FREE General Contractor License Law Questions and Answers

Question 1

How much cash can be given as a deposit on a home renovation project to a contractor?

Accepted Answer

10 % or $1000.00 whichever is less.

Answer

25%

Answer

No more than 50%

Answer

As much as your client will give

Question 2

If you see that a fireproof door is needed but it is not included in the drawings, you should:

Accepted Answer

Report it to the architect immediately

Answer

Install the fireproof door and bill the client

Answer

Talk to the owner as soon as possible

Answer

Quickly fix it yourself

Question 3

What is not required on a Home Renovation Contract?

Accepted Answer

A list of all personnel’s name and home address that is listed on the license

Answer

The approximate date of when the work is to begin and when it will be substantially completed

Answer

A description of the work that will be done, the materials used or installed and the equipment used or installed

Answer

A statement that the owner can require a Performance and Payment Bond, a notice, in at least 10 point print, in close proximity to the signature

Question 4

Which license or licenses are needed when a client wants carpets and paint done in their home?

Accepted Answer

Painting, flooring

Answer

General building

Answer

Painting

Answer

Painting, flooring and general building

Question 5

When should employees be given access to safety procedures?

Accepted Answer

When any new employees are hired

Answer

Every month to the supervisor.

Answer

When Cal/OSHA has updated the procedures.

Answer

None of the above

Question 6

Which of the following categories has fixed costs?

Accepted Answer

Overhead expenses

Answer

Labor expenses

Answer

Direct costs expenses

Answer

Travel expenseslabor expenses

Question 7

When putting together a bid for a house construction project, which of the following is least significant?

Accepted Answer

The Cost of Permits

Answer

The Overhead and Profit

Answer

The Cost of Materials

Answer

The Cost of Labor

Question 8

Covered under a contractor's commercial general liability policy are:

Accepted Answer

Damage or injury as a result of the contractor's work

Answer

The contractor's workmanship

Answer

Warranty work

Answer

Contractors workmanship and Warranty work

Question 9

When a contractor works directly with the owner of residential property and the contract fee is: a written agreement between the parties is necessary.

Accepted Answer

$2,000 or more

Answer

$1,000 or more

Answer

More than $2,000

Answer

Any amount

Question 10

Which bond promises that, for a given amount of time, a contractor's work will be free from flaws in materials and workmanship?

Accepted Answer

A Performance bond

Answer

A Satisfaction Bond

Answer

A Maintanence Bond

Answer

A Licensure Bond