California Landscaping Contractor (C-27) License Practice Exam

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• What is the net profit given the following: sales of 300,000; labor 95,000; miscellaneous expenses 35,000; materials 55,000; depreciation 25,000; and a 35,000 loan to the owner?
• What does the current ratio compare?
• If a subcontractor serves the owner with a stop payment notice, the most likely reason would be to:
• If a contractor unearths human remains or burial artifacts at a construction site during excavation, what must be done?
• Which statement about budgets is most accurate?
• If an employee works 40 hrs / week for four weeks and insurance costs $ 147.20 / month, how much is the insurance cost per hour for the employee?
• For a home improvement contract exceeding $500, the down payment may be limited to which amount?
• Regarding personnel records, an employee's right to inspect applies within no later than how many calendar days after requesting the records?
• How should the prime contractor determine whether a subcontractor has workers' compensation insurance?
• By law, the maximum hours in a week a minor may work is:
• For an end-of-year workers' compensation audit, which document must the employer provide to the insurer?
• The memorized Social Security number practice described is considered acceptable. True or False?
• By what date must an employer furnish a completed IRS Form W-2 to an employee?
• For a subcontractor seeking payment, where should the mechanics lien be filed?
• Which incident would NOT have to be reported to DOSH immediately or within 24 hours?
• A subcontractor who does not serve a preliminary notice loses which rights?
• Which must be included in a home improvement contract?
• On a private project, which tools are most effective together to secure payment?
• Which action should a contractor take before bidding on a project in a town with different regulations?
• Disabled access laws went into effect for public buildings in 1968 and for private buildings in 1970. Which option correctly reflects this date pair?
• Who is responsible for paying SDI?
• What is the relationship between a prime contractor and a subcontractor?
• What code governs building standards for a contractor in a municipality?
• Of the following four items to consider when bidding, which is the most important?
• An unconditional lien release from a subcontractor implies what about the owner's property?
• Which statement best describes the nature of fixed expenses in a small business?
• A contractor buys a construction firm from a retiring owner. There is a three-year successor clause in the existing collective bargaining agreement. Is the new owner bound by the agreement?
• Which type of job - related injury requires the employer to make a written report ?
• Where can workers obtain the name of the employer's current workers' compensation insurance carrier?
• Employees may view their own personnel files under which condition?
• Which step would best help prevent disagreements due to vague contract terms?
• Which action is recommended to avoid disputes by ensuring clear scope of work and contract details?
• On which sides of their commercial vehicles must licensed contractors display their name, business address, and license number?
• An employee works Sunday at the rate of 1-1/2 times the regular rate. What is this rate called?
• The notice regarding workers' compensation must be posted where?
• For a residential project, which professional is typically responsible for submitting official plans and specifications?
• When should the contractor renew the contractor's license bond?
• How could a cash flow problem best be prevented on a home improvement project?
• Workers' compensation insurance covers injuries or illnesses
• Which of the following is classified as a job-related direct cost?
• A schedule of payments in a home improvement contract must include which details?
• Who may require the prime contractor to obtain a performance and payment bond?
• Which document should be used to formalize the scope and price when extra work is requested after project completion?
• What is the maximum travel distance allowed from any point of a work area to a fire extinguisher?
• Who is ultimately responsible for ensuring safety equipment is actually used on the jobsite?
• Federal Form 1099-MISC is used to report payments of $600 or more to persons not treated as employees for services performed for the business. Which of the following is the correct threshold?
• If a contractor hires a subcontractor to demolish a concrete wall, who is responsible for supplying safety goggles?
• You are bidding on a job with plans drawn by the owner. You notice a code violation and the owner declines to remedy and tells you not to worry. What should you do?
• Under the Immigration Reform and Control Act, employees hired on or after November 6, 1986 must complete Form ______ to verify their employment eligibility status.
• Which of the following is considered the most accurate way to bid a job?
• A notice canceling a home solicitation contract becomes effective
• Which statement is used to determine the acid test?
• Form I-9 must be completed by all employees within how many business days of hire?
• How do you know if you are bidding correctly on a landscaping job?
• A contractor who discovers an error after submitting a bid on a public works project should do which of the following?
• Who controls water runoff in a coastal area?
• On public works, what is the minimum wage standard for journey-level workers?
• A contractor must keep change orders on file for at least:
• Which statement about safety information for new hires is correct?
• Who determines the prevailing wage rate on public works projects?
• DOSH investigators who are denied access to inspect places for unsafe conditions:
• If a six-month project could extend longer, how should it be described to job applicants?
• Social Security tax for a self-employed contractor is based on the rate set for which period?
• Who must approve a substitution of material on a job by a subcontractor?
• Who has the authority to inspect construction business records after project completion?
• What is a possible reason an owner would require an Unconditional Lien Release from a subcontractor?
• Which payroll tax does not have a limit?
• Where would a contractor obtain a surety bond?
• What is the best method of adjusting inventory in the general ledger?
• What is the cancellation period for home improvement contracts for seniors aged 65 or older?
• Under which circumstance is Form 1099-MISC not required for corporations?
• How do you pay journey-level workers on a public works job?
• Patent defects are defined as?
• Which of the following is a possible penalty for providing any part of the qualifying exams to another person?
• Before digging, which organization should you notify to locate underground utilities?
• Which professional must renew every two years according to the material?
• The plans and specifications for a home improvement project usually describe which element?
• What does an employee handbook typically include?
• If a contractor changes the design on a project without permission and the owner sues and wins, what is the owner entitled to recover?
• In what scenario is financing a job most appropriate?
• Who is best prepared to submit a financial statement to a bank to obtain a loan?
• How often are you required to pay sales tax?
• Which statement about home improvement laws is not correct?
• Which statement best describes the readability distance requirement for asbestos warning signs?
• Which action best protects a contractor’s lien rights when a homeowner delays payment?
• Who must pay for a pre-employment physical?
• After the building plans are approved, what should the contractor do next in the project workflow?
• Which financial ratio is the strictest measure of liquidity?
• Which financial statement shows revenues and expenses over a period of time?
• When there are wide fluctuations in working capital, which resource is best for paying bills on time?
• Who is responsible for keeping track of change orders on a construction project?
• Which item is typically considered a fixed cost for a small contractor?
