MHIC MARYLAND HOME IMPROVEMENT CONTRACTORS NASCLA EXAM 2024/2025 | ACTUAL REAL EXAM, Exams of Nursing

Download MHIC MARYLAND HOME IMPROVEMENT CONTRACTORS NASCLA EXAM 2024/2025 | ACTUAL REAL EXAM and more Exams Nursing in PDF only on Docsity! MHIC MARYLAND HOME IMPROVEMENT CONTRACTORS NASCLA EXAM 2024/2025 | ACTUAL REAL EXAM CURRENTLY TESTING VERSIONS | ACCURATE AND VERIFIED FOR GUARANTEED PASS | LATEST UPDATE What is the maximum fine for contracting without a license-second offense - CORRECT ANSWER $5,000 and/or 2 years in jail or both Contractor, jack smith, is not getting along with hector jones , his customer. If he decides not to complete the contract, has jack broken any laws? - CORRECT ANSWER Yes Can a contractor decide to use material other than specified in the contract documents without getting permission from the owner? - CORRECT ANSWER No Contractors may not : - CORRECT ANSWER Lie on their license application Make false promises Misrepresent their service or product Contractor, jack brown, makes a deal with customer, ameal cougar , to provide an estimate of $40,000 on project where the actual cost are $30,000,allowing ameal to pocket $10,000 after securing a mortgage at $40,000 and paying off jack this is : - CORRECT ANSWER Fraud An illegal act A misdemeanor All of the about If a contractor sells personstoos selling or working with the contractor for any reason, the contractor has a responsibility to the state to inform the commission? - CORRECT ANSWER True All advertising has to provide the identifier "Maryland home improvement commission license no___________"or "MHIC - CORRECT ANSWER True What is the maximum penalty the commission may impose upon a contractor, licensed or unlicensed , per violation of these laws - CORRECT ANSWER $5,000 Advertising must be done in a way as to avoid misrepresentating the product, service or Terms of sale so as not to deceive the customer. - CORRECT ANSWER True An applicant must provide to the commission, a credit report with their application. - CORRECT ANSWER True How many days does a contractor have to respond to a receipt of a claim from commission? - CORRECT ANSWER 10 days How many members are there in the Maryland home improvement commission? - CORRECT ANSWER 9 members Of the 9 members on the commission , how many are experienced in home improvement ? - CORRECT ANSWER 4 member How long does a claimant have to bring a claim against the guaranty fund? - CORRECT ANSWER 3 years from discovery of the loss or damage How many days does a contractor have to respond in writing to the copy of claim that was sent by the commission? - CORRECT ANSWER 10 days If within ________ after the commission gives notice , a contractor on whose amount a claim was paid does not reimburse the fund in full, the commission may sue the contractor for reimbursement. - CORRECT ANSWER 60 days In addtion to full reimbursement of the fund, a contractor is responsible to pay at least _________interest on the amount to reimburse. - CORRECT ANSWER 10 % If the Commission decides to sue a contractor because they believe that the contractor has or will cause harm to another person, they can sue for: - CORRECT ANSWER 1. injunctive relief against the conduct 2. an order for satisfactory completion 3. restitution Can the Commission request financial records at any time? - CORRECT ANSWER yes Must a contractor, sub-contractor, or salesperson who places their license on inactive status pay a fee to renew an inactive license? - CORRECT ANSWER yes Can the Commission take disciplinary action against an inactive license? - CORRECT ANSWER yes How many days does a licensee have to notify the Commission of change in control in ownership, management, address or trade name? - CORRECT ANSWER 10 days How many contractors may a salesperson represent? - CORRECT ANSWER 2 The following are exempt from licensure requirements: Associated Answers 1 employees for labor services 2 employees for clerical work 3 Salespersons 4 both a and b - CORRECT ANSWER both a and b What is the minimum amount of liability insurance needed? - CORRECT ANSWER $50,000 An applicant for licensure must have 2 years trade experience or comparable educational training. - CORRECT ANSWER true What is the cost of the initial application fee for a home improvement contractors' license? - CORRECT ANSWER $250 The Commission can ask an applicant for information about the applicant's... 1 character 2 experience 3 financial stability 4 all of the above - CORRECT ANSWER All of the above The financial information provided by an applicant is public information. - CORRECT ANSWER No If an application for a license is denied, the applicant can request a hearing within ______________ after the notice of denial is mailed. - CORRECT ANSWER 10 days A salesperson will not be issued a license until the salesperson becomes employed or contractually involved with a licensed contractor. - CORRECT ANSWER True What is the fee to place a license on inactive status? - CORRECT ANSWER no more than $50 A person whose license is put on inactive status... 1 must return their license to the State. 2 doesn't have to maintain the required liability insurance coverage. 3 must not do any contracting. 