C7 C7 Contractor Licensing & Business Requirements 5

Question 1

A C7 contractor's license has been expired for 6 years. What is their reinstatement option?

Accepted Answer

Apply as a new applicant — licenses expired over 5 years cannot be reinstated

Answer

A license expired for more than 5 years cannot be reinstated; the individual must apply as a new applicant and meet all current requirements.

Question 2

Under the California Prompt Payment Act, how many days after invoice does a general contractor have to pay a C7 subcontractor on a private project?

Accepted Answer

10 days

Answer

On private projects, the Prompt Payment Act requires general contractors to pay subcontractors within 10 days of receiving payment from the owner.

Question 3

A C7 contractor discovers that a subcontractor they hired is unlicensed. Under California law, the C7 contractor:

Accepted Answer

May be disciplined by CSLB and is jointly liable for damages

Answer

Hiring an unlicensed subcontractor exposes the C7 contractor to CSLB discipline and potential joint liability for the subcontractor's defective work.

Question 4

What is the minimum retention percentage a public agency may withhold from a C7 contractor's progress payments on a public works contract?

Accepted Answer

5% unless the contract specifies otherwise

Answer

California Public Contract Code limits retention on public works to 5%, with the contractor able to substitute securities in lieu of cash retention.

Question 5

A C7 contractor is convicted of a crime substantially related to contracting. CSLB's most likely disciplinary action is:

Accepted Answer

Revocation or suspension of the license after a formal hearing

Answer

A conviction substantially related to the contractor's qualifications triggers formal disciplinary proceedings that can result in suspension or revocation of the license.

(C7) California C7 Low Voltage Systems Contractor Certification Practice Test

(C7) California C7 Low Voltage Systems Contractor Certification Practice Test

C7 C7 Contractor Licensing & Business Requirements 5