• When there is a third party lender, a contractor may enforce the home improvement contract after three business days from which moment?
• Which statement about workers' compensation coverage is true?
• Which statement best describes safety at a job site?
• Which document is recorded to assert a lien against the property by a subcontractor?
• What is the policy regarding retaliation toward an employee who reports a safety violation to DOSH?
• When engaging an electrician you have not worked with before, what is a prudent supervisory action?
• What does a legend on a site plan represent?
• Which contract type requires the mechanics lien warning to be included?
• If a contract provides for a retention of 5% of a $135,000 total job price, how much may the owner withhold?
• Which agency enforces contractor licensing and warranties in California?
• Under which contract condition would FIR registration not be required for a public works contract?
• Which insurance policy would protect against a claim if a customer comes to the contractor's office and falls down and suffers an injury?
• Which type of insurance, besides workers' compensation, is required for a public works project?
• How many days does a contractor have to notify the Registrar after being issued a workers' compensation insurance policy?
• How long are contractors required to keep records after completing a construction project?
• Federal regulations on overtime apply to:
• If a general contractor discovers a subcontractor's bid is substantially lower than the others, is it ethical to inform the subcontractor of the apparent error?
• Where would a contractor go to verify that building permits were issued for all construction work done on a house?
• Where must the supplier's Safety Data Sheets (SDS) be kept?
• Change orders are required when which change occurs?
• Which practice is recommended if bids are too high to win work?
• Ms. Gomez applies for a job. Which of the following is the only lawful reason an employer may deny her employment?
• Which form is used to report payments to non-employees for services performed for a business?
• Except in an emergency, you must notify the regional Underground Service Alert Center within how many days before beginning to excavate?
• If you find that work done by a previous contractor is in violation of the local building code, what should you do?
• Of the following, which is the best source of jobs for small and medium-sized contractors?
• Which financial statement summarizes revenues, cost of sales, and operating expenses over a period?
• A contractor and a homeowner sign a home solicitation contract. If the owner lawfully cancels the contract, how long does the contractor have to pick up unused materials that were delivered to the owner's property?
• An employer who receives a citation for a serious Cal/OSHA violation can be assessed a penalty of up to how much per violation?
• If a contractor has temporary cash-flow problems, what is a good way to get through the crisis?
• Truth in Lending Act rescission rights apply when which scenario occurs?
• What is the purpose of sending a Notice of Mechanics Lien form with an unfiled copy of the lien claim?
• The most important thing to include in advertising for construction work is which of the following?
• What is the most reasonable method of preventing disputes about change orders?
• Why are written health and safety records kept for several years?
• Which agency should sole owners contact to obtain a fictitious business name (DBA) if they do not want to use their legal name for the construction business?
• To be binding, change orders to a home improvement contract must contain which of the following?
• Is it legal for a contractor to hire professional strikebreakers to replace striking employees?
• Which item is a direct cost when bidding on a job?
• What is the best way to determine if your landscaping company is profitable?
• When does financing a job make the most sense?
• Current liabilities on a balance sheet are debts that become due within:
• A contractor is looking for an insurance policy to cover a high degree of exposure to risk. Which policy would be best for this purpose?
• Insured employers must report every work-related illness or injury to their workers' compensation carrier within how many days of the incident?
• What should be done with the contractor's copy of an employee's Form W-2?
• When may a client cancel a service and repair contract?
• On a private project, what is the typical remedy when nonpayment occurs and there is no dispute?
• If a contractor on a public works project is found to pay less than the prevailing wage, what is the remedy?
• When preparing a bid, you should:
• At what rate must employees be paid if working a 40-hour week that includes work on a Sunday?
• Which court is typically the proper venue for cases involving federal questions or constitutional issues?
• If a sales presentation is made in Spanish, the home solicitation contract
• The mechanic's lien warning protects which party from liens?
• For how long should change orders be retained on file?
• How often are FUTA tax deposits made by most employers?
• Which party is bound by the exact words of the contract when a complete agreement clause exists?
• Which may not be deducted from an employee's paycheck?
• Under Cal OSHA Form 300, when is an employer not required to keep records of work-related injuries or illnesses?
• Where should the statement 'THE CONTRACTOR IS NOT RESPONSIBLE FOR DELAYS CAUSED BY WEATHER, EARTHQUAKES, FLOODS, OR OTHER ACTS OF GOD' be placed in a written contract?
• If a contractor changes a business name or address or has any changes in the personnel listed on the license, the Registrar must be notified within :
• A consumer may cancel a home solicitation contract at any time prior to midnight of which period after the date of the transaction?
• If a consumer signs a home solicitation contract and wishes to cancel, the deadline ends at midnight of the third business day after the transaction. True or False?
• Contractors do not have to be licensed if:
• Can a contractor require employees to take lie detector tests?
• Which policy type provides coverage for third-party bodily injury claims arising from contractor operations?
• Which of the following is least important in preparing a bid for a home construction project?
• The clause stating the contractor is not responsible for delays caused by weather, earthquakes, floods, or other acts of God would limit liability for delays caused by which of the following?
• Which range best represents a typical prompt-payment discount offered by suppliers?
• What happens to a corporation and its contractor's license if an officer or stockholder leaves or dies?
• To which agency does the employer send state unemployment insurance ( UI ) taxes?
• A waiver from building standards to reduce costs is allowed under which condition?
• Business records must be kept for inspection by the Registrar of Contractors for a period of how long after completion of a construction project?
• Which of the following is considered a direct cost?
• The licensing requirement applies to projects with total cost in labor and materials of at least?
• Within how many days must an 'Agreement to Arbitrate' be returned by the participants after being mailed by the Registrar?
• To change a sole ownership license to a corporate license, the contractor must:
• Is Form 1099-MISC required for a corporation that provided $600 in services as an independent contractor during the calendar year?
• A contractor's California personal income tax return should be sent to which office?
• Who is responsible for establishing that a subcontractor is duly licensed?
• Which two types of loans is a contractor most likely to engage in?
• How long should a contractor keep employee payroll records?
• To whom do you report and pay sales tax?
• On a time-and-materials project, which pricing approach best ensures profitability?
• Which statement best describes the effect of the clause 'The agent is liable for final payment' in a contract?
• Fixed costs apply to which category?
• As a subcontractor on a public work of improvement, filing a stop payment notice has what effect?
