Mixed Deck — All CC Topics Flashcards

How often does a contractor typically need to renew their certificate or license?

Answer: Annually

Contractor licenses and certificates are typically issued for a specific period, most commonly one year. To maintain their legal authority to operate, contractors are required to renew their certificate or license annually. This process ensures that contractors continue to meet current regulatory requirements, maintain necessary insurance, and complete any required continuing education.

What does a contractor's 'markup' cover when pricing a job?

Answer: Overhead costs and profit margin added on top of direct project costs

Markup is the percentage added to direct costs to recover overhead expenses and generate a profit for the business.

Under OSHA, how soon must a workplace fatality be reported to OSHA?

Answer: Within 8 hours of the incident

OSHA requires employers to report work-related fatalities to OSHA within 8 hours and in-patient hospitalizations, amputations, or eye losses within 24 hours.

Which authority is most likely to issue a plumbing contractor license?

Answer: State Board of Plumbing Examiners

Plumbing contractor licenses are typically issued by a specialized state board, such as a State Board of Plumbing Examiners. These boards are responsible for establishing the qualifications, administering examinations, and enforcing regulations specific to the plumbing trade. This ensures that plumbers are knowledgeable about health and safety codes related to water supply and waste disposal, protecting public health.

Which tax form must a contractor issue to unincorporated subcontractors paid $600 or more in a tax year?

Answer: Form 1099-NEC

Contractors must issue IRS Form 1099-NEC to independent subcontractors paid $600 or more to report non-employee compensation.

Which party is protected by a contractor's surety bond?

Answer: The client or project owner

A contractor's surety bond is specifically designed to protect the client or project owner. If the contractor fails to complete the work, adhere to regulations, or pay subcontractors as agreed, the client can file a claim against the bond to recover financial losses. This provides a layer of financial security for those hiring the contractor.

What does 'markup' represent in a contractor's bid?

Answer: The amount added to direct costs to cover overhead and profit

Markup is the percentage added to the direct costs of a project to cover the contractor's overhead expenses and desired profit margin.

Which entity in the US typically oversees contractor licensing at the state level?

Answer: State Contractors State License Board or similar agency

Each state has a dedicated licensing board or agency (e.g., CSLB in California) that administers and enforces contractor licensing.

When preparing a bid, which document outlines the rules, conditions, and procedures contractors must follow during the bidding process?

Answer: Instructions to Bidders

Instructions to Bidders is the document that details the rules, submission requirements, and procedures all bidders must follow when preparing and submitting their bids.

What is a 'liquidated damages' clause in a construction contract?

Answer: A pre-agreed daily penalty for project delays beyond the contract completion date

Liquidated damages are a pre-estimated, agreed-upon amount charged to the contractor for each day work is not completed by the specified deadline.

Who is typically responsible for issuing contractor bonds?

Answer: Surety Bond Companies

Contractor bonds, specifically surety bonds, are financial guarantees issued by specialized surety bond companies. These companies assess the contractor's financial stability and reputation before issuing a bond. The bond acts as a promise that the contractor will fulfill their contractual obligations, protecting the client if the contractor fails to do so.

What happens if a contractor begins work before obtaining the required building permit?

Answer: The contractor may face stop-work orders, fines, and required demolition of unpermitted work

Building without a permit is a code violation that can result in stop-work orders, financial penalties, and in some cases, mandatory removal of non-compliant construction.

What is a 'pay-when-paid' clause in a subcontract?

Answer: A provision making subcontractor payment contingent on the GC first receiving payment from the owner

Pay-when-paid clauses shift the timing of payment to subcontractors based on when the general contractor receives funds from the project owner.

What does 'prompt payment' legislation require of general contractors regarding subcontractors?

Answer: Subcontractors must be paid within a set number of days after the GC receives payment

Prompt payment laws establish mandatory timelines for passing funds down the payment chain from owner to GC to subcontractor.

What is the primary purpose of requiring a contractor to pass a licensing examination?

Answer: To verify competency and knowledge of trade and laws

Licensing exams ensure contractors have adequate knowledge of their trade, building codes, and applicable laws.

What is the OSHA-required minimum width for scaffolding platforms used by construction workers?

Answer: 18 inches minimum

OSHA's 29 CFR 1926.452 requires scaffold platforms to be at least 18 inches wide to provide sufficient working space and reduce fall risk.

Which of the following is typically required before a contractor can file a mechanics lien?

Answer: Serving a preliminary notice to the property owner

Most states require a preliminary notice (also called a pre-lien notice) to be sent to the property owner within a set timeframe as a prerequisite to lien rights.

Who typically pays for the contractor's surety bond?

Answer: The contractor

The contractor is responsible for paying the premium for their surety bond. While the bond protects the client or project owner, it is a cost of doing business for the contractor, demonstrating their commitment to fulfilling obligations. The premium amount is typically a small percentage of the total bond amount, reflecting the risk assessed by the surety company.

Which of the following covers medical expenses for injuries sustained by a contractor's employees on the job site?

Answer: Worker’s Compensation Insurance

Worker's Compensation Insurance specifically covers medical expenses, lost wages, and rehabilitation costs for a contractor's employees who are injured or become ill as a direct result of their job. This insurance is legally mandated in most states for employers, providing a crucial safety net for workers and protecting the employer from direct liability for workplace injuries.

What is the purpose of an OSHA 300 Log?

Answer: To record all work-related injuries and illnesses occurring in the workplace throughout the year

The OSHA 300 Log is a required injury and illness recordkeeping form that tracks work-related incidents to identify patterns and improve workplace safety.