Practice Test Geeks(CRC) Certified Residential Contractor Practice Test
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Client Relations & Contract Administration Flashcards

7 cards from real CRC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Client Relations & Contract Administration flashcards as text

  1. Which method of dispute resolution in a construction contract requires both parties to present their case before a neutral third party whose decision is legally binding?

    Answer: Arbitration

    Arbitration involves a neutral arbitrator who hears both sides and issues a binding decision, making it faster and less expensive than litigation.

  2. A contractor must provide a Notice to Owner in Florida primarily to:

    Answer: Preserve the contractor's right to file a mechanics lien if unpaid

    Serving a Notice to Owner (or preliminary notice) within the required timeframe preserves the contractor's or supplier's lien rights on the property.

  3. When a homeowner signs a contract in their home, federal law (FTC Cooling-Off Rule) gives them the right to cancel within:

    Answer: 3 business days

    The FTC Cooling-Off Rule allows consumers to cancel contracts signed at their home or away from the seller's permanent place of business within 3 business days.

  4. An unconditional lien waiver on final payment means the subcontractor:

    Answer: Waives all lien rights immediately upon signing, regardless of whether payment is received

    An unconditional waiver releases all lien rights immediately upon execution, so contractors must ensure payment is received before signing.

  5. A punch list in residential construction serves primarily to:

    Answer: Document incomplete or deficient work items to be corrected before final payment

    A punch list catalogs remaining deficiencies and incomplete items that must be resolved before the contractor can receive final payment.

  6. Which contract provision protects a contractor from liability for delays caused by hurricanes, floods, or other unforeseeable events?

    Answer: Force majeure clause

    A force majeure clause excuses a party from performance obligations when extraordinary events beyond their control prevent timely completion.

  7. Retainage in a construction contract refers to:

    Answer: A percentage of each payment withheld until satisfactory project completion

    Retainage (typically 5–10%) is withheld from each progress payment to ensure the contractor completes all work and corrects deficiencies before final payment.