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A list of questions and answers related to the General Building Contractor (B) License in California. It covers topics such as stop notices, mechanics' liens, labor and material bonds, construction loans, and legal requirements for contractors and employers. correct answers to each question and explains key concepts related to the license.
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To whom should a stop notice be delivered? - Correct Answer ✅ The construction lender or awarding authority. What are the 3 ways that a stop notice can be delivered? - Correct Answer ✅ (1) In person (2) Registered mail (3) Certified mail Notice of Completion - Correct Answer ✅ A notice that shortens the lien period to 30 days for a subcontractor and 60 days for a contractor. The clock starts on the filing date of the Notice. notice of nonresponsibility - Correct Answer ✅ A notice provided by law designed to relieve the property owner from responsibility for the cost of unauthorized work done on the property or materials furnished thereof. notice of cessation - Correct Answer ✅ Notice that can be filed by a property owner after work on a construction project has been stopped for 30 continuous days What are the requirements of a stop notice receipt? - Correct Answer ✅ Signed and dated
Can a stop notice be filed on a private property? - Correct Answer ✅ Yes How long must employers keep employment and tax records? - Correct Answer ✅ 4 years Can an employee file a lawsuit against his employer for additional damages if he has received workers' compensation benefits? - Correct Answer ✅ Generally not A prime contractor is legally responsible for ensuring that its subcontractors have workers' compensation insurance for their employees. True or False? - Correct Answer ✅ True. What may happen to a prime contractor if his subcontractor didn't offer worker's comp? - Correct Answer ✅ The prime contractor may be held liable in a lawsuit filed by a subcontractor's injured employee. Group membership - Correct Answer ✅ Race, religion, color, national origin, ancestry, or sex Who enforces the California Labor Code? - Correct Answer ✅ The Division of Labor Standards Enforcement within the Department of Industrial Relations
a lockout, employers prevent employees from working until an agreement is reached. Professional strikebreaker - Correct Answer ✅ A person who has within the past five years become a replacement employee for two or more businesses in the time of strike or lockout. What is the penalty for being or knowingly hiring a professional strikebreaker? - Correct Answer ✅ A minimum $1000 fine and a possibly a sentence of up to 90 days in the county jail. When must an employee be paid double overtime? - Correct Answer ✅ (1) The employee has worked more than 12 hours in a day. (2) The employee has worked more than 8 hours on a 7th consecutive day. If an employee provides a 72-hour notice to his employer that he's quitting, when are his wages due? - Correct Answer ✅ At his last shift When are an employee's wages due if he does not provide a 72-hour notice when he quits? - Correct Answer ✅ 72 hours after his last shift What can an employee do if he does not receive his wages? - Correct Answer ✅ He can file a complaint with the Labor Commissioner.
Which one must be filed with the County Recorder--a stop notice or a mechanics' lien? - Correct Answer ✅ Mechanics' lien Qualifying Individual - Correct Answer ✅ AKA Qualifier The person who meets the experience and examination requirements for the license. The qualifier is responsible for exercising direct supervision and control of their employer's or principal's construction operations to secure compliance with the CSLB. What's the time limit for filing mechanic's liens on a property? - Correct Answer ✅ 90 days following the completion of a contract What's the difference between mechanics' liens and stop notices? - Correct Answer ✅ Mechanics' liens can only be filed on private property while stop notices are filed on public property. A stop notice isn't a lien on property--it's a lien on funds. The public property can still be sold or financed, but the responsible entity must set aside funds to satisfy the contractor's stop notice. How can the owner shorten the 90-day lien period for a completed contract? - Correct Answer ✅ By filing a Notice of Completion, which shortens the lien period to 30 days for a subcontractor and 60 days for a contractor. The clock starts on the filing date of the Notice.
recorder and post it on his property within 10 days of being notified that work will be done on his property. If a contact was not completed, how long does a contractor have to file a mechanic's lien? - Correct Answer ✅ 150 days--60 days after the last day of work performed plus an additional 90 days. How can the owner shorten the lien period for an incomplete contract? - Correct Answer ✅ By filing a Notice of Cessation, which legally terminates the contract, and shortens the lien period to 30 days for a subcontractor and 60 days for a contractor. The clock starts on the filing date of the Notice. How soon can a Notice of Cessation be filed after work stoppage? - Correct Answer ✅ 30 days Preliminary Notice - Correct Answer ✅ Provides notice to all moneyed parties that a particular contractor is working on the project and has the right to file a mechanics' lien if he is not paid properly. What happens if a contractor does not provide a preliminary notice within 20 days of work commencing? - Correct Answer ✅ He forfeits his right to file any mechanics' liens or stop notices.