4 all of the above. - CORRECT ANSWER All of the above Must a contractor, sub-contractor, or salesperson who places their license on inactive status pay a fee to renew an inactive license? - CORRECT ANSWER Yes How many days does a licensee have to notify the Commission of change in control in ownership, management, address or trade name? - CORRECT ANSWER 10 days How many contractors may a salesperson represent? - CORRECT ANSWER 2 Jim Smith is a Sales Representative for ABC Construction. Can he accept a position as a Sales Representative for Top Notch Construction without first informing ABC Construction of his intentions and also informing Top Notch Construction of his existing situation with ABC Construction? - CORRECT ANSWER No When a sales person is no longer associated with a company they represented, the contractor must: - CORRECT ANSWER give the commission written notice The Commission may suspend or revoke a license if the licensee: 1 lies on their application 2 practices fraud while being licensed 3 is convicted of a felony 4 all of the above - CORRECT ANSWER all of the above A contractor may not pay a subcontractor who is required to be licensed unless the subcontractor holds the required license. - CORRECT ANSWER True Licensed Home Improvement Contractors are also required to hold a construction license issued by the Clerk of the Court under Title 17. - CORRECT ANSWER False Home owners have a right to bring a claim against the Guaranty Fund for situations of _________________________ concerning restoration, repair, replacement or completion that arise from unworkmanlike, inadequate, or incomplete home improvement. - CORRECT ANSWER actual loss Contractors may not: 1 misrepresent their service or product 2 make false promises 3 lie on their license application 4 all of the above - CORRECT ANSWER All of the above Contractor, Jack Brown, makes a deal with customer, Ameal Cougar, to provide an estimate of $40,000 on a project where the actual costs are $30,000, allowing Ameal to pocket $10,000 after securing a mortgage at $40,000 and paying off Jack. This is: 1 fraud 2 an illegal act 3 a misdemeanor 4 all of the above - CORRECT ANSWER All of the above A licensed salesperson can only sell the services of licensed contractor or subcontractors. - CORRECT ANSWER True If a contractor's salesperson stops selling or working with the contractor for any reason, the contractor has a responsibility to the State to inform the Commission. - CORRECT ANSWER True All advertising has to provide the identifier "Maryland Home Improvement Commission License No ______________" or "MHIC#__________". - CORRECT ANSWER True What is the maximum penalty the Commission may impose upon a contractor, licensed or unlicensed, per violation of these laws: - CORRECT ANSWER $5,000 Advertising must be done in a way as to avoid misrepresenting the product, service or terms of sale so as not to deceive the customer. - CORRECT ANSWER True An applicant must provide to the Commission, a credit report with their application. - CORRECT ANSWER True How many days does a contractor have to respond to a receipt of a claim from the commission? - CORRECT ANSWER 10 days A Home Improvement Contractor is a person who offers to... - CORRECT ANSWER perform repairs for a homeowner. What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500? - CORRECT ANSWER $500 What is the MAXIMUM amount that a home improvement contactor may pay to a homeowner for referring a client to the contractor? - CORRECT ANSWER The contractor is NOT permitted to compensate the homeowner for referrals. An applicant was denied a license after a hearing. When may the applicant reapply? - CORRECT ANSWER 6 months. What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor? - CORRECT ANSWER No license is required. The Home Improvement Commission holds a hearing to determine the status of an individual's application for licensure. The Commission MUST notify the applicant of its decision with (how many days after the hearing)? - CORRECT ANSWER 60 days. A homeowner cancels a $1,000 door-to-door contract 2 days after signing the contract. The MAXIMUM service fee that me be collected by the contractor is - CORRECT ANSWER nothing. No service fee may be collected. A renewal notice MUST be mailed by the Commission within how many months of the license expiration date? - CORRECT ANSWER 1 month A license that is NOT renewed will... - CORRECT ANSWER expire. A local county or municipality may ________ the _______ of home improvements. - CORRECT ANSWER regulate, quality The office of the Home Improvement Commission is located in... - CORRECT ANSWER Baltimore. The official recordkeeper of the Home Improvement Commission, is the _________ ________ of the Commission - CORRECT ANSWER Executive Director Who investigates complaints against Home Improvement licensees? - CORRECT ANSWER Investigative staff of the Home Improvement Commission. A person who is convicted of acting without a required Home Improvement license MUST wait a MINIMUM of what time period before being issued a license? - CORRECT ANSWER 1 year. The Commission MUST give a MINIMUM of how many days notice to a license about a hearing on disciplinary action against the licensee? - CORRECT ANSWER 10 days. All door-to-door sales contracts MUST include (what two things)? - CORRECT ANSWER the name and address of the seller. The cost of a project includes $1,000 for goods and services, $50 for delivery, and $125 for interest. What is the purchase price for this contract? - CORRECT ANSWER $1,175 A contract is signed at noon on Thursday, September 20. The buyer can cancel this contract anytime up until... - CORRECT ANSWER noon on Thursday, September 27. Estimate Planning - CORRECT ANSWER In order for a contractor to present a proposal to a customer, they first have to create a cost estimate of the entire project. Review the project Do employers have to pay overtime pay to employee who works on a holiday? - CORRECT ANSWER No The Wage Garnishment Law prohibits an employer from firing an employee whose pay is garnished for payment of a single debt. - CORRECT ANSWER True What is the purpose of New Hire Reporting? 