Updated Test Questions Flashcards
On public works, the total retention withheld may not exceed ___ of the contract price .
5%
A subcontractor signs an Unconditional Waiver and Release upon final payment . This means that :
Subcontractor has waived any lien, stop payment notice, or payment bond rights.
If the plans and specifications for a job are vague or lack detail, contractors should :
Review the plans and specifications with the owner
You would go to a District Court when :
- A case involving federal law
- Constitutional issues are involved
- An interstate dispute
If an employee violates a safety rule and causes injury to another employee, who is legally responsible ?
The Employer
On a large job, what is the best method for scheduling ?
Critical Path Method ( CPM )
Truth in Lending Act rescission rights apply when :
A non-purchase lien or security interest is taken in the consumer’s principal dwelling
What is the MAXIMUM penalty for contracting with an inactive, suspended or expired license ?
Revocation of license
Which building code should a contractor follow ?
Local code
What will happen if a contractor who is awarded the bid on a public works project pays less than the prevailing wage ?
Contractor will be required to pay back-wages to the employees
The purpose of a specification sheet attached to a set of plans is to:
Provide details that are not on the plans
A contract can be canceled when there is consent through fraud or duress by:
The other party
Which act establishes the rights of workers to organize into unions and negotiate contracts ?
The Wagner Act of 1935 ( aka National Labor Relations Act)
Who do you register with in order to be a public works contractor ?
Department of Industrial (DIR)
Prime contractor may serve a stop payment notice to ONLY who ?
Construction Lender
When used together, these can be MOST effective when used on a private works project :
Stop payment notice and mechanic lien
What sort of notes are you looking for when you get a set of as-built plans ?
Changes
What are the ways a client must submit a claim for service and repair of a defect on a fit and finish items after a remodel ?
- Certified mail
- Overnight mail
- Personal delivery
A notice of completion must be recorded within how many days ?
10 days after work is complete
When can a materials supplier perfect a mechanics lien ?
After the goods have been installed in the structure
How many days does a claimant have to record a Lis Pendens after filing a mechanics lien foreclosure lawsuit ?
20 days
When bidding on work, what would you not include in the price of your bid ?
Workers Compensation Insurance premium
Why should An owner request waivers of lien rights for work on residential property after paying the full contract amount ?
So prime contractors, subcontractor, and other claimants will not file liens.
If a worker’s wages are garnished and labor contract provides less protection than the States guidelines, what does the law require?
The section of contract providing less protection is void
If it discovered that the construction material in an area contain more than 0.1% asbestos what must be done?
The contractor should contact DOSH immediately
If the federal tax obligation for a quarter is LESS than $2,500, the employer MAY report and pay taxes quarterly on that form ?
Form 941
If the federal tax obligation for a quarter is MORE than $2,500, the employer MAY report and pay taxes when ?
Monthly, semi weekly or daily, depending on amount
Home improvement salesperson registration expires when?
Every 2 years from the last day of the month in which it was issued
If a subcontractor wants to substitute materials on a job, who must approve the substitution ?
The owner
Which two types of loans is a contractor most likely to engage in ?
Construction or permanent
Construction loans are typically short term with a time limit of how long?
6 months to 1 year
There is a near-miss situation on a job. What steps should the employer take?
The unsafe situation must be investigated, and the investigation must includes a written report.
Following the completion of a home improvement project of a major phase of construction and upon payment, who is responsible for signing a Labor Lien Release ?
Each worker
Where is truck insurance listed on an income statement ?
Operating expenses ( aka indirect expenses)
On a private works project , the owner failed to make a payment by the due date specified in the contract and is not disputing the work performed. What can the prime contractor do ?
The prime contractor may serve the owner with a stop work order stating the work will stop if payment is not made within 10 days from the date of service of the order.
At how many decibels should ear protection be worn?
90 dB
What is an example of non- productive component on a bid?
Travel time
THE CSLB’s arbitration program is mandatory for disputes alleging damages less than $15,000. If the “ARBITRATION OF DISPUTES” clause is not included and initialed by both parties in a home improvement contract, arbitration mat not be enforced against any person other than who ?
The licensed contractor
A homeowner has not been paying the contractor, and all work has stopped for 60 days. What is the contractor’s next step ?
Send the homeowner a Notice of Mechanics Lien Form with an unfiled copy of lien claim.
Assuming the owner has a good credit rating and debt is secured, when does it make the most sense for a contractor to finance a job?
When it is an emergency situation and the owner cannot get the money soon enough.
The Registrar may waive the examination requirement if the applicant has passed the law and business and trade examination for the same trade classification within the past how many years?
5 years
A constractor is required to report a construction-related civil court judgement to the CSLB within how many days of the judgement date?
90 days of the judgment date.
According to the federal Truth in Lending Act, when there is a third-party lender, the home improvement contract is unenforceable against the buyer if the buyer rescinds the loan within how many business days ?
3 business days
A contractor must pay a dump truck carrier for all transportation charges by ?
By the 20th day following the last day of the month in which the transportation was performed.
If contractor discovers an error after submitting a bid on a public works project, he should give the public entity a written notice of the mistakes within ____ days after opening of the bids.
5 days.
What is the minimum amount of sick times employers are required to allow employees to use per year ?
24 hours or 3 days
Warning signs at the location of asbestos work must be readable up to ____ ft away
20 feet
Contractors working on public works projects must renew their registrations with the DIR by:
July 1st
