Download CA Contractors License Test Questions and Answers and more Exams Nursing in PDF only on Docsity! CA Contractors license test questions with correct answers How much time does a contractor have to renew his license after the expiration date without retaking the exam? CORRECT ANSWER 5 year When you collect sales tax from your customer for goods, which agency do you report and pay sales tax collected? CORRECT ANSWER State board of equalization Sales tax is a state tax. State income taxes are payable to the franchise tax board. IRS only collects federal taxes How long is the contractor liable for patent or visible defects? CORRECT ANSWER 4 years How long is the contractorr liable for latent or structural defects CORRECT ANSWER Latent is an invisible or structural defect liable for up to 10 years Accounts receivable contains CORRECT ANSWER Retention Retention usually 10%; it is withheld by the owner from the contract to ensure that the job is done properly and subcontractors are paid. What is considered a fixed cost to a contractor? CORRECT ANSWER Office rent What is considered a variable cost to contractors? CORRECT ANSWER Construction material If a home solicitation presentation is made in spanish, the contract language must be CORRECT ANSWER spanish If the employer requires a pre-employement physical exam, who must pay for the exam? CORRECT ANSWER Employer How often should a contractor renew his license? CORRECT ANSWER 2 years Licenses become void after 5 What is the overtime pay rate after 8hrs of work CORRECT ANSWER 1.5. after 12, rate doubles What should be included in the change order form CORRECT ANSWER Reason for change What is the benefit of arbitration over legislation CORRECT ANSWER Arbitration is cheaper When the total price of the bid is over____ the contractor must be licensed CORRECT ANSWER $500 Where does a contractor/employer obtain a Federal Employer Identifacation Number CORRECT ANSWER IRS In small claims court CORRECT ANSWER You cannot be presented by an attorney. If the claim is appealed, you can have an attorney Who publishes the material safety data sheet? CORRECT ANSWER Manufacturer What are fixed costs in the construction business CORRECT ANSWER Rent, Managers salary What does the ceiling limit mean in tax CORRECT ANSWER Max tax that can be imposed What does the occurrence basis cover in liability insurance? CORRECT ANSWER After the insurance policy has expired, the contractor is still covered Occurrence basis means that as long as you had insurance during the time of the accident, you will be covered, even if the claim was filed after the expiration of the policy If an employee shows up 15 minutes late to work, what is the max amount of time the employer can deduct from wages? CORRECT ANSWER 30 minutes Whats the max amount of time a minor can work on a school day? CORRECT ANSWER 4 hrs It is recommended for a contractor to renew the contractors license bond when? CORRECT ANSWER 30 days before it expires What costs are significant when bidding on public works projects CORRECT ANSWER wages Where would the mechanics lien be recorded CORRECT ANSWER county recorder office What's the difference between fixed costs and overhead costs CORRECT ANSWER Fixed costs fall under the overhead What is the first step that should be taken if you discover human remains or burial artifacts at any site other than a cemetary CORRECT ANSWER Stop immediately and contact the county coroner What is the most effective scheduling system CORRECT ANSWER Critical path method is the most effective. Calendar planner and bar chart are also applicable When the company ownership has changed, the collective bargaining agreement will be binding or effective for how long? CORRECT ANSWER Will be binding until it expires If the area contains more than _____ of asbestos, The contractor must obtain a permit from DOSH CORRECT ANSWER 100 Complaints for non-serious violation must be investigated by DOSH within how many days CORRECT ANSWER 14 Complaints for serious violation must be investigated within how many days? CORRECT ANSWER 3 Emplooyer contractor must pay FUTA deposits how often? CORRECT ANSWER Quarterly If the customer does not pay his or her invoice on time, what do you do? CORRECT ANSWER Start charging interest If a license is revoked, how long until the licensee can obtain another license? CORRECT ANSWER 1 year and then apply for an entirely new license Penal Code CORRECT ANSWER Deals with crimes, penalties, state prisons, county jails, criminal law procedures and apprehension of criminals in california Gov Code CORRECT ANSWER Laws regulating how different local and state gov agencies are to be organized and operated. Civil code CORRECT ANSWER Deals with relationships between people Criminal law CORRECT ANSWER deals with acts that are against society Bids for gov work fall under which code? CORRECT ANSWER Gov code Performance bond CORRECT ANSWER Guarantees the job will be completed according to the building plans and specifacations. If the work is unacceptable or the project is abandoned, the bonding company may chose another contractor to complete the wok or settle for damages Payment bond CORRECT ANSWER Guarantee to the owner that no liens for materials or labor will be filed against the property Contract bonds CORRECT ANSWER Guaantees both job completion and payment of all labor and materials Subletting and subcontracting fair prices act is also known as CORRECT ANSWER Listing laws - intended to prevent prime contractors from bid shopping and bid pending