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California Contractors License Test
Class Questions and Answers |
100% Correct Answer | Grade A+
Who does not need a contractors License? Ans: someone who does certain construction on commercial agricultural property The contractor surety Bond necessary for most contractors to obtain their license is in the amount of Ans: $15, When licensed as a Sole Proprietor the license belongs to Ans: the Company Which is true of an inactive license? Ans: Must be renewed every 4 Years How many classifications can an RME apply for? Ans: As many classifications as he or she can qualify for.
A prime contractor shall pay his or her subcontractors Ans: within 7 days of receipt of each progress payment A contractor wants to use a fictitious name as a business name style. When does the fictitious name statement needed to be filed? Ans: Before conducting Business During a declared state of emergency how much may a contractor increase his prices? Ans: 10%above the price just prior to the declared state of emergency. If John Burroughs the sole proprietor of a pluming company is applying for a license as am individual, which of the following name styles is not permitted? Ans: permitted: John Burroughs Burroughs Plumbing Co. J.B. Co. Not-Permitted: John Burroughs Inc. Active licenses must be registered every------ and inactive licenses should be registered every-----
Ans: Require the Prime Contractor to Supply a performance and Payment Bond. CSLB established the State Wide Investigative Fraud Team (SWIFT). CSLB'S SWIFT has the authority to: Ans: Cite those not properly licensed Which is not part of the Home Improvement Contract? Ans: Preliminary Notice What us the purpose of the Preliminary Notice? Ans: Assert Mechanic Liens and Stop notice Rights Preliminary Notices are filed? Ans: within 20 days from first furnishing labor or materials. Which of the following is the most important practices to follow when trying to avoid disagreements with an owner? Ans: Be sure to include a detailed description of the project and everything that is to be done in the contract.
Why should a contractor keep a record of all Change Orders? Ans: State law Requires It Which of the following people file a Stop Notice? Ans: a subcontractor contracted to do specialty trade and was not paid. Who signs a "Joint Control Agreement"? Ans: The lender, the property owner and the Prime Contractor. How long will the CSLB hold a contractor responsible for observable defects? Ans: 4 years The CSLB offers a free voluntary arbitration program for disputes alleged damages: Ans: Between $15,000 and $50, If a contractor includes provision in a contract for use of private arbitration and a dispute between the owner and the contractor makes an arbitration necessary, who will bare the cost of a private arbitrator? Ans: The Owner and contractor will slit the cost of the arbitration.
The costs of running your business including office expenses etc, is called: Ans: Overhead expenses Direct Labor is compromised of: Ans: cost for labor and payroll taxes Which of the following is an asset in the Balance sheet? Ans: Accounts Receivable Direct Costs Consist of: Ans: Direct Labor, Direct labor burden, direct materials and other direct costs. Good Cash Flow is achieved when: Ans: current liabilities are less than current assets Equity is: Ans: Total assets less total liabilities Networking Capital is:
Ans: the difference between current assets and current liabilities A contractor is preparing a bid for repairs and the contractor estimates his direct costs to b $1,000. the contractor knows that his overhead is 25% and the contractor wants a 5% profit the contractor should submit a bid for: Ans: $1,428.57 (1,000/.70) a contractor estimates labor and materials to be $2,500. Allowing for 15% overhead and 5% profit. what should the total bid be? Ans: $3,125 (2,500/.8) When business is bad which of the following Ans: Bid on jobs only if you can make a profit Unresolved conflicts will result in extra costs and loss time for which of the following? Ans: the client, contractor, and state. If you're working in a DIFICULT phase of a project and the owner comes to you with a complaint about the windows you have installed what do you do? Ans: Stop what you are doing and deal with the owners complaint
