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You are the qualifier for an active contractor's license. How do you inactivate the license? - Correct Answer ✅Complete app to Inactivate License The federal Employer Identification Number (EIN) is issued by the: - Correct Answer ✅IRS If there is a problem with a code violation after the project is complete, who is responsible? - Correct Answer ✅Architect and Contractor Business records must be kept and made available for inspection by the Registrar of Contractors for a period of _____ after completion of a construction project or operation. - Correct Answer ✅5 years What does it mean when a subcontractor signs a waiver and release form on a public works project? - Correct Answer ✅The subcontractor gives up the right to lien the construction funds. Some counties have an additional sales tax added to the base rate. Which of the following is a correct statement regarding this additional tax? - Correct Answer ✅You must pay the additional tax in the county where the materials were purchased.
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What possible reason would an owner have for requiring an unconditional lien release from a subcontractor? - Correct Answer ✅The owner's property covered by the release may not be liened. How much money can a contractor take as a down payment for work? - Correct Answer ✅10% or $1000, whichever is less If a contract is canceled and materials have already been delievered to the project, how many days do you have to pick up the unused materials? - Correct Answer ✅20 days As required by the Immigration Reform and Control Act, all employees hired on or after November 7, 1986 must complete Form _____ to verify their employment eligibility status. - Correct Answer ✅I- What building code must a contractor follow? - Correct Answer ✅Local Code The employer is required to provide employee information, training, and certification as per T8 CCR. As required by T8 CCR, the employer shall ensure that all employees and supervisors that perform any lead- related construction work are trained by an accredited training provider and are then certified by the______________________. - Correct Answer ✅California Department of Health Services
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Where is the "Notice of Right to Cancel" found on a home improvement contract? - Correct Answer ✅Near the client signature What sort of notes are you looking for when you get a set of as-built plans? - Correct Answer ✅Changes Insured employers must report every work-related illness or injury to their workers' compensation carrier within _____ of the incident. - Correct Answer ✅5 days Every employer of _____ or more full- or part-time employees must keep written health and safety records for _____ years. - Correct Answer ✅11 & 5 Which of the following financial ratios is the strictest measure of liquidity? - Correct Answer ✅Quick ratio DOSH must investigate a complaint charging a serious violation of health or safety standards within: - Correct Answer ✅Three working days How often are you required to pay sales tax? - Correct Answer ✅It depends on the expected amount of taxable sales.
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Why would a contractor have a case in the Unlimited Jurisdiction Superior Court? - Correct Answer ✅if it is a dispute of more than $25, What kind of discount do lumber yards and other suppliers offer to contractors who pay their bills promptly? - Correct Answer ✅1-2% A prime contractor entered into a construction contract with a subcontractor. An employee of the subcontractor was injured, but unfortunately the subcontractor had not secured workers' compensation coverage. Which of the following statements best describes the situation, except in cases of fraud? - Correct Answer ✅The subcontractor is guilty, but the prime contractor must take responsibility for the injuries. Is it legal for a contractor to require employees to take lie detector tests? - Correct Answer ✅It is not legal for the contractor to require lie detector tests, but it would be legal for a federal, state, or local public agency to require lie detector tests of their employees. Is it legal for a contractor to pay employees in cash? - Correct Answer ✅Yes, if the contractor provides each employee with a wage deduction statement semimonthly or at the time of each wage payment.
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A(n) _____ summarizes revenues, cost of sales, and operating expenses over a period of time. - Correct Answer ✅income statement A contractor has had a problem with employees stealing tools and equipment from job sites. When conducting job interviews, may the contractor ask prospective employees about their arrest records? - Correct Answer ✅It is not legal to ask prospective employees about arrests not leading to convictions. When an owner signs a receipt for a stop notice, it usually means the owner: - Correct Answer ✅recognizes that a lien could be placed on funds How long does a client have to cancel a contract for repairs that are the result of an event for which a State of Emergency was declared? - Correct Answer ✅7 business days A contractor is looking for an insurance policy to cover a high degree of exposure to risk. Of the following, which policy would be best for this purpose? - Correct Answer ✅Umbrella Before beginning work, an employer or contractor must inquire whether asbestos is present in any building constructed prior to: - Correct Answer ✅ 1978
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Who pays FUTA? - Correct Answer ✅The employer pays FUTA until an employees taxable wages exceed $7,000. What information must be included in a Stop Notice? - Correct Answer ✅The kind of labor, services, equipment, or materials furnished or agreed to be furnished If you are planning to dig, drill, and bore at a job site, you should notify _____ before starting work. - Correct Answer ✅the regional Underground Service Alert Notification Center When can a material supplier perfect a mechanics lien? - Correct Answer ✅After the goods have been installed in the structure. What will happen if a contractor who is awarded the bid on a public works project pays less than the prevailing wage? - Correct Answer ✅The contractor will be required to pay back-wages to the employees. 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. - Correct Answer ✅5 years
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Is it legal for a contractor to hire professional strikebreakers to replace striking employees? - Correct Answer ✅No. The contractor is subject to a maximum fine of $1,000 and/or a maximum jail sentence of 90 days Mechanics Lien - Correct Answer ✅Lien on the Property Stop Notice - Correct Answer ✅A lien on the funds Your accountant advises you to set up a cost management system. What does this system do? - Correct Answer ✅It gives a cost history to analyze labor and material costs. When a subcontractor does work on a public works contract, the public agency considers the subcontractor to be: - Correct Answer ✅an employee of the prime contractor If a worker's wages are garnished and the labor contract provides less protection than the State's guidelines, what does the law require? - Correct Answer ✅The section of the contract providing less protection is void. On a time-and-materials job, you should - Correct Answer ✅Add profit and overhead to labor and materials
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If a newly hired employee does not have an SSN, what should be done?