• In a bid, which component is considered non-productive?
• Including the license number in advertising helps consumers do what?
• Acts of God delays are typically caused by which events?
• When balancing accounts receivable, which would have no effect?
• When you take an employee with you to City Hall to get a building permit, what should you bring besides your contractor's license pocket card and plan?
• If a client is unhappy with your work, what should you do?
• What is the maximum number of calendar days allowed between the notice to Underground Service Alert Center and the start of excavation?
• A building constructed in 1979 undergoes renovation. Is there a requirement to inquire about asbestos presence?
• If the owner requests 5 additional fixtures beyond the original 110, what is the additional charge using the original per-fixture rate?
• Which agency oversees wage determinations for public works projects?
• Which of the following improvements does not require a building permit?
• How many times may the qualifying individual take the State license exam before the application is voided?
• If a contractor's supplier goes on strike, what should you do?
• The contractor's disciplinary notice must be in all capital letters and in which typeface option?
• If employees file a safety complaint and are terminated for it, what happens on appeal?
• If there is no collective bargaining agreement, which of the following is a correct statement regarding the payment of wages by an employer?
• Where is truck insurance listed on an income statement?
• When should safety clothing be worn on a job site?
• If safety devices are missing on a tool, who bears responsibility for safety?
• Which statement about advertising is correct?
• An employee fired due to wage garnishment must notify the employer within how many days if they plan to dispute lost wages?
• What precautions must a contractor take with hazardous substances?
• On a public works project, the public agency’s view of a subcontractor places them in which relationship to the prime contractor?
• Which type of liability insurance protects against claims that occur during the policy period?
• Form 941 is used to report payroll taxes on a quarterly basis. Which option correctly describes its reporting frequency?
• Which statement is true about asbestos inquiries before starting a project?
• Which of the following best describes a contract bond?
• What information must a time card include?
• If hazardous materials are discovered during construction and properly abated, who should notify the contractor in writing after abatement?
• If the plans and specifications for a job are vague or lack details, contractors should:
• A balance sheet represents a company's financial position on a specified date.
• Which statement best describes the role of a line of credit from a bank for a contractor?
• By law, a 'hard laborer' may not be younger than how many years old?
• After you have read the plans and specifications, what is the next important step in writing a bid?
• Who must sign and verify a mechanics lien?
• Direct costs are $7,200; overhead is 12% and profit is 10%. What is the selling price if overhead and profit are calculated as percentages of the selling price?
• Keeping accurate accounting records helps a business achieve which outcome?
• Which entity provides coverage for work-related illnesses and injuries as required by law?
• Is it legal for a contractor to pay employees in cash?
• Is it legal to ask about arrests that did not lead to convictions during a job interview?
• If you notice that the plans do not specify a fireproof door where one is required, you should report it to whom?
• In the scenario where prospective employees memorize their Social Security numbers but lack a card, how is memorized SSN described?
• A home improvement salesperson’s (HIS) registration must be renewed every:
• Which statement about the owner-builder declaration on a permit is correct if the owner did not contract for the improvement?
• What is the purpose of the Cal/OSHA Consultation Service?
• Which statement about fixed expenses is most correct?
• When it comes to liens, who is responsible for paying for the work of improvement?
• Open account credit is extended based on what?
• Which step in the mechanics lien process involves serving a preliminary 20-day notice?
• If a demolition project requires asbestos testing, which contractor should you engage?
• What is the minimum amount of sick time employers are required to allow employees to use per year?
• As part of the safety training process, contractors' supervisors are required to conduct toolbox or tailgate safety meetings. How often must these meetings be held?
• Which best describes accounts receivable?
• On public works, the total retention withheld may not exceed what percent of the contract price?
• What is the best way to establish if a contractor's license is active and in good standing?
• If you find that you are not getting work because your bids are too high, you should try?
• What is required before continuing work after a serious code violation is found in plans?
• What is the statute of limitations for a consumer's complaint on latent construction defects?
• In the given net profit calculation, which item is not included as an expense?
• Which of the following requires an EIN?
• The Contractors State License Board has authority to enforce which of the following?
• What should you have with you during a walk-through near the end of the job?
• During a declared state of emergency, what maximum price increase is allowed without being price gouging?
• Mechanics lien must be signed and verified by the claimant. Which option correctly identifies who must sign and verify a mechanics lien?
• When may a contractor perform a home improvement contract requiring a loan as a precondition?
• If an employee earns $600 per week, what is the maximum weekly withholding for child support?
• A contractor is offering a job that will last at least six months but could last longer. What should the contractor tell people when interviewing for the job?
• Which document is used to report wages and taxes withheld to the IRS?
• What is the most common reason that a license is suspended?
• If the contractor maintains the same price per fixture, what is the total cost to install 120 recessed fixtures?
• The minimum fine for unlawful asbestos removal is:
• What is the maximum penalty for contracting with an inactive, suspended or expired license?
• Warning signs at the location of asbestos work must be readable up to how many feet away?
• Upon completion of a home improvement contract and payment, which type of lien release is required?
• Which federal forms are provided to a newly hired employee?
• On a job application, John states he has experience soldering pipe. What is the best way to determine his soldering ability?
• Which type of bond guarantees job completion?
• After a budget is finalized, what should the contractor strive to do?
• When a previous contractor's work violates a local building code, the recommended response is to provide the owner with what?
• An ' aging ' report is :
• When should an employer provide information on safety procedures?
• A person who serves as the qualifier for licensure may qualify for how many firms in a single year?
• Which of the following statements is true?
• What is the method to compute the per-fixture price from a total contract amount and fixture count?
• Which is the best indicator of a business's ability to pay its current bills?
• Which of the following are the best examples of fixed costs?
• A contractor sues an owner for refusing to make final payment after the job was completed. The owner is demanding changes. Of the following, which is the best way for the contractor to avoid a lawsuit?
• The prime contractor must pay the subcontractor within how many days after receiving a progress payment?
• A subcontractor must file a mechanics lien with which office?
• Who should be notified when an employee disputes lost wages after being fired for wage garnishment?
• If a contractor violates a safety code and an employee is injured, who will be held responsible?
• The concept of accounts receivable refers to money due from customers who purchased goods or services on credit. Which of the following best describes this concept?
