CFC CFC Business Operations & Licensing 1 — Questions and Answers
Question 1: What type of license is typically required to legally operate as a fence contractor in most US states?
- General contractor license
- Specialty or subcontractor license specific to fencing (Correct answer)
- Electrical contractor license
- Landscaping license
Correct answer: Specialty or subcontractor license specific to fencing
Most states require fence contractors to hold a specialty or subcontractor license specific to fencing work before legally performing installations.
Question 2: Which document outlines the scope of work, payment terms, and project timeline between a fence contractor and a client?
- Building permit
- Site survey
- Written contract (Correct answer)
- Material receipt
Correct answer: Written contract
A written contract defines the scope of work, payment schedule, project timeline, and responsibilities, protecting both parties legally.
Question 3: What is the primary purpose of carrying general liability insurance as a fence contractor?
- To cover employee wages
- To protect against property damage and injury claims (Correct answer)
- To pay for material costs
- To obtain a business license
Correct answer: To protect against property damage and injury claims
General liability insurance protects the contractor against claims arising from property damage or bodily injury caused during fence installation.
Question 4: In most US states, workers' compensation insurance is required when a fence contractor employs how many workers?
- More than 10 employees
- More than 5 employees
- At least one employee (Correct answer)
- Only full-time employees
Correct answer: At least one employee
Most states mandate workers' compensation coverage as soon as a fence contractor hires at least one employee to cover work-related injuries.
Question 5: A contractor's surety bond primarily protects:
- The contractor from business losses
- The client if the contractor fails to complete the job (Correct answer)
- Employees from workplace injuries
- Materials from theft
Correct answer: The client if the contractor fails to complete the job
A surety bond is a three-party agreement that compensates the client if the contractor fails to fulfill contractual obligations.
Question 6: Which federal agency requires fence contractors with employees to maintain OSHA 300 injury and illness logs?
- EPA
- OSHA (Correct answer)
- FHWA
- SBA
Correct answer: OSHA
OSHA (Occupational Safety and Health Administration) requires employers meeting certain size thresholds to record workplace injuries on Form 300.
CFC CFC Business Operations & Licensing 1
What type of license is typically required to legally operate as a fence contractor in most US states?