California Contractors License Test
Class Questions Already Passed
Who does not need a contractors License? ✔✔someone who does certain construction on
commercial agricultural property
The contractor surety Bond neces
...
California Contractors License Test
Class Questions Already Passed
Who does not need a contractors License? ✔✔someone who does certain construction on
commercial agricultural property
The contractor surety Bond necessary for most contractors to obtain their license is in the amount
of ✔✔$15,000
When licensed as a Sole Proprietor the license belongs to ✔✔the Company
Which is true of an inactive license? ✔✔Must be renewed every 4 Years
How many classifications can an RME apply for? ✔✔As many classifications as he or she can
qualify for.
A prime contractor shall pay his or her subcontractors ✔✔within 7 days of receipt of each
progress payment
A contractor wants to use a fictitious name as a business name style. When does the fictitious
name statement needed to be filed? ✔✔Before conducting Business
During a declared state of emergency how much may a contractor increase his prices?
✔✔10%above the price just prior to the declared state of emergency.
If John Burroughs the sole proprietor of a pluming company is applying for a license as am
individual, which of the following name styles is not permitted? ✔✔permitted: John Burroughs
Burroughs Plumbing Co.
J.B. Co.
Not-Permitted: John Burroughs Inc.
Active licenses must be registered every------ and inactive licenses should be registered every----
- ✔✔2 years, 4 years
After you pass the state license test what should you do in order to receive an active license
number? ✔✔Pay your registration fees. Submit a complete asbestos open book examination.
Show proof of workers comp insurance or submit a waiver of workers comp and submit your
"pass" letter.
Which of the following may qualify for more than one contractors license? ✔✔Sole proprietor.
How many classifications may a qualifier add to a license? ✔✔As many qualifications as he
qualifies for.
which of the following may be protected by a Contract Bond? ✔✔-A client damaged by the
contractors violation of the contract.
-Any person damaged by contractor fraud
-Any contractor damaged by contractors failure to pay wages.
What is the best way for the homeowner to protect his property from having a lien placed on his
property, when signing a Home improvement contract. ✔✔Require the Prime Contractor to
Supply a performance and Payment Bond.
CSLB established the State Wide Investigative Fraud Team (SWIFT). CSLB'S SWIFT has the
authority to: ✔✔Cite those not properly licensed
Which is not part of the Home Improvement Contract? ✔✔Preliminary Notice
What us the purpose of the Preliminary Notice? ✔✔Assert Mechanic Liens and Stop notice
Rights
Preliminary Notices are filed? ✔✔within 20 days from first furnishing labor or materials.
Which of the following is the most important practices to follow when trying to avoid
disagreements with an owner? ✔✔Be sure to include a detailed description of the project and
everything that is to be done in the contract.
Why should a contractor keep a record of all Change Orders? ✔✔State law Requires It
Which of the following people file a Stop Notice? ✔✔a subcontractor contracted to do specialty
trade and was not paid.
Who signs a "Joint Control Agreement"? ✔✔The lender, the property owner and the Prime
Contractor.
How long will the CSLB hold a contractor responsible for observable defects? ✔✔4 years
The CSLB offers a free voluntary arbitration program for disputes alleged damages: ✔✔Between
$15,000 and $50,000
If a contractor includes provision in a contract for use of private arbitration and a dispute
between the owner and the contractor makes an arbitration necessary, who will bare the cost of a
private arbitrator? ✔✔The Owner and contractor will slit the cost of the arbitration.
If a contractor provides the owner with a 10-year written warranty covering a patio cover he has
installed, and the cover begins to deteriorate after 5 years of being installed which is true?
✔✔the state will hold the contractor liable for the entire term of the written warranty.
Who is responsible for providing the owner a copy of the "Notice of Cancellation"? ✔✔The
Prime Contractor
In which of the following circumstances must you provide your license number? ✔✔All
contracts, all Advertising, All preliminary Notices.
Who is responsible for determining when the project is complete? ✔✔The owner/ his Agent
Stop Notices are Bonder for ✔✔1 & 1/4 the amount of the claim
In drawing up "Home Improvement Contracts," contractors should pay attention to the
requirements of print typeface and point size of the notices and disclosures. Unless a larger
typeface is specified in the law (Business and professions Code) text in any printed form should
be: ✔✔10-pt Typeface and the headers should be at least 10-pt Boldface
The costs of running your business including office expenses etc, is called: ✔✔Overhead
expenses
Direct Labor is compromised of: ✔✔cost for labor and payroll taxes
Which of the following is an asset in the Balance sheet? ✔✔Accounts Receivable
Direct Costs Consist of: ✔✔Direct Labor, Direct labor burden, direct materials and other direct
costs.
Good Cash Flow is achieved when: ✔✔current liabilities are less than current assets
Equity is: ✔✔Total assets less total liabilities
Networking Capital is: ✔✔the difference between current assets and current liabilities
A contractor is preparing a bid for repairs and the contractor estimates his direct costs to b
$1,000. the contractor knows that his overhead is 25% and the contractor wants a 5% profit the
contractor should submit a bid for: ✔✔$1,428.57 (1,000/.70)
a contractor estimates labor and materials to be $2,500. Allowing for 15% overhead and 5%
profit. what should the total bid be? ✔✔$3,125 (2,500/.8)
When business is bad which of the following ✔✔Bid on jobs only if you can make a profit
Unresolved conflicts will result in extra costs and loss time for which of the following? ✔✔the
client, contractor, and state.
If you're working in a DIFICULT phase of a project and the owner comes to you with a
complaint about the windows you have installed what do you do? ✔✔Stop what you are doing
and deal with the owners complaint
Subcontractors are selected on the basis of ------------. ✔✔their availability to perform the job
well, on time and their cost.
Which of the following best helps the contractor bring together materials and labor at the proper
time? ✔✔Critical Path Method
What is the advantage to always using the same method to calculate your bid? ✔✔it saves time
If you are working on a CRITICAL phase of a project and the owner comes to you with a
complaint about he windows you have installed, what do you do? ✔✔Acknowledge the
complaint and tell the owner you'll be right with him as soon as you're finished with what you
are working on.
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