General Contractor License General Contractor License Law 2

Question 1

Under most state licensing laws, which action constitutes 'unlicensed contracting'?

Accepted Answer

Bidding on a project without a license

Answer

Submitting a bid for work that requires a contractor's license, without holding that license, constitutes unlicensed contracting in most states.

Question 2

A general contractor's license bond primarily protects:

Accepted Answer

The public and project owners from contractor defaults

Answer

License bonds are required to protect the public and project owners if the contractor fails to fulfill contractual obligations or violates licensing laws.

Question 3

What is the typical consequence for a licensed contractor who allows another person to 'use' their license number for a fee?

Accepted Answer

License revocation and potential criminal charges

Answer

License 'lending' or 'brokering' is a serious violation that typically results in revocation of the licensee's license and can carry criminal penalties.

Question 4

Which of the following is generally NOT grounds for disciplinary action against a general contractor's license?

Accepted Answer

Winning a competitive bid

Answer

Winning a competitive bid through legitimate means is not a licensing violation; it is the expected outcome of the bidding process.

Question 5

When must a general contractor typically display or provide their license number?

Accepted Answer

On all contracts, bids, and advertising materials

Answer

Most state licensing laws require contractors to include their license number on all contracts, bids, advertisements, and business documents.

General Contractor License Practice Test

General Contractor License Practice Test

General Contractor License General Contractor License Law 2