• A prime contractor entered into a construction contract with a subcontractor. An employee of the subcontractor was injured, but the subcontractor had not secured workers' compensation coverage. Which of the following statements best describes the situation, except in cases of fraud?
• A customer signed a contract on Friday, December 21st. On which day is the last day the customer may cancel?
• If a contract contains a clause stating the contractor is not responsible for delays caused by natural disasters or acts of God, which aspect of the schedule can be flexibly interpreted?
• When asbestos is found in a home improvement project, who is responsible for the abatement?
• For a home improvement contract valued at $19,800, what is the maximum down payment a contractor may collect?
• In a home solicitation contract scenario with an English presentation to a non-English-speaking homeowner, how must the contract be?
• In the cash system of accounting, a transaction is recorded or posted:
• A sales presentation was given in English to a foreign language speaking homeowner. Which statement is correct about a home solicitation contract?
• Under IRCA, which form is used to verify employment eligibility for new hires?
• The California department responsible for sales tax administration is known as the:
• The most accurate method of estimating the cost of materials for a remodeling job is which method?
• A contractor is not required to register with FIR as a public works contractor if the contract is for repairs only and does not exceed what amount?
• Which are most effective when used together on a private works project?
• To prevent disputes if a homeowner complains after you finish fixing door hinges and dog scratches remain, what is best practice?
• When pressure-washing paint from a home built before 1978, the contractor should inform the homeowner about possible lead paint issues at which point?
• What action is required if an employee injury on the job requires only first aid by an insured contractor?
• Which muscles should be used more when lifting heavy materials?
• Where should the contractor keep the Form W-2 copy for each employee?
• If no Notice of Completion or Cessation is given on a job, how many days does a contractor have to file a mechanics lien after completion of work?
• Which statement about waivers is correct?
• Your accountant advises you to set up a cost management system. What does this system do?
• Which of the following is considered a fixed expense in a landscaping business?
• The purpose of a specification sheet attached to a set of plans is to
• What is the meaning of the contract statement 'THE AGENT IS LIABLE FOR FINAL PAYMENT'?
• A contract includes a three-day cancellation form. If the buyer cancels by sending a letter stating he will not proceed, is the cancellation effective?
• For a $135,000 project with a 5% retention, what is the withheld amount?
• How often must a home improvement salesperson's registration be renewed?
• To verify all required permits exist for a house, a contractor should contact which entity?
• Under a complete agreement clause, modifications are enforceable only if they are what?
• Which statement best reflects the action required when defective machinery is detected during work on a project?
• Which duration is correct for retaining records of hazardous materials exposure?
• The federal Employer Identification Number (EIN) is issued by the:
• Which cost category is easiest for a contractor to control when planning subcontracted work?
• An individual who meets certain conditions may serve as the qualifier for up to firms in any one-year period. How many firms is that?
• Records of accidents and injuries are kept for what purpose?
• If a job involves asbestos, what is the recommended immediate action?
• A customer wants to accept a bid but does not have enough money. The wisest contract decision would be to:
• Which of the following provisions may not be included in a home improvement contract?
• If a contractor moves to a new address and fails to file a change-of-address form, what is a likely consequence regarding renewal notices?
• When can a material supplier perfect a mechanics lien?
• Which agency administers California personal income tax for individuals?
• Direct costs are 37,000, overhead is 12%, and profit is 5%. What is the selling price?
• Which document attached to plans conveys details not shown in the drawings?
• If retention is withheld until substantial completion of the entire job, the subcontractors who worked on the early stages of the project can be put at a financial disadvantage. What is the best way to remedy this situation?
• When applying for a building permit, if the owner contracted for the improvement, which statement is correct about checking the owner-builder box?
• In filing a mechanics lien, one of the early steps is to determine the owner's identity and ownership percentage. Which option correctly represents this step?
• Which type of injuries or illnesses does not have to be reported to the Division of Labor Statistics and Research?
• How long does a client have to cancel a contract for repairs that resulted from an event for which a State of Emergency was declared?
• How many times may you take the contractor's license exam before your original application is voided?
• The Registrar may waive the licensing examination requirement if the applicant is the qualifier for a license in the same trade classification. Which option best describes this condition?
• An applicant for an original contractor's license who has passed the qualifying exams is notified on October 1 that she must file the initial license fee and license bond. The fee and bond must be filed no later than:
• In a home improvement bid, extras refer to items that are:
• An owner should request waivers of lien rights for work on residential property after paying the full contract amount:
• If a business has eight employees, is it required to keep Cal OSHA Form 300 records?
• The most economical way to obtain insurance is to
• Which age-related fact is stated regarding driving as part of employment duties?
• The Wagner Act of 1935 addresses what subject?
• A Small Claims Court may dismiss a lawsuit filed by a contractor under which condition?
• Which professional is most likely to prepare a financial statement to support a bank loan for a construction project?
• If a homeowner stops paying and work has halted for 60 days, what should the contractor do next?
• The Mechanics Lien Warning is for the protection of:
• For a remodel, how long does a client have to submit a claim for defects in fit and finish items?
• In construction funding arrangements, which entity is typically used to hold construction funds in trust?
• A homeowner would require a payment and performance bond to assure what?
• All of the following are causes for disciplinary action except
• Where should the mechanics lien be filed for a home improvement project?
• A electrical contractor charges $5,000 to install 100 recessed light fixtures. If 10 more fixtures are added, bringing the total to 110, what should be charged to install 110 fixtures?
• What must be included in every home improvement contract?
• If a contractor is reported to DOSH by an employee for a safety violation and the contractor asks for the reporter's name, what will DOSH likely do regarding the reporter's name?
• Which overtime regulation option best describes federal coverage?
• What is the best way to ensure your bond and insurance are up to date?
• What is the most common problem for new contractors seeking a performance or bid bond?
• A contract bond:
• Asbestos presence inquiry is required for buildings constructed before which year?
• Which document is essential for legally handling hazardous materials in construction sites?
• Under what condition is eye protection required?
• For a home improvement project, the Preliminary Notice serves to preserve which right?
• When are employees allowed to view their own personnel files?
• When a joint control addendum is used, which item does not have to be included in a home improvement contract?
• A budget that allows for month-to-month variations helps prevent which issue?
• Which of the following information may an employer reveal about an employee?
• Which is the best way to determine if more materials must be ordered?