1 to collect taxes 2 to detect benefits fraud 3 to enforce child support orders 4 both b and c - CORRECT ANSWER to detect benefits fraud and to enforce child support orders both b and c Employers in Maryland are required to report their payroll and pay unemployment insurance taxes on their Quarterly Contribution Report - CORRECT ANSWER True How many employees must an employer have before they are required to purchase Workers Compensation Insurance? - CORRECT ANSWER 1 What benefit is provided to an injured employee if needed? 1 Wage replacement and payment for loss or permanent damage to body parts 2 Rehabilitation costs 3 Current and future medical costs 4 All of the above - CORRECT ANSWER all of the above are benefits provided to an injured employee if needed If, due to an injury that occurred at work, an employee is unable to return to work after three work days, how long does the employer have to report this accident to the Workers Compensation Commission? - CORRECT ANSWER 10 days What is the penalty for not providing Workers Compensation Insurance to your employee(s)? - CORRECT ANSWER Up to $5000 fine, imprisoned for one year, or both What governmental department in Maryland administers the Laws for Unemployment? - CORRECT ANSWER Department of Labor, Licensing and Regulation After how many days of conducting business with an employee is an employer in violation of the law if they have not yet registered for Unemployment Insurance? - CORRECT ANSWER 20 days Which of the following rates is for unemployment insurance that is the average rate paid by all employers over the last five years? - CORRECT ANSWER New Account Rate Employers are required to pay a percentage of the first $8,500 of wages for each employee to cover the cost of unemployment insurance. This is 100% an employer expense. - CORRECT ANSWER True Can an employer legally pay an hourly wage earner only once a month? - CORRECT ANSWER No minimum of twice a month Can an employer, as a form of disciplinary action, legally doc an employee's earned wage? - CORRECT ANSWER No What is the federal minimum wage? - CORRECT ANSWER $7.25 /hr After working more than 40 hours in a seven day week, employees in the building trades would be paid 1 1/2 times their usually hourly pay for those hours over 40. - CORRECT ANSWER True If a new employee is under 20 years of age, what is the required minimum wage during their first 90 consecutive calendar days of employment? - CORRECT ANSWER $4.25 In the absence of an express contract, employees may be hired or fired for almost any reason - whether fair or not - or for no reason at all. - CORRECT ANSWER True Can an employer legally require an employee to be tested for the illegal use of drugs and alcohol for a "legitimate business purpose".? - CORRECT ANSWER True Minors between 14 and 17, in order to be gainfully employed, must have a work permit. - CORRECT ANSWER True Workweek Defined under FLSA - CORRECT ANSWER A workweek is considered 168 hours during seven 24 hour periods. It may begin on any day of the week and at any hour of the day Required Recordkeeping. The following records must be kept and preserved for at least three years. - CORRECT ANSWER 1. Employee's full name and social security number. 2. Address, including zip code. 3. Birth date, if younger than 19. 4. Sex and occupation. 5. Time and day of week when employee's workweek begins. 6. Hours worked each day. 7. Total hours worked each workweek. 8. Basis on which employee's wages are paid (e.g., "$9 per hour", "$440 a week", "piecework") 9. Regular hourly pay rate. 10. Total daily or weekly straight-time earnings. 11. Total overtime earnings for the workweek. 12. All additions to or deductions from the employee's wages. 13. Total wages paid each pay period. A home improvement contract in compliance with the home improvement laws would include all of the following except - CORRECT ANSWER Names and license numbers of subcontractors A salesperson may not represent 2 contractors at the same time for the same project. - CORRECT ANSWER True Can a sales person legally accept money for themselves from the customer - CORRECT ANSWER No It is against the law for building and permits departments to issue a permit to contractor without the contractors license number. - CORRECT ANSWER True If a contractor fails to correct violation of the building code within reasonable time period, the county or municipality inspecting the project shall notify the commission - CORRECT ANSWER True What is the maximum fine for contracting without a license-second offense - CORRECT ANSWER $5,000 and/or 2 years in jail or both Contractor, jack smith, is not getting along with hector jones , his customer. If he decides not to complete the contract, has jack broken any laws? - CORRECT ANSWER Yes Can a contractor decide to use material other than specified in the contract documents without getting permission from the owner? - CORRECT ANSWER No Contractors may not : - CORRECT ANSWER Lie on their license application Make false promises Misrepresent their service or product Contractor, jack brown, makes a deal with customer, ameal cougar , to provide an estimate of $40,000 on project where the actual cost are $30,000,allowing ameal to pocket $10,000 after securing a mortgage at $40,000 and paying off jack this is : - CORRECT ANSWER Fraud An illegal act A misdemeanor All of the about If a contractor sells personstoos selling or working with the contractor for any reason, the contractor has a responsibility to the state to inform the commission? - CORRECT ANSWER True All advertising has to provide the identifier "Maryland home improvement commission license no___________"or "MHIC - CORRECT ANSWER True What is the maximum penalty the commission may impose upon a contractor, licensed or unlicensed , per violation of these laws - CORRECT ANSWER $5,000 Advertising must be done in a way as to avoid misrepresentating the product, service or Terms of sale so as not to deceive the customer. - CORRECT ANSWER True An applicant must provide to the commission, a credit report with their application. - CORRECT ANSWER True How many days does a contractor have to respond to a receipt of a claim from commission? - CORRECT ANSWER 10 days How many members are there in the Maryland home improvement commission? - CORRECT ANSWER 9 members Of the 9 members on the commission , how many are experienced in home improvement ? - CORRECT ANSWER 4 member If a contract was agreed to and signed by both parties for the purchase of replacement windows at a trade show, would this sale be subject to the laws of the Door-to-Door Sales Act? - CORRECT ANSWER Yes If a consumer, by phone, contacted a roofing company and asked for a bid for their home, and the contract is signed at the home of the consumer without ever going to the office of the roofing company, is this sale subject to the laws of the Door-to-Door Sales Act? - CORRECT ANSWER Yes Can a buyer waive his right to cancel a contract that would fall into the category of situations that this law covers in emergency situations? - CORRECT ANSWER Yes When a buyer initiates the contact and requests a contractor to visit the home to make a repair or perform maintenance, is this sale to repair or maintain this home subject to the Door-to-Door Sales Act? - CORRECT ANSWER No If a customer made a purchase entirely over the phone or by mail, would this sales be subject to the Door-to-Door Sales Act? - CORRECT ANSWER No Contractors cannot fail to provide a copy of the contract entered into between the contractor and this customer at the time this contract is executed. - CORRECT ANSWER True The contract or sales receipt must inform the buyer in BOLDFACE TYPE a minimum size of __________ points in the area where their signature is required on the document that "You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction." - CORRECT ANSWER 10 points Where applicable, contractors must provide to their customers the form titled, ________________________ at the time of the sale. - CORRECT ANSWER Notice of Cancellation If a customer cancels their transaction with you, how long do you have to return property traded in and money exchanged? - CORRECT ANSWER 10 business days Define license - CORRECT ANSWER is either a contractor or salesperson license that is issued by the Home Improvement Commission. Does a handyman need a license? - CORRECT ANSWER Yes True or False: Home Improvement law does not apply if one of the parties is a government agency - CORRECT ANSWER True Work done a residence inside a military base is excluded from licensing requirements - CORRECT ANSWER True Can local jurisdictions issue home improvement lincenses - CORRECT ANSWER No, only MD Home Improvement Commission is authorized to issue a license to solicit, sell, or perform home improvement services in Maryland Can two or more individuals (such as homeowner and contractor) lawfully agree to ignore the Home Improvement licensing requirement? - CORRECT ANSWER No, waiver is prohibited When was the commission established? - CORRECT ANSWER 1962 How Many commissioners are there? - CORRECT ANSWER 9 (4 must have experience in the business of home improvement; 4 are members of the general public that represent cosumers; and 1 must have experience in banking and finance) What is the most important role of the Commissioners? - CORRECT ANSWER To promulgate regulations for the Commission. These regulations help the public better understand the Home Improvement Law and the Commission's policies How often are the meetings? - CORRECT ANSWER bi-monthly. Meetings are open to the public. What is the requirement for Commissioners? - CORRECT ANSWER Must be a resident of MD for at least 5 years How long if the Commissioner's term? - CORRECT ANSWER 4 years Where is the Commission's office? - CORRECT ANSWER Baltimore, MD Who appoints the Executive Director? - CORRECT ANSWER The Secretary of Department of Labor, Licensing and Regulation What is the Executive Director responsible for? - CORRECT ANSWER the daily operations of the Commission and signs under the seal letters affirming the licensing status of individuals for court proceedings. The Executive director is also responsible for compiling and maintaining a copy of the Commission's current regulations What do investigators do? - CORRECT ANSWER The Commission also employs investigators that review the complaints and Guaranty Fund claims that are received by the Commission. The investigators review complaints against licensed and unlicensed contractors and salespersons. If an investigator determines that a violation may have occurred, what actions can the Commission take? - CORRECT ANSWER The Commission may take disciplinary action which may include reprimand, monetary fine or suspension