- Correct Answer ✅The employee must apply for an SSN. An employer must furnish an employee with a completed IRS Form W- (Wage and Tax Statement) by: - Correct Answer ✅31-Jan How many days does a contractor have to notify CSLB after being issued a workers' compensation insurance policy? - Correct Answer ✅90 Days How often are FICA taxes reported and paid? - Correct Answer ✅Quarterly The purpose of a "Preliminary 20-day Notice" for private work is to: - Correct Answer ✅notify the owner that the subcontractor/supplier making improvements to their property has the right to file a mechanic's lien if not paid. When balancing the accounts receivable, which of the following would have no effect? - Correct Answer ✅Posting to the wrong accounts- receivable account. A subcontractor who does not serve a preliminary notice: - Correct Answer ✅loses both stop notice and mechanics' lien rights
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Warning signs at the location of asbestos work must be readable up to _______ away. - Correct Answer ✅20 feet How many bathrooms must be provided for every 20 employees? - Correct Answer ✅1 bathroom An employer must file federal Form 1099-MISC to report payments of _____ or more per calendar year to persons not treated as employees (e.g., independent contractors) for services performed for the business.
- Correct Answer ✅$ A contractor bids on a home improvement project and earns the bid. Later, he decides not to take the job. Which bond would protect the home owner? - Correct Answer ✅Bid Bond Which of the following statements about a registered home improvement salesperson (HIS) is incorrect? - Correct Answer ✅An HIS registration expires four years from the last day of the month in which it was issued. A balance sheet shows: - Correct Answer ✅assets and liabilities at a certain point in time
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A supplier who is furnishing a contractor with equipment or materials without any form of security other than the reputation of the contractor for paying debts when due has extended what type of credit? - Correct Answer ✅open account Social security tax for a self-employed contractor is: - Correct Answer ✅based on the rate set for the self-employed for the year in which the tax is paid Bob Smith is the RME for the XYZ Construction Co., where he works all week. His own construction business, under a different name and license number, builds decks on weekends. Is this an acceptable practice for Bob? - Correct Answer ✅No: Bob may qualify only XYZ Co.'s license in this case. A notice canceling a home solicitation contract becomes effective: - Correct Answer ✅when the written notice is deposited in the mail Who furnishes SDS sheets? - Correct Answer ✅supplier A contractor is required to report a construction-related civil court judgement to CSLB within ____________. - Correct Answer ✅90 days
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In most construction contracts, the retention may be held for up to _____ days as a guarantee that the prime pays the subcontractors and suppliers. - Correct Answer ✅ 60 If an employee violates a safety rule and causes injury to another employee, who is legally responsible? - Correct Answer ✅The employer A consumer may cancel a home solicitation contract at any time prior to midnight of the _____ after the date of the transaction. - Correct Answer ✅3rd business day When calculating unemployment and disability insurance taxes, an employer would not include: - Correct Answer ✅Severance Pay An employer who receives a citation for a serious violation of Cal/OSHA regulations can be assessed a penalty of up to _____ for each violation.
- Correct Answer ✅$25, An individual who meets certain conditions may serve as the qualifier for up to _____ firms in any one-year period. - Correct Answer ✅three How many days of inactivity must pass before a notice of cessation may be recorded? - Correct Answer ✅30 days
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What should be done with the contractor's copy of IRS Form W-2? - Correct Answer ✅File the copy in the contractor's office. State disability and income taxes are: - Correct Answer ✅reported and paid quarterly A licensed contractor wants to do construction projects with an unlicensed individual. Of the following, which is a legal alternative? - Correct Answer ✅They may form a corporation and obtain a corporate license. Which of the following is not by itself an acceptable form of documentation for filling out an I-9 form? - Correct Answer ✅social securtiy card A Cal/OSHA permit is required for trenches that are _____ or more in depth - Correct Answer ✅5 feet Contractors working on public works projects must renew their registrations with the Department of Industrial Relations (DIR) by: - Correct Answer ✅July 1
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Which state agency issues an employer's ID number? - Correct Answer ✅Employment Development Department Bid bonds, Performance bonds and Payment bonds are included in the _____________ section of the contract specifications. - Correct Answer ✅Contract Forms Of the following, which is a correct statement regarding a schedule of payments in an original bid? - Correct Answer ✅You are not required to include a schedule of payments in the original bid. If the "ARBITRATION OF DISPUTES" clause is not included and initialed by both parties in a home improvement contract, arbitration may not be enforced against any person other than the: - Correct Answer ✅licensee. Of the following four items to consider when bidding, which is the most important? - Correct Answer ✅Profit A contractor on a public works project that, the entire project is over $30,000, the contractor must employ one (1) hour of apprentice work for every ______ hour(s) performed by a journeyman for each separate craft at the end of a project. - Correct Answer ✅5 hours
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How long must an employer keep records of FUTA and other federal payroll taxes? - Correct Answer ✅4 years An "aging" report is: - Correct Answer ✅a way of keeping track of overdue accounts Which of the following is not a misdemeanor? - Correct Answer ✅A home improvement salesperson gave a prospective customer an unconditional gift valued at $5 as part of a sales promotion. Which of the following are the best examples of fixed costs? - Correct Answer ✅rent, truck payment, insurance Which of the following is least important in preparing a bid for a home construction project? - Correct Answer ✅cost of permits When preparing a cost estimate, which of the following could NOT be determined without visiting the site? - Correct Answer ✅location of the electrical source On a small job, what is the best way to make an efficient schedule? - Correct Answer ✅bar chart
