Renovation Contractors Licensing and Legal Requirements

Question 1

Which federal agency regulates lead-safe work practices for renovation contractors working in pre-1978 homes?

Accepted Answer

EPA

Answer

OSHA

Answer

HUD

Answer

CPSC

Question 2

What is the primary purpose of obtaining a contractor's license in the US?

Accepted Answer

To prove competency and protect consumers

Answer

To set pricing standards

Answer

To join a union

Answer

To qualify for federal contracts only

Question 3

Which type of insurance is legally required for most renovation contractors in the US?

Accepted Answer

Workers' compensation insurance

Answer

Errors and omissions insurance

Answer

Surety bond only

Answer

Life insurance

Question 4

What does a contractor's surety bond protect?

Accepted Answer

The client against incomplete or substandard work

Answer

The contractor's equipment

Answer

The subcontractors' wages

Answer

The contractor's business license

Question 5

What is 'reciprocity' in the context of contractor licensing?

Accepted Answer

When one state accepts another state's license

Answer

A discount for bulk materials

Answer

A mutual insurance agreement

Answer

Sharing subcontractors between companies

Question 6

Which of the following is typically required to renew a contractor's license in the US?

Accepted Answer

Submitting continuing education credits

Answer

Passing the original exam again

Answer

Paying a one-time lifetime fee

Answer

Filing a new surety bond application annually