or revocation of the license. True or False: An individual who holds a home improvement license as a contractor is NOT required to obtain a construction license from the Circuit Courts - CORRECT ANSWER True How long are exams valid for? - CORRECT ANSWER 2 years If a candidate fails the exam, how long must he/she wait before retaking it? - CORRECT ANSWER 30 days the first time. After each subsequent failure a candidate must wait 60 days. What is the insurance requirement for contractor? - CORRECT ANSWER General Liability at least $50,000 What is the Home Improvement Guaranty Fund? - CORRECT ANSWER One of the Commissions most important function is to administer the Home Improvement Guaranty Fund. The fund compensates homeowners for the actual loss caused by the acts or omissions of a licensed contractor. True or False: Is a homeowner hires an unlicensed contractor he/she is eligible to collect money from the fund? - CORRECT ANSWER FALSE - if a homeowner hires an unlicensed contractor, the homeowner will NOT be eligible to collect money from the Fund. What is Actual Loss? - CORRECT ANSWER Actual Loss means the cost to correct or complete a home improvement that is inadequate, unworkmanlike or incomplete. How much can homeowners recover? - CORRECT ANSWER Homeowners may recover up to $20,000 per contract, though they are not eligible to recover more than the amount paid to the contractor against whom the claim is based. Certain costs like: legal fees, interest, consequential damages are not covered by the Fund. What is the max amount that can be awarded from the Guaranty Fund for the acts or omissions of a contractor? - CORRECT ANSWER $100,000 How is the Fund maintained? - CORRECT ANSWER $100 by each contractor at the time of applying for a license. The Commission may also assess each contractor a fee of $50 if the Fund falls below $250,000 How many days does the contractor have to respond to claims from a homeowner once it has been received by the commission? - CORRECT ANSWER Once the Commission receives a claim, it send a copy to the contractor who has 10 days to respond back to the Commission. Who is not eligible to collect from the Fund? - CORRECT ANSWER Spouse, relative, or employee of the contractor, or an officer of the corporation. Similarly, an owner may only Who enforces Door to Door sales act? - CORRECT ANSWER Attorney General of MD How many contractors can a salesperson represent? - CORRECT ANSWER 2 max, but may only represent ONE at the time of sale. What happens if a salesperson leaves a contractor's team? - CORRECT ANSWER The contractor is responsible for notifying the commission What are the provisions for advertising under home improvement law? - CORRECT ANSWER 1) Advertising must contain name, and MHIC license number regardless of whether the advertisement is in print, radio or TV. 2) The advertisement cannot be false, deceptive or misleading For example: if advertisement contains a price which does not include all costs of items necessary for the proper function or appearance of the product, this must be clearly stated. Likewise, any limitation to what will be supplied at the advertised price shall be stated clearly next to the statement; if delivery or installation charges ar extra, the advertisement shall disclose the fact. Vehicles and MIHC - Where is the license number to be displayed? - CORRECT ANSWER both sides of all vehicles What is the penalty for acting as a contractor or salesperson without a license in MD? - CORRECT ANSWER guilty individuals may be incarcerated for 6 months and fined yup to $1000. For subsequent convictions 2 years in jail and up to $5000 fine. When was mold remediation act established? - CORRECT ANSWER MD Mold Remediation Act was established in 2008 to protect the public, improve indoor air quality, and to promote professional standards. What does the Mold remediation Act require? - CORRECT ANSWER Each company that provides mold remediation services must be licensed, and each employee who provides the service must be certified. What is mold? - CORRECT ANSWER Mold means an organism of the class fungi that causes disintegration of organic matter and produces spores, as well as the spores, hyphae,, and mycotoxins that are produced by mold. What is mold remediation? - CORRECT ANSWER Removal, cleaning, sanitizing, demolition, or other treatment of mold or mod contaminated matter that was not intended to be grown at that location. What is the insurance requirements for mold remediation? - CORRECT ANSWER GL in the amount of at leat $1,000,000 Is installing HVAC or AC system home improvement? - CORRECT ANSWER No Lists exceptions to HI License - CORRECT ANSWER - Individual who works for a contractor or suib who is paid by salary and is not a salesperson - A celrical employee, retail clerk, to a licensed contractor - A solicitor for a contractor who calls an owner by phone only - An architect, electriciam, plumber, HVAC contrator (who is reuired by state to meet standards of competency in their profession) - a licensed secuity system tecitian under Title 18 of the Business Occupations Article - A licensed Marine contracor under Title 17, Subtitle 3 The commission may issue a license to an applicant who has violated 8-601 if - CORRECT ANSWER 1 year has passed since the conviction What is term of license - CORRECT ANSWER unless a license is renewed for a 2 year term as provided in this section, the license expires: - If the Sec staggers the term of the licenses, on the date that the Secretary set - If the Sec does