• Which of the following must be registered as a home improvement salesperson?
• In a bid, which item is commonly the largest single cost category that can be estimated with reasonable precision?
• What is the proper remedy for releasing retentions tied to the subcontractor's work rather than waiting for substantial completion of the entire job?
• Which insurance policy would typically cover a contractor's liability for damage to a client's property caused during work?
• When preparing a bid, which approach helps manage unforeseen costs?
• What is the best way to monitor and analyze labor costs?
• Which liquidity measure excludes inventory from current assets?
• When bidding on work, which item would you not include in the price of your bid?
• According to the waiver provision, who must sign the waiver for it to be valid?
• In a bid where overhead and profit are applied as percentages of the selling price, what combined percentage do overhead and profit represent of the selling price?
• On a public works project, what does a Waiver and Release form signed by a subcontractor mean?
• In the mechanics lien process, Step 3 is:
• What will happen if a contractor on a public works project pays less than the prevailing wage?
• Which metric is cited as the best indicator of liquidity to cover current obligations?
• In a home improvement project, what is the purpose of tying payments to definite stages of work?
• A contractor is not required to register with FIR as a public works contractor if the contract is for repairs only and does not exceed which amount?
• When would an employee be required to complete a new IRS Form W-4?
• Which statement best describes lie detector test requirements in employment?
• When preparing a cost estimate, which item could not be determined without visiting the site?
• Which event requires the issuance of a new Form W-4 by an employee?
• Which practice is recommended for accurate labor cost monitoring?
• A Waiver and Release signed by a subcontractor on a public works project waives the right to lien which asset?
• Which statement best describes the relationship between an employer and a worker for classification purposes?
• To ensure the license bond remains in effect after expiration, which action is best?
• The maximum number of hours a minor may work on the day before a school day is:
• What action should a contractor take when plans and specs are vague?
• Which department is responsible for public works contractor registrations?
• Good accounting records are necessary for what primary purpose in a contracting business?
• Which statement best describes the CSLB arbitration program?
• A lien release that fully forgives lien rights upon full payment is called which?
• Disputes over an alleged violation qualify for CSLB arbitration if which condition is true?
• What is the maximum number of hours a minor may work in a single day?
• Form 1099-MISC is used to report payments to which type of workers for services performed?
• Who should review a home improvement contract with the owner before signing it?
• Which statement best describes the IIPP requirement?
• Why should a contractor visit the work site frequently?
• When is the best time to talk to a client about liens and stop payment notices?
• In first aid, when a deep gushing wound on the forearm occurs, what should be done first to control bleeding?
• A Cal/OSHA permit is required for trenches that are 5 feet or more in depth.
• If a building permit is required, when does the law permit a building inspector to enter and inspect a residence?
• From the original contract, what is the price per recessed fixture?
• Which action may be taken if access is denied during a safety inspection and there is a probable unsafe condition?
• Some counties have an additional sales tax added to the base rate. Which statement is correct regarding this additional tax?
• When a Notice of Completion has been filed, the original contractor has how many days to record a lien?
• Who is responsible for checking the site before the building inspector arrives?
• Which group is explicitly listed as eligible to file a mechanics lien in the provided context?
• Which financial ratio is commonly used to measure liquidity?
• If a contractor discovers a 6 inch discrepancy on the plans, which party should be contacted to resolve the issue?
• At what sound level should ear protection be worn?
• When must a contractor notify new employees of their right to receive workers' compensation benefits if injured on the job?
• Which financial document summarizes revenues and expenses to show net income for a period?
• An employer hires one part-time and two full-time employees. The full-time employees are covered by workers' compensation but the part-time employee is not. Is this lawful?
• A subcontractor signs an Unconditional Waiver and Release upon final payment. This means that the subcontractor has waived which rights?
• When a contract includes a 'complete agreement' clause, what is the effect?
• What factor most clearly distinguishes an employee from an independent contractor?
• If an employee is 20 minutes late for work, what may the employer do under the rules described?
• If required safety devices are missing from tools, what should an employee do?
• An active contractor's license that was issued on January 18, 2016, will expire on:
• The plans and specifications for a home improvement project typically cover which aspect?
• A building permit is required for projects when the local building department requires it.
• Which organization administers the voluntary arbitration program for contractor disputes?
• In a case involving federal law or constitutional issues with interstate implications, which court is the typical first filing venue?
• Who bears the primary responsibility for safety on a construction site?
• When purchasing insurance, what is the best way to choose among different companies?
• When two major tasks can be performed in parallel, which factor most influences the total project duration?
• Is it lawful to exclude part-time employees from workers' compensation coverage if full-time employees are covered?
• You are the qualifier for an active contractor's license. How do you inactivate the license?
• Who is most commonly in position to require a bond to protect against non-performance and liens on a home improvement job?
• If a building code violation is found after the work is completed, who can share liability?
• Who may file a mechanics lien?
• A time card includes the day and hours the person worked, as well as :
• When an employee who is not hired for a specified period quits without notice, the employee must be paid within how many hours?
• IRS Form 1099 should be issued to which type of worker?
• If a home solicitation contract is signed on Friday afternoon, what is the deadline for cancellation?
• A homeowner asks a contractor to lower a bid after including several extra items. What is the best course of action for the contractor?
• How deep must asbestos be buried within 24 hours of delivery at a disposal site?
• What is the purpose of a Preliminary Notice for a home improvement project?
• Your employee sets a cabinet wrong; the cabinet falls from the wall and damages the client's countertop. What should you do?
• Two licensed contractors want to contract as the prime on a $300,000 project. Can they work together on the same project without obtaining a joint venture license?
• How is operating capital defined in financial terms?
• Which of the following is not a misdemeanor?
• The Mechanics Lien Warning informs the property owner that the property can be liened if which condition occurs?
• What is the purpose of retaining a portion of contract payments in construction?
• Which is a recommended approach for handling temporary cash-flow problems for a contractor?
• Which scenario would require reporting to DOSH?
• A contractor has had problems with employees stealing tools at job sites. When interviewing candidates, may the contractor ask about arrest records?
• A worker earning $20 per hour works 60 hours in week one and 30 hours in week two. Overtime pay is 1.5 times the regular rate for hours over 40 in a week. What are the gross wages for the two-week period?
