CRC Risk Management & Site Safety 3

Question 1

A contractor discovers lead-based paint in a pre-1978 home during a renovation. Which EPA rule governs safe work practices?

Accepted Answer

EPA RRP Rule (Renovation, Repair and Painting Rule)

Answer

The EPA's RRP Rule (40 CFR Part 745) requires certified contractors to follow specific lead-safe work practices in pre-1978 homes during renovation activities.

Question 2

Which document transfers the risk of loss for a structure under construction from the contractor to the insurance company?

Accepted Answer

Builder's Risk Insurance Policy

Answer

Builder's Risk Insurance (also called Course of Construction Insurance) covers the structure and materials against damage or loss during the construction period.

Question 3

What is the purpose of an 'Additional Insured' endorsement on a subcontractor's liability policy?

Accepted Answer

It extends the subcontractor's liability coverage to protect the general contractor from claims arising from the sub's work

Answer

An Additional Insured endorsement adds the general contractor to the subcontractor's policy, so the GC is covered for claims arising from the sub's operations.

Question 4

According to OSHA, what is the minimum required height for standard guardrail systems on residential construction walking-working surfaces?

Accepted Answer

42 inches (with a tolerance of plus or minus 3 inches)

Answer

OSHA standard 29 CFR 1926.502 requires top rails of guardrail systems to be 42 inches (±3 inches) in height above the walking-working surface.

Question 5

A residential contractor fails to renew their state license, then completes a project. What is the most significant legal risk?

Accepted Answer

The contractor may be unable to enforce the construction contract and collect payment

Answer

Many states bar unlicensed contractors from enforcing contracts in court, meaning the contractor cannot legally collect payment even for completed work.

(CRC) Certified Residential Contractor Practice Test

(CRC) Certified Residential Contractor Practice Test

CRC Risk Management & Site Safety 3