Can a contractor file a mechanics' lien on public property? - Correct Answer ✅ No, but he can file a stop notice. How soon must a preliminary notice be provided? - Correct Answer ✅ Within 20 days of the contractor commencing work, irrespective of the project's completion date. How soon must the owner file a Notice of Completion if he wants to shorten the period of a mechanic's lien? - Correct Answer ✅ Within 10 days of the completion of the contract What's the time limit for filing a lawsuit to enforce a mechanic's lien? - Correct Answer ✅ 90 days following the filing of the lien Describe the differences between small claims court and arbitration - Correct Answer ✅ (1) A small claims court ruling can be appealed while an arbitrator's ruling cannot be appealed unless he committed fraud. (2) Attorneys aren't allowed in small claims court. (3) Small claims courts have a $7500 limit. (4) Arbitration is more expensive.
How late can a buyer in a home solicitation contract cancel the contract
What is the minimum age for a home improvement salesperson? - Correct Answer ✅ 18 Title of the qualifying individual in a sole ownership entity if he is NOT the owner. Title of the qualifying individual in a partnership if he is NOT a partner. Title of the qualifying individual in an LLC if he is NOT a managing member or managing manager. - Correct Answer ✅ Responsible Managing Employee To what degree must the RME be involved in the business? - Correct Answer ✅ *The RME must be permanently employed by the applicant. *The RME must work at least 32 hours or 80% of the total hours that the business is in operation, whichever is less. What type of business contact information must be submitted on the General Building Contractor application? - Correct Answer ✅ *Physical Address--PO Boxes are unacceptable.
(3) Asbestos Open Book Examination How many and which types of bonds must a contractor have? - Correct Answer ✅ (1) Contractor's Bond, which is worth $15,000 and must be on file with CSLB. The contractor's bond is for the licensee. (2) Bond of Qualifying Individual, which is required if the qualifying individual owns less than 10% of the business. How will my work experience be certified? - Correct Answer ✅ Work experience will be verified through payroll records or similar documents. SWIFT is short for - Correct Answer ✅ Statewide Investigative Fraud Team What's the purpose of SWIFT? - Correct Answer ✅ To catch the unlicensed contractor who prospers at the expense of consumers and legitimate businesses. Does SWIFT need cause or complaint to visit a job site? - Correct Answer ✅ No. SWIFT can visit job site without cause or complaint and require contractors to produce proof of licensure in good standing.
Minimum operating capital for a contracting business - Correct Answer ✅ $ What's the maximum legal price for a job performed by an unlicensed contractor? - Correct Answer ✅ $ 3 types of contractor's licenses - Correct Answer ✅ 1) General Engineering
How many separate licenses can the same individual qualify for? - Correct Answer ✅ 3 What must a licensee do if the qualifying individual disassociates from the business? - Correct Answer ✅ Notify the Registrar and replace the qualifier within 90 days How soon must bonds be filed with the CSLB? - Correct Answer ✅ Within 90 days of the effective data of the bond How long must contractors keep records? - Correct Answer ✅ 5 years Home improvement work - Correct Answer ✅ Any work done to repair, remodel, modernize, or otherwise improve existing residential property. Includes working on driveways, pools, terraces, patios, landscaping, fencing, porches, garages, and basements. What's the fine for a licensed contractor who allows an unlicensed person to use his license? - Correct Answer ✅ $15, What do contractors need to keep records of? - Correct Answer ✅ 1) Contracts
What does Contractors License Law require Home Improvement Salespersons to do? - Correct Answer ✅ Home Improvement Salespersons (HIS) must register with the CSLB before they may legally act in this capacity. List the types of businesses and individuals who don't need contractor's licenses: - Correct Answer ✅ 1) Government agencies
When must an employer pay Federal Unemployment Tax? - Correct Answer ✅ (1) The employer had an employee for at least part of a day during 20 different calendar weeks. (2) The employer paid at least $1500 in wages to all employees during a calendar quarter. Which state payroll taxes is an employer responsible for? - Correct Answer ✅ 1) State Personal Income Tax
What must a licensee do if the qualifying individual dissociates from the business? - Correct Answer ✅ Notify the Registrar and replace the qualifier within 90 days If a business has an RME, is the license issued to the RME or to the business itself? - Correct Answer ✅ The business Joint venture license - Correct Answer ✅ Allows 2 or more licensees to act together as contractors. Does a joint venture license require an exam or a qualifying individual? - Correct Answer ✅ No Prime contractor - Correct Answer ✅ A contractor who has contracted directly with the property owner or the owner's agent. Subcontractor - Correct Answer ✅ A contractor who has entered into a contract with another contractor Mechanic's Lien - Correct Answer ✅ A statutory lien levied by a contractor on the property on which he performed the work to ensure that he gets paid for said work. As long as the mechanic's lien is on it, the property cannot be sold or refinanced.