• An employee works 60 hours in one week. If the hourly wage rate is $18, what are the gross wages?
• Which item would not appear on an income statement?
• Which advertising practice is required by law for contractors?
• Which of the following injuries must be reported to DOSH?
• Which statement correctly relates to the weekly work hour limit for minors?
• A job calls for the demolition of an old residence in order for a new residence to be built. Which of the following should be done?
• What is a prudent step to reduce change-order disputes?
• Time and material agreements for home improvement jobs must be written with a fixed price whenever it is anticipated that the total price could exceed :
• When may a contractor have an owner sign a waiver from building standards in order to cut costs?
• Which agency is commonly abbreviated as CSLB?
• Which document shows the design and scale for a residential project?
• Which statement is true about liens and notices?
• The Injury and Illness Prevention Program (IIPP) takes the form of:
• Which building code should a contractor follow?
• If a client continues to request change orders, which practice would help manage this process?
• You must report FICA and withheld income tax ( Form 941 ) every:
• Public works contractors must renew their registrations with the DIR by which date?
• If the sole owner of a construction business dies, what happens to the business and the contractor's license?
• Every employer of 11 or more full- or part-time employees must keep written health and safety records for how many years?
• If you identify a missing fire-rated door on a project plan, what is the appropriate corrective action?
• The minimum weekly workload for the qualifying RME implies what?
• In project budgeting, fixed costs are most closely associated with which expense category?
• A business with twelve employees must keep Cal OSHA Form 300 records. Which statement is true?
• A company with 25 total employees: 4 in the office, 6 supervising, and the rest in the field. Which type of insurance is required by law?
• Although usually the largest single item in a bid, which category can be fairly accurately determined?
• Which business structure must obtain an Employer Identification Number (EIN)?
• Under workers' compensation, can a worker bring a civil action against the employer for a job-related injury when the employer is insured?
• Without reducing risk, what is the best way to minimize insurance costs?
• For a solo contractor operating without employees, which insurance is not required?
• Which state agency issues an employer's ID number?
• What kind of discount do lumber yards and other suppliers offer to contractors who pay their bills promptly?
• Which ladder rating would be appropriate for a worker weighing about 270 pounds?
• When remodeling an older home, at what point should the contractor ask the homeowner about asbestos materials?
• When a prime contractor subcontracts electrical work, how should the prime determine the price added for that electrical work?
• The purpose of the W-2 form is to report annual wages and taxes withheld to the federal government.
• Which method is best for determining the number of hours required for different phases of a project and for keeping the job on schedule?
• Which portable ladder rating should be used for an employee weighing 270 pounds?
• If an arbitration clause is included and initialed by both parties, what is the effect?
• In Small Claims Court, which statement is true regarding attorney representation?
• If you are required to report employment taxes or issue tax statements, who must obtain the federal Employer Identification Number?
• A basic insurance package for a new contractor would usually not include which?
• Which statement best describes the font requirement in a printed home improvement contract?
• Which of the following is a possible penalty component for price gouging during a declared state of emergency?
• A licensed contractor wants to do construction projects with an unlicensed individual. Which is a legal alternative?
• To pass a performance evaluation, which item should be present in the employee's documentation?
• During a critical point in a project, the owner says a completed item was not correctly done. What should you do?
• Which item is usually the most difficult to estimate?
• Without a collective bargaining agreement, into which schedule may wages be paid?
• Which of the following may not be determined from a completed job application?
• Whom do you contact to obtain a permit for building in a coastal area?
• In the described contract scenario, how much is the retention?
• An employer accrues $2,400 in federal withholding, Social Security, and Medicare taxes during a quarter. Which statement about payment of the tax liability is correct?
• To avoid suspension due to bond expiration, the new bond’s effective date must match which date?
• Which term describes flaws that are easily observed upon inspection?
• Where must the additional county-level sales tax be paid?
• Under home solicitation rules, the cancellation deadline ends at midnight of the 3rd business day after the transaction. True or False?
• To prevent cash flow problems at the end of a construction project, the contractor should obtain:
• On a time-and-materials job, you should:
• Which scenario would not be a lawful ground to deny employment?
• In the mechanics lien procedure, Step 2 is:
• Which of the following items is a direct cost on a job site?
• The time frame for paying subcontractors after a progress payment is received applies to which of the following?
• Within how many days must an employer make personnel records available for inspection after a written request?
• The minimum age for a hard laborer is 16 years.
• If an employee violates a safety rule and causes injury to a coworker, who is legally responsible?
• Who bears responsibility to verify licensure of subcontractors before starting work?
• A contract for the construction of a single-family dwelling must be signed by :
• Which statement about an inactive contractor's license is correct?
• When applying for a permit to re-install wiring that has been removed from an old Victorian house, the minimum contractor's license needed is
• An employee was injured because the contractor had overlooked a hazardous situation. Which statement about responsibility is correct?
• Before submitting a bid for a home in an unfamiliar town, what is the most important step to take?
• Where must a health and safety citation or order be posted?
• What is the primary purpose of a time card in payroll processing?
• If an applicant believes their contractor's license bond denial was unfair, which state official should they contact?
• Which scenario is not a typical cause for disciplinary action?
• Which of the following must be included in a home improvement contract?
• Which agency administers contractor licenses in California?
• If unsafe or faulty equipment is found on a job site, what should be done?
• If you get a quote from a material supplier, the quote is:
• A joint control company is primarily responsible for which function in construction contracts?
• Which color is used to mark the boundary of a work area?
• If a job-related injury occurs and the employer has workers' compensation coverage, can the injured worker generally sue the employer in a civil action?
• What does a balance sheet primarily show?
• Which of the following is commonly included in a home improvement contract?
• State disability insurance deductions require an employer to have at least how many employees?
• Why should contractors keep good business records?
• When demolishing a three-story structure, which agency would you contact first?
• If an owner cancels a home solicitation contract on March 20, by what date must the contractor return the down payment?
• Which financial tool is described as the best resource for paying bills on time during wide fluctuations in working capital?
• If a bid error is discovered after bids have opened, within what timeframe must the contractor notify the public entity?
• What should you do if an employee is exposed to a toxic substance?
• Funds withheld to guarantee completion of a project and to correct defects are called what?
• Who is required to fill out IRS Form I-9?
