Updated Test Questions

Question 1

On public works, the total retention withheld may not exceed ___ of the contract price .

Answer 1

5%

Question 2

A subcontractor signs an Unconditional Waiver and Release upon final payment . This means that :

Answer 2

Subcontractor has waived any lien, stop payment notice, or payment bond rights.

Question 3

If the plans and specifications for a job are vague or lack detail, contractors should :

Answer 3

Review the plans and specifications with the owner

Question 4

You would go to a District Court when :

Answer 4

1. A case involving federal law
2. Constitutional issues are involved
3. An interstate dispute

Question 5

If an employee violates a safety rule and causes injury to another employee, who is legally responsible ?

Answer 5

The Employer

Question 6

On a large job, what is the best method for scheduling ?

Answer 6

Critical Path Method ( CPM )

Question 7

Truth in Lending Act rescission rights apply when :

Answer 7

A non-purchase lien or security interest is taken in the consumer’s principal dwelling

Question 8

What is the MAXIMUM penalty for contracting with an inactive, suspended or expired license ?

Answer 8

Revocation of license

Question 9

Which building code should a contractor follow ?

Answer 9

Local code

Question 10

What will happen if a contractor who is awarded the bid on a public works project pays less than the prevailing wage ?

Answer 10

Contractor will be required to pay back-wages to the employees

Question 11

The purpose of a specification sheet attached to a set of plans is to:

Answer 11

Provide details that are not on the plans

Question 12

A contract can be canceled when there is consent through fraud or duress by:

Answer 12

The other party

Question 13

Which act establishes the rights of workers to organize into unions and negotiate contracts ?

Answer 13

The Wagner Act of 1935 ( aka National Labor Relations Act)

Question 14

Who do you register with in order to be a public works contractor ?

Answer 14

Department of Industrial (DIR)

Question 15

Prime contractor may serve a stop payment notice to ONLY who ?

Answer 15

Construction Lender

Question 16

When used together, these can be MOST effective when used on a private works project :

Answer 16

Stop payment notice and mechanic lien

Question 17

What sort of notes are you looking for when you get a set of as-built plans ?

Answer 17

Changes

Question 18

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 ?

Answer 18

1. Certified mail
2. Overnight mail
3. Personal delivery

Question 19

A notice of completion must be recorded within how many days ?

Answer 19

10 days after work is complete

Question 20

When can a materials supplier perfect a mechanics lien ?

Answer 20

After the goods have been installed in the structure

Question 21

How many days does a claimant have to record a Lis Pendens after filing a mechanics lien foreclosure lawsuit ?

Answer 21

20 days

Question 22

When bidding on work, what would you not include in the price of your bid ?

Answer 22

Workers Compensation Insurance premium

Question 23

Why should An owner request waivers of lien rights for work on residential property after paying the full contract amount ?

Answer 23

So prime contractors, subcontractor, and other claimants will not file liens.

Question 24

If a worker’s wages are garnished and labor contract provides less protection than the States guidelines, what does the law require?

Answer 24

The section of contract providing less protection is void

Question 25

If it discovered that the construction material in an area contain more than 0.1% asbestos what must be done?

Answer 25

The contractor should contact DOSH immediately

Question 26

If the federal tax obligation for a quarter is LESS than $2,500, the employer MAY report and pay taxes quarterly on that form ?

Answer 26

Form 941

Question 27

If the federal tax obligation for a quarter is MORE than $2,500, the employer MAY report and pay taxes when ?

Answer 27

Monthly, semi weekly or daily, depending on amount

Question 28

Home improvement salesperson registration expires when?

Answer 28

Every 2 years from the last day of the month in which it was issued

Question 29

If a subcontractor wants to substitute materials on a job, who must approve the substitution ?

Answer 29

The owner

Question 30

Which two types of loans is a contractor most likely to engage in ?

Answer 30

Construction or permanent

Question 31

Construction loans are typically short term with a time limit of how long?

Answer 31

6 months to 1 year

Question 32

There is a near-miss situation on a job. What steps should the employer take?

Answer 32

The unsafe situation must be investigated, and the investigation must includes a written report.

Question 33

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 ?

Answer 33

Each worker

Question 34

Where is truck insurance listed on an income statement ?

Answer 34

Operating expenses ( aka indirect expenses)

Question 35

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 ?

Answer 35

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.

Question 36

At how many decibels should ear protection be worn?

Answer 36

90 dB

Question 37

What is an example of non- productive component on a bid?

Answer 37

Travel time

Question 38

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 ?

Answer 38

The licensed contractor

Question 39

A homeowner has not been paying the contractor, and all work has stopped for 60 days. What is the contractor’s next step ?

Answer 39

Send the homeowner a Notice of Mechanics Lien Form with an unfiled copy of lien claim.

Question 40

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?

Answer 40

When it is an emergency situation and the owner cannot get the money soon enough.

Question 41

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?

Answer 41

5 years

Question 42

A constractor is required to report a construction-related civil court judgement to the CSLB within how many days of the judgement date?

Answer 42

90 days of the judgment date.

Question 43

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 ?

Answer 43

3 business days

Question 44

A contractor must pay a dump truck carrier for all transportation charges by ?

Answer 44

By the 20th day following the last day of the month in which the transportation was performed.

Question 45

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.

Answer 45

5 days.

Question 46

What is the minimum amount of sick times employers are required to allow employees to use per year ?

Answer 46

24 hours or 3 days

Question 47

Warning signs at the location of asbestos work must be readable up to ____ ft away

Answer 47

20 feet

Question 48

Contractors working on public works projects must renew their registrations with the DIR by:

Answer 48

July 1st