Apply pressure to the brachial artery.

D. Apply pressure 6” below the wound or joint.

A

B. Apply direct pressure to the wound

89
Q

Your application to a surety company for a contractor’s license bond is rejected. If you believe you were unfairly denied or discriminated against, you would file a complaint with the:

A. Contractors State License Board.

B. local Small Claims Court.

C. Insurance Commissioner.

D. insurance broker.

A

C. Insurance Commissioner

90
Q

When there are wide fluctuations in working capital, which of the following is a construction company’s best resource for paying bills on time?

A. bond

B. line of credit

C. owner’s personal savings

D. SBA loan

A

B. line of credit

91
Q

Of the following, which is the best way to determine if more materials must be ordered?

A. Compare the present inventory to the inventory for last year.

B. Walk the job.

C. Ask a supervisor.

D. Compare material lists for similar jobs.

A

B. Walk the job

92
Q

If a client continues to request change orders, you should:

A. charge administrative fees.

B. collect change order costs as you go.

C. not proceed until your client has signed each change order.

D. all of the above.

A

D. all of the above

93
Q

What is the purpose of the following statement in a contract?
“THE AGENT IS LIABLE FOR FINAL PAYMENT.”

A. The agent is responsible for final payment.

B. The owner is responsible for final payment.

C. The owner and the agent are responsible for final payment.

D. None of the above.

A

A. The agent is responsible for final payment.

94
Q

Of the following, which is the best example of a vague statement in a contract?

A. The second payment is due when 60% of the work is done.

B. The contractor warranties all work for one year.

C. Rehang the front door so that it closes and locks properly.

D. Fill in and smooth the dog scratches as much as possible and paint the door.

A

D. Fill in and smooth the dog scratches as much as possible and paint the door

95
Q

Of the following, which is the most reasonable method of preventing disputes about change orders?

A. Explain the change order procedure at the time you request payment for the extra work.

B. Wait until a change is necessary before discussing change orders with the owner.

C. Include the change order procedure in the original contract.

D. Negotiate a price for change orders after all work has been completed.

A

C. Include the change order procedure in the original contract.

96
Q

Which type of bond guarantees job completion?

A. payment bond

B. performance bond

C. bid bond

D. labor and materials bond

A

B. performance bond

97
Q

When is an employer not required to keep records of work-related injuries or illnesses on Cal OSHA Form 300?

A. 10 employees or less

B. 20 emplovees or less

C. 30 employees or less

D. when the business is family operated

A

A. 10 employees or less

98
Q

A contractor is going to build a home in an unfamiliar town. What would be the most important thing to do before submitting a bid and beginning work?

A. Check with suppliers about where to buy materials.

B. Check to see what permits and regulations may be different.

C. Check employee wages.

D. Check with her employees to see if they are willing to commute.

A

B. Check to see what permits and regulations may be different.

99
Q

Who is required to fill out IRS Form I-9?

A. only aliens authorized to work

B. only U.S. citizens

C. all employees

D. only noncitizen nationals of U.S.

A

C. all employees

100
Q

Which of the following is not by itself an acceptable form of documentation for filling out IRS Form I-9?

A. Social Security card

B. green card

C. U.S. passport

D. Employment Authorization Document

A

A. Social Security card