• In a home improvement contract, arbitration may not be enforceable if the clause is not included and initialed by both parties. Arbitration may apply to which person?
• Which statement about the state safety code’s oversight is accurate?
• Who is primarily responsible for safety at the jobsite?
• In Small Claims Court, a contractor's claim may be dismissed if the contractor was not licensed during performance on a contract for $500 or more.
• When may contractors licensed in other states do work in California?
• How can a new employee learn about a company's safety record?
• What is a legal way for a licensed contractor to work on projects with an unlicensed individual?
• When bidding on a job similar to one completed six months ago and planning to reuse the same materials, what should you do to determine the material costs?
• Which party is responsible for signing a labor lien release after the completion of a major phase on a home improvement project?
• What is the maximum percentage of wages that may be withheld from an employee's paycheck for child support?
• Which of the following methods of accounting is not recommended for contractors?
• On a public works project, which document must be provided to the agency before execution of the contract?
• When should a contractor's licensing information be provided to a homeowner on a home improvement project?
• A stop payment notice on a public works project could be used to what action?
• Fixed costs in a contracting business typically include which of the following?
• Which of the following is not by itself an acceptable form of documentation for filling out IRS Form I-9?
• Acts of God typically include which of the following events?
• Which insurance would typically respond to property damage caused during work performed by a contractor on a client's site?
• A bookkeeper for a construction company sends out bills once a month. How should the company file its copy of each bill?
• If a subcontractor signs an Unconditional Waiver and Release, what is extinguished?
• On a public works contract, how does the public agency typically regard a subcontractor?
• Which statement about safety practices at a construction site is correct?
• If a subcontractor lacks workers' compensation coverage and an employee is injured on a job site, which party is primarily responsible for injuries?
• Your application to a surety company for a contractor's license bond is rejected. If you believe you were unfairly denied or discriminated against, you would file a complaint with which authority?
• Under proper circumstances, the CSLB will arbitrate home improvement contract disputes where the alleged damages are:
• For which projects would you need a building permit?
• What happens to the partnership license when a general partner leaves or dies?
• Which of the following is not eligible to receive benefits from a contractor's license bond?
• In a public works contract, if you fail to name a subcontractor for a portion of the work, what happens?
• You have been awarded a job. It requires two days for site preparation and one day for cleanup. The contract involves two separate tasks — one lasting seven days and the other ten days. If the two tasks can be done simultaneously, for how many days should you schedule the job?
• When seeking the most cost-effective way to secure insurance, what approach is recommended?
• Which service is designed to assist employers in voluntarily improving safety programs?
• How long must an employer keep records of FUTA and other federal payroll taxes?
• Which of the following costs is the easiest for the contractor to control?
• How often should the safety supervisor be at the job site?
• Which of the following is typically a variable cost for a landscaping job?
• A contractor submits the lowest bid; which bond type protects the owner if the contractor back out after bidding?
• Under what circumstances must you inform an employee of exposure to a toxic substance?
• Who is primarily responsible for paying for the work of improvement in a lien scenario?
• How many days does a prime contractor have to record a Claim of Lien after a Notice of Completion has been recorded?
• How must a client submit a claim for service or repair of a defect on fit and finish items after a remodel?
• When you receive an approved set of plans, what should you do first?
• In the mechanics lien procedure, Step 1 is:
• What action is an employer required to take to discourage sexual harassment in the workplace?
• An owner objects to the materials being used and complains to a worker. Upon learning of the complaint, what should the contractor do?
• You are bidding on a job with homeowner-drawn plans where some dimensions do not add up. What should you do?
• Which practice ensures accuracy when updating inventory records?
• For which of the following would you not obtain a short-term loan?
• If you include depreciation on Year One, but not in Year Two, how will this affect Year Two net income on financial statements?
• When owner-provided plans reveal a code violation and the owner refuses to remedy, what is the prudent course of action before bidding?
• When a contractor furnishes a performance and payment bond for a home improvement project, which item is not necessary to provide?
• A prudent approach when a client cannot finance the project is to:
• If a worker's wages are garnished and the labor contract provides less protection than the State's guidelines, what does the law require?
• How many days does a subcontractor have to file a lien after a Notice of Cessation is recorded?
• Which of the following are grounds for disciplinary action?
• What happens to a partnership license if a general partner leaves the business or dies?
• The text in a printed home improvement contract must be at least what font size?
• To be eligible for CSLB arbitration, which condition must be met?
• When engaging an unfamiliar electrician, what is a best-practice supervisory action?
• A joint control company in construction funding is primarily responsible for which role?
• Which department administers registrations for contractors working on public works projects in California?
• A job requires a building permit from the city. The contractor goes to the building department and signs the application for a permit. Is this allowed?
• How long must a contractor retain records for employees exposed to hazardous materials?
• Star Construction moved to a new office but never filed a change-of-address form with the Registrar. As a result, Star never received a license renewal application. If Star fails to renew its license within five years of the date of expiration, it will have to:
• From the following business structures, which typically requires an attorney's representation in court?
• Who is responsible for selecting supplies for a first - aid kit for a jobsite?
• In most construction contracts, the retention may be held for up to how many days?
• Change orders to a home improvement contract are required to be signed by which parties?
• After a Notice of Completion has been recorded, which party’s lien rights must be acted upon within 30 days?
• By what date must contractors working on public works projects renew their registrations with the DIR?
• Who would be held responsible if a contractor completes a project according to plans and later discovers that there is a building code violation?
• Following the completion of a home improvement project and upon payment, who is responsible for signing a labor lien release?
• To whom does an employer pay FUTA tax?
• Which act establishes the rights of workers to organize into unions and negotiate contracts?
• After a Notice of Completion, lien rights apply to which group?
• Which action should be taken immediately when a project involves asbestos?
• If a newly hired employee does not have an SSN, what should be done?
• If an individual with a B license forms a corporation with two specialty contractors (one with C-10 and the other with C-36), the new corporation may be licensed in how many license classifications?
• In a near-miss safety situation, what steps should the employer take?
• Under state law, what should an employer do if an employee is using defective machinery?
• In the context of public works contracts, what is the maximum allowable retention percentage?
• If current assets are 600,000 and current liabilities are 350,000, what is operating capital?
• Which license category corresponds to specialty electrical work in California?
• Which of the following statements about a registered home improvement salesperson (HIS) is incorrect?