not stagger the licenses, on the first June 30 that comes after the effective date of the license in an odd number year How long does a licensee have to notify the Commission of change in business ownership or control - CORRECT ANSWER 10 days How many people in a Hearing Board - CORRECT ANSWER 3 Decision of Hearing Board - CORRECT ANSWER Decision of the Hearing Board shall be: - by majority of votes - in writing - submitted to the Commission Unless, within 15 days after the hearing board submitted its decision to the Commission, the Commission or a member of the Commission finds that a full hearing by the Commission is required: - CORRECT ANSWER - the decision of the Board is final - The decision is a final decision of the Commission - a party who is aggrieved by the decision may take an appeal provided in 8-314 How long after being denied after a hearing can a peson reapply for license - CORRECT ANSWER 6 months What are the conditions for an owner to put a claim against the Fund? - CORRECT ANSWER - Resides in the home as to which the claim is made - Does not own more than 3 residences - Limitation period - a claim shall be made against the fund whitin 3 years after the claimant discovers it, or by use of ordinary diligence, should have discovered the loss or damage Inducements - Tangibel items for advertisement - CORRECT ANSWER To advertise or to promote sales, a contractor or salesperson may give to a propestive customer a tangible item if the cost to the contractor does not exceed $25 Miss-representation - A person MAY NOT make a false promise that is likely to influence, persuade or induce in connection with a home improvement contract - CORRECT ANSWER True - State unemployment ins - company benefits (health ins , vacations, etc) Project equipment cost - Rented - CORRECT ANSWER Take into consideration: - Equipment rental rate - labor cost to pick up and return - labor cost to operate - other costs (fuel) Rent, lease or buy? What are the advantages of leasing? - CORRECT ANSWER - no down payment - duration of payments over a long period making them lower - lease payments are deductible - obsolete equipment is returned to owner Contingencies - CORRECT ANSWER A contingency is sometimes added to an estimate to protect the contractor of anticipated problem or condition. For example - a low risk project may have 2% added How much percentage is usually overhead? - CORRECT ANSWER 5 to 10 percent Examples of project overhead - CORRECT ANSWER - bonds - temporary storage - temp office - security guard - utilities - dumpsters - portable toilets Example of company overhead - CORRECT ANSWER - office rent - accounting fees - taxes - telephone - legal fees - Admin labor How to calculate/add overhead - CORRECT ANSWER Lets say you calculated direct costs $100,000 Project OH 9%, Co OH 11% --> Direct costs are 80% of the total bid price - SINCE OH IS PERCENTAGE OR REVENUE, dive direct costs by 80% (0.80) $100,000/.80= $125,000 Add markup and determine profit - CORRECT ANSWER Usually 15% Steps for Quantity Take off Method - CORRECT ANSWER 1) Determine labor cost for each task 2) Add labor burden 3) Determine material costs 4) Determine project equipment costs 5) Add subcontractor fees 6) Add allowances 7) Add contingencies 8) Add project overhead 9) Add company overhead 10) Add markup and determine profit Define conceptual estimate - CORRECT ANSWER Generally prepared by architects using costs models from previous projects. The contractor may arrive at a much different cost because of the projects unique characteristics Define square foot method of estimating - CORRECT ANSWER project cost is calculated by square footage multiplied by a unit costs What are fist steps to develop a cost code system? - CORRECT ANSWER Project number Activity classification code distribution code (Material M; Labor L; Equipment E; Project Overhead P) Some questions that could lead to legal action and are off limits when interviewing a potential employee - CORRECT ANSWER - How old are you? - Do you have an disabilities? - Are you pregnant? - Are you married? - Do you have any children? - What is your religious affiliation? - What is your sexual orientation? - What is your ethnic background? Questions should be ask in a job interview - CORRECT ANSWER - Ability to work in team - ability to handle conflict - expectations of job (salary, benefits, working hours, etc) - past work history and reasons for leaving previous job - level of expertise or skill - training or education - safety record - questions about the job - pay raises or fringe benefits - reason for discharge, immediate payment of final wages, or discharge notices What are rcord keeping requirements under FLSA? - CORRECT ANSWER The FLSA requires employees to keep records on wages, hours, and other items as specified in Dept of Labor record keeping regulation What are the employer eligibility provisions of the Immigration and Nationality Act? - CORRECT ANSWER The employer eligibility provisions of the Immigration and Nationality Act require employers to verify employee eligibility of all individuals hired. Form I-9 must be kept on file for at least 3 years from the date of hire or 1 year after employment ends, whichever is later What are acceptable documents for I9 - CORRECT ANSWER US passport certificate of US citizenship certificate of naturalization permanent resident card unexpired foreign passport with stamp What is regulated by Americans with Disabilities Act (ADA) ? - CORRECT ANSWER The law prohibits discriminating against