2024 CALIFORNIA CONTRACTORS LICENSE TEST CLASS EXAM QUESTIONS WITH 100% CORRECT ANSWERS, Exams of Advanced Education

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2024 CALIFORNIA

CONTRACTORS LICENSE TEST

CLASS EXAM QUESTIONS WITH

100% CORRECT ANSWERS

Who is responsible for providing the owner a copy of the "Notice of Cancellation"? - CORRECT ANSWERS-The Prime Contractor In which of the following circumstances must you provide your license number? - CORRECT ANSWERS-All contracts, all Advertising, All preliminary Notices. Who is responsible for determining when the project is complete? - CORRECT ANSWERS-The owner/ his Agent Who does not need a contractors License? - CORRECT ANSWERS-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 - CORRECT ANSWERS-$15, When licensed as a Sole Proprietor the license belongs to - CORRECT ANSWERS-the Company Which is true of an inactive license? - CORRECT ANSWERS-Must be renewed every 4 Years How many classifications can an RME apply for? - CORRECT ANSWERS-As many classifications as he or she can qualify for. Stop Notices are Bonder for - CORRECT ANSWERS-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: - CORRECT ANSWERS-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: - CORRECT ANSWERS-Overhead expenses Direct Labor is compromised of: - CORRECT ANSWERS-cost for labor and payroll taxes Which of the following is an asset in the Balance sheet? - CORRECT ANSWERS-Accounts Receivable Direct Costs Consist of: - CORRECT ANSWERS-Direct Labor, Direct labor burden, direct materials and other direct costs. Good Cash Flow is achieved when: - CORRECT ANSWERS-current liabilities are less than current assets Equity is: - CORRECT ANSWERS-Total assets less total liabilities Networking Capital is: - CORRECT ANSWERS-the difference between current assets and current liabilities A prime contractor shall pay his or her subcontractors - CORRECT ANSWERS- 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? - CORRECT ANSWERS-Before conducting Business During a declared state of emergency how much may a contractor increase his prices? - CORRECT ANSWERS-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?

• CORRECT ANSWERS-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----- - CORRECT ANSWERS-2 years, 4 years

Who signs a "Joint Control Agreement"? - CORRECT ANSWERS-The lender, the property owner and the Prime Contractor. How long will the CSLB hold a contractor responsible for observable defects?

• CORRECT ANSWERS-4 years The CSLB offers a free voluntary arbitration program for disputes alleged damages: - CORRECT ANSWERS-Between $15,000 and $50, 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? - CORRECT ANSWERS-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? - CORRECT ANSWERS-the state will hold the contractor liable for the entire term of the written warranty. 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: - CORRECT ANSWERS-$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? - CORRECT ANSWERS- $3,125 (2,500/.8) When business is bad which of the following - CORRECT ANSWERS-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? - CORRECT ANSWERS-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?
• CORRECT ANSWERS-Stop what you are doing and deal with the owners complaint Subcontractors are selected on the basis of ------------. - CORRECT ANSWERS- 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? - CORRECT ANSWERS-Critical Path Method

What is the advantage to always using the same method to calculate your bid? - CORRECT ANSWERS-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? - CORRECT ANSWERS-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.