• Which statement reflects a prohibition in home improvement contracts?
• Which item is typically required to be included in a home improvement contract to outline how payment is handled?
• If a client has a dispute with a contractor for $25,000 in damages, where is the dispute likely to be heard?
• A Notice of Cessation is only effective if labor has ceased for at least how many days prior to recording?
• A contract can be canceled when there is consent through fraud or duress by
• Which example is the most vague statement in a contract?
• In a public works project, if you do not name a subcontractor for a portion of the work, who will perform that portion?
• If a construction company buys a new car for general use by the sales staff, to which account would the depreciation of the car be charged?
• Which government level handles fictitious business name filings (DBA) for construction businesses?
• The qualifying RME for a construction firm must work at least:
• Which procedure BEST ensures error-free bids?
• What percentage of the normal wage must you pay a minor ?
• Before beginning work on a project, the contractor must inquire of the owner whether asbestos is present in any building or structure built before:
• When a prime contractor outsources electrical work, what provides the price basis for that work?
• If asbestos in construction materials is found to contain more than 0.1%, what action is required?
• If a workers' compensation policy lapses and an employee is injured after mailing the check but before reinstatement, which statement is true?
• If an officer leaves and is not the qualifying individual, what happens to the corporation's contractor's license?
• On a private works project, if the owner fails to pay by the due date and there is no dispute, which statement is correct?
• Employees must provide Form W-4 to the contractor:
• What should construction employees wear when working at night?
• How often should time cards be filled out?
• When there is a third - party lender , a home improvement contract is unenforceable against the buyer per the Contractors License Law and federal Truth in Lending Act , if:
• In bidding a construction project, which factor is identified as the biggest risk factor?
• Workers' compensation coverage is required for employers with how many employees?
• Which category on an income statement would include the truck insurance payment?
• A supplier extends what type of credit if there is no security other than the contractor's reputation for paying debts when due?
• A swimming pool contract must include which of the following?
• Which type of bond ensures that the contractor will pay all labor and material bills and fulfill the terms of the contract?
• Where must a contractor include the 'Mechanics Lien Warning'?
• What item is typically reviewed at a walk-through near project completion?
• If your subcontractor orders materials that do not arrive when due, which would not be considered a valid excuse?
• Which statement about the State safety code is correct?
• If a contractor's license bond expires on May 15, by what date must it be renewed to be compliant?
• Which description best defines a mechanics lien?
• A licensed general contractor enters into a contract with an unlicensed subcontractor. Who is in violation of the law if the work performed requires a contractor's license?
• What is the maximum penalty for a contractor convicted of price gouging during a declared state of emergency?
• What is the most likely reason to lose a bid?
• What determines how often an employer's payroll deposits are made to the IRS?
• Which item must employees have to pass a job performance evaluation?
• After the building plans are approved, what is the next step?
• If a contractor discovers a serious code violation in approved plans, which statement is correct?
• Who is typically responsible for correcting unsafe or faulty equipment found on a job site?
• On a job site, a Cal/OSHA inspector discovers that a piece of equipment does not comply with a new safety standard. A temporary variance may be granted if the equipment
• Which of the following best describes the required formatting for the disciplinary notice?
• Who must sign a joint control addendum to a home improvement contract?
• A small contractor with no employees working from a garage: which type of insurance is not necessary at this time?
• Which action is essential for a change order to be binding?
• Which financial concept is fixed and does not vary with production volume?
• What does a stop payment notice accomplish in public construction financing?
• Which factor would indicate someone is more likely an independent contractor than an employee?
• A stop payment notice would block funds from the :
• DOSH must investigate a complaint charging a serious violation of health or safety standards within :
• What is the consequence if a license is not renewed within five years after expiration?
• You are required to have workers' compensation insurance policy when you have which license?
• After a job is completed, the owner decides to have additional work done. How should the contractor proceed?
• How often should a job supervisor or responsible managing employee visit the job site?
• A Notice of Completion must be recorded within how many days after work is completed?
• In the scenario described, which statement about releases is correct?
• Which bond is designed to guarantee the project will be completed?
• You may not represent yourself in court and must be represented by an attorney if you are a:
• Bob Smith is an RME and works full-time for XYZ Construction Co. He holds an individual license and wants to bid and build wood decks on weekends. Is this legal?
• Which factor would qualify a person as an independent contractor?
• When should you let your attorney see a construction contract?
• The purpose of a Preliminary Notice for private work is to:
• Which statement best describes the difference between 'claims-made' and 'occurrence' liability insurance?
• In California, a contractor's license is required if the total cost of one or more contracts on a project exceeds or equals how much in labor and materials?
• If a contractor forgets to renew his or her license on time, the expired license may be renewed any time within — after its expiration without reapplying for a license and fulfilling the exam or waiver requirements again
• What does an income statement show?
• Which factor determines how often payroll deposits are made to the IRS?
• How many days does a claimant have to record a Lis Pendens after filing a mechanics lien foreclosure lawsuit?
• Excavators must clearly mark the boundaries of a work area, usually with what color paint?
• Using money from a current job to pay for unrelated projects is called:
• Before starting excavation at a job site, you should notify which organization?
• The CSLB arbitration program provides free of charge an arbitrator and:
• A new owner inherits a collective bargaining agreement with a three-year successor clause. The clause binds the successor for how long?
• Waiver of the Contractors License Law and federal Truth in Lending Act regarding a loan as a condition precedent to a home improvement contract is permitted if the :
• A new contractor without a supplier credit account must pay for delivered materials before delivery. Which option reflects this requirement?
• If a homeowner is 65 years or older, how long do they have to cancel a home improvement contract?
• For a large construction project, which scheduling method is considered the best?
• A subcontractor or material supplier has how many days to file a lien once a Notice of Completion has been recorded?
• A balance sheet shows:
• What information must be included in a stop notice?
• A company car used for general sales activities is depreciated under which cost category?
• Which action is required if asbestos is discovered in construction materials at greater than 0.1%?
• Which statement about quarterly payroll tax reporting is correct?
• What notes are you looking for when you get a set of as-built plans?
• What must licensed plumbing (C-36), electrical sign (C-45), and well drilling (C-57) contractors have displayed on both sides of their commercial vehicles?
• Which agency would you contact when changing the location of a driveway on private property?