General Contractor License General Contractor License Law 5

Question 1

A contractor is performing work on a project and discovers the job will exceed their license monetary limit. They should:

Accepted Answer

Stop work and refer the project to a contractor with an appropriate license limit

Answer

Exceeding a license's monetary limit is a licensing violation; the contractor must either obtain an appropriate license or defer to one who holds it.

Question 2

Which statement about contractor licensing and insurance is most accurate?

Accepted Answer

Licensing and insurance are separate requirements; each must be independently maintained

Answer

A contractor's license and liability insurance are independent legal requirements; holding a license does not prove adequate insurance coverage.

Question 3

Under most state contractor licensing laws, advertising as a contractor without a license is:

Accepted Answer

A violation subject to fines even if no work is performed

Answer

Most states prohibit advertising contracting services without a license, and violations can result in fines regardless of whether any work is actually contracted or performed.

Question 4

A public works project worth $500,000 requires bidders to be licensed. An unlicensed contractor submits the lowest bid. The awarding agency should:

Accepted Answer

Reject the bid as non-responsive due to lack of licensure

Answer

A bid from an unlicensed contractor on a project requiring licensure is non-responsive and must be rejected, regardless of bid price.

Question 5

What continuing education requirement do many states impose on licensed contractors?

Accepted Answer

Completion of approved courses as a condition of license renewal

Answer

Many state licensing boards require contractors to complete a specified number of approved continuing education hours as a condition of renewing their license.

General Contractor License Practice Test

General Contractor License Practice Test

General Contractor License General Contractor License Law 5