NCCER Regulatory Compliance & Legal Framework 3 — Questions and Answers
Question 1: Which type of insurance protects a handyman if a client is injured due to the handyman's work?
- Workers' compensation
- General liability insurance (Correct answer)
- Commercial auto insurance
- Errors and omissions insurance
Correct answer: General liability insurance
General liability insurance covers third-party bodily injury and property damage claims arising from the handyman's work operations.
Question 2: What is the purpose of a mechanic's lien in construction law?
- To license mechanics to work on HVAC equipment
- To give unpaid contractors or suppliers a security interest in the property (Correct answer)
- To authorize lien-based inspections by the city
- To protect homeowners from contractor fraud
Correct answer: To give unpaid contractors or suppliers a security interest in the property
A mechanic's lien (or materialman's lien) gives unpaid contractors, subcontractors, or suppliers a legal claim against the property where their work or materials were used.
Question 3: GFCI protection is required by the NEC in all of the following locations EXCEPT:
- Bathrooms
- Kitchens near the sink
- Interior bedroom outlets (Correct answer)
- Outdoor receptacles
Correct answer: Interior bedroom outlets
The NEC requires GFCI protection in wet and hazardous locations like bathrooms, kitchens, and outdoors, but standard interior bedroom outlets do not require GFCI protection.
Question 4: When is an asbestos survey legally required before renovation work in a commercial building?
- Only if the building was built before 1960
- Before any demolition or renovation that may disturb asbestos-containing materials in pre-1981 buildings (Correct answer)
- Only when the building owner requests it
- When more than 1,000 square feet of wall area is being disturbed
Correct answer: Before any demolition or renovation that may disturb asbestos-containing materials in pre-1981 buildings
NESHAP (National Emission Standards for Hazardous Air Pollutants) regulations require an asbestos survey before renovation or demolition of facilities that may contain asbestos-containing materials.
Question 5: Which setback regulation determines how close a structure can be built to a property line?
- Building code
- Zoning ordinance (Correct answer)
- Fire code
- Health code
Correct answer: Zoning ordinance
Zoning ordinances set setback requirements that dictate the minimum distance between structures and property lines.
Question 6: An independent contractor relationship differs from an employee relationship primarily in that:
- Independent contractors must be licensed in every state
- The hiring party has less control over how the work is performed (Correct answer)
- Independent contractors are always paid hourly
- Employees cannot work on residential projects
Correct answer: The hiring party has less control over how the work is performed
The IRS and courts use the degree of behavioral and financial control to distinguish contractors from employees; independent contractors control their own work methods.
Question 7: What is a 'change order' in a construction contract?
- A court order requiring changes to building plans
- A written agreement modifying the original contract scope, cost, or schedule (Correct answer)
- A permit amendment issued by the building department
- An OSHA citation requiring corrective action
Correct answer: A written agreement modifying the original contract scope, cost, or schedule
A change order is a written document signed by both parties that formally modifies the original contract to reflect changes in scope, price, or timeline.
NCCER Regulatory Compliance & Legal Framework 3
Which type of insurance protects a handyman if a client is injured due to the handyman's work?