persons with disabilities and applies to employers with 15 or more employees. In general the employment provisions of ADA require (1) equal opportunity in selecting, testing, and hiring qualified applicants with disabilities. (2) Job accommodations for applicants and workers with disabilities (3) and equal opportunities in promotion and benefits. Conditions covered under ADA - CORRECT ANSWER epilepsy paralysis HIV AIDS Substantial hearing or visual impairment Mental retardation specific learning disability Name laws that protect rights of employees - CORRECT ANSWER - David Bacon (prevailing wage) - Walsh-Healy Public contracts Act (min wage reg and ot contracts for federal government) - Service-Contract Act (prevailing wage on contracts to provide services to the federal government) - Wage Garnishment Law (limits the amount that can ve legally garnished and prohibits firing an employee whose pay is garnished for payment of a single debt) - Family and Medical Leave Act ( Workers Comp requirements? - CORRECT ANSWER An employer who has one or more employees must carry workers comp insurance Unemployment requirements? - CORRECT ANSWER Program that provides unemployment benefits top eligible workers who become unemployed through no fault of their own. Required postings by law - CORRECT ANSWER See page 3-11 Basics to include in Company handbook - CORRECT ANSWER - Company history - Compensation guidelines (introductory period, full time requirements etc) - Payroll distribution dates and times - Benefits - Normal working hours - Overtime pay - Vacation time - Sick days - Policy on sexual harassment - Policy on use of illegal drugs - Non discrimination policy - Rules of conduct (disciplinary action for insubordination, fighting, etc) - Safety policies - Equipment and tool policies - Disciplinary actions procedures Ways to motivate employees - CORRECT ANSWER - provide formal and informal opportunities for employees to learn new skills - Empower employees to make decisions and give positive and constructive feedback - provide clear expectations for your employees - Conduct performance reviews on a regular basis - Mentor your employees and tell them about advancement opportunities - Recognize and reward good work What does Workers Compensation provide? - CORRECT ANSWER monetary compensation to employees who are injured or disabled on the job What does At Will Employee mean? - CORRECT ANSWER The employer or the employee may terminate employment at any time without notice or cause. An employer may not terminate employment due to discriminatory reasons, for taking time off to serve on a jury, for reporting health or safety violations What is a lien - CORRECT ANSWER Mechanic's or materialmen's lien "cloud" the title to real property and it can be an effective method for securing payment for labor or materials. Who is entitled to a Mechanics lien? - CORRECT ANSWER States designate lien rights for contractors, subcontractors or material suppliers who provide labor or furnish material for construction, repairs or improvements of any building machine, wharf or bridge. Amount subject to a lien - CORRECT ANSWER Lien may be established up to 15% of the building's value regardless of the amount contracted for labor and materials. Additionally, if work is done on an existing building does not increase the value of the property by 15%, then - OSHA 300 - OSHA 300A - OSHA 301 Reporting fatalities and hospitalizations - CORRECT ANSWER When a work related fatality or incident that requies hospitalization of 3 or more employees occur: - Employers must orally report the fatality or incident to the nearest OSHA Area Office within 8 hrs - If a death occurs within 30 days of the incident, employers must report it within 8 hrs Medical Treatment defined - CORRECT ANSWER Medical treatment means the management and care of a patient to combat a disease or disorder. Includes: visits to physician or licensed health care professional solely for observation or counseling; conduct diagnostic procedures such as x-rays or blood tests; first aid First Aid defined - CORRECT ANSWER The following are considered first aid: - using non prescription medication and non prescription strength - Administering tetanus immunizations (other immunizations like Hep B or rabies are considered medical treatment) - Cleaning, flushing or soaking wounds on the surface of the skin - using bandages, gauze pads, - using cold and hot therapy - Using non rigid means of support such as elastic bands, wraps, - Using temporary immobilization devices while transporting accident victim - Using eye patches - drilling of a fingernail or toenail to relieve pressure - removing foreign objects from eyes - removing splinters by using tweeter, cotton swabs, or other simple means - Using finger guard - Using massages, physical therapy or chiropractic treatments - Drinking fluids to relieve heat stress What is MSDS - CORRECT ANSWER Material Safety Data Sheet and are a OSHA requirement of Hazard Communication Standard What is MSDS For at jobsites - CORRECT ANSWER Employers must keep MSDS on hand for all chemicals used in the workplace. The MSDS provides emergency information in case of contact with the chemical internally or externally. The compliance officer will confirm that all MSDS are at the jobsite Employee rights - Retaliation - CORRECT ANSWER Retaliation is prohibited! Private sector employees who exercise their right under OSHA can be protected against employer reprisal. Employees must notify OSHA within 30 days of the time they learn of the alleged discriminatory action. OSHA penalties - CORRECT ANSWER See pages 5-9 Failur to abate prior violation - Civil penalty of up tp $7000 for each day Programmed and Unprogrammed OSHA Inspections - CORRECT ANSWER Programmed inspections - are perfromed on establishments with high injury rates Unprogrammed inspections - are used in response to fatalities, catastrophes and complaints MD Department of the Enviroment responibilities - CORRECT ANSWER Enforcement of federal and state environmental laws and regulations and for the issuing of permits, licenses and certifications for activities that may affect the environment. The MDE published the MDE guide to environmental permits and approvals that provide guidance on permit applications and approval requirements What is the clean water act - CORRECT ANSWER establishes the basic structure for regulating discharges of pollutants into the waters of the US What are several Evironmental Laws that may affect your construction activities? - CORRECT ANSWER The Clean water act Clean Air Act Endangered species act (ESA) National Environmental Policy Act (NEPA) National Historic Preservation Act (NHPA) What is the required notification under Lead PRE - CORRECT ANSWER Under Lead PRE, federal law requires that contractors provide lead info to residents before renovating pre- 1978 housing. The EPA publishes a pamphlet titled Protect your family from lea din your home, which must be distributed to the owner and occupants before starting work. Confirmation of receipt of the lead pamphlet or a certificate of mailing must be kept for 3 years Sole proprietors and taxes - CORRECT ANSWER Your net income from the business is reported as ordinary income. Sole proprietors do not pay corporate income taxes What are disadvantages of Sole proprietorship - CORRECT ANSWER Unlimited personal liability less available capital Possible difficulty getting long term financing dissolution of business in the even of owners death MHIC does not transfer What are advantages of solo propriertorship - CORRECT ANSWER Minimal legal restriction simple ownership form low startup costs sole ownership of profits freedom in decision making process - limited documentation - No advance IRS filings - No public disclosure finances - Limited liability for managers and members - Ability to delegate management to a non member Tax implications of LLC - CORRECT ANSWER - LLC with one owner is taxes as a sole proprietorship - LLC with more than one member may elect to be taxed as a partnership or corporate entity foreign Limited Liability Companies - CORRECT ANSWER is an LLC registration form with the Dept of Assessment and Taxation, charter division to conduct business in MD What is a joint venture - CORRECT ANSWER special business arrangement that exists when 2 or more companies join to undertake a specific project Naming a business importance - CORRECT ANSWER Selecting a name is important part of forming your business. The name affects your customers first impressions. The individuality of the name affects future trademarks and service marks. How do you register a trade name - CORRECT ANSWER Must be registered with the state department of assessment and taxation, charter division by submitting a trade name application and $25 fee. Expedited service is available List 4 time manamente tips - CORRECT ANSWER - Prioritize daily tasks - delegate effectively as possible - Use T or F - Top management has the strongest influence on employees' ethical behavior. - CORRECT ANSWER True - If top managers demonstrate unethical behavior, employees are likely to do the same T or F - Technology is an essential tool - CORRECT ANSWER True What is all risk builder's insurance? - CORRECT ANSWER is a form of property insurance that covers owners and builders for buildings under construction. This insurance typically covers machinery, equipment, materials, supplies, fixtures that are part of the structure or will become part of the structure. Additional coverage can be added for temp structures like scaffold. In general, major construction defects ,such as poor workmanship ad faulty design are not covered. What is Libility Insurance - CORRECT ANSWER design to protect against 3rd party claims that arise from alleged negligence resulting in bodily injury or property damage. What is Commercial Liability Insurance (CGL) - CORRECT ANSWER CGL insurance offers basic liability coverage. CGL covers four types of injuries, including 1- bodily injury that results in actual physical damage or loss for individuals who are not employees 2- damage or loss to property not belonging to the business 3- personal injury including slander or damage to reputation 4- advertising injury, including charges of negligence that result from promotion of goods an services What is Professional Liability Insurance - CORRECT ANSWER Sometimes called Errors and Omissions, protects contractors from negligence resulting from errors or omissions of designers and architects What is key Man life Insurance - CORRECT ANSWER Available as life insurance, disability insurance or both What is Workers Comp insurance - CORRECT ANSWER Required to be carried by any company that has one or more employees. It is 100% paid by employer and cannot be charged to employee. Social Security - CORRECT ANSWER Social Sec Admin is responsible for paying retirement, disability and survivors benefits to workers and their families. The SSA issues SSN which are required for employees to legally work in US What is a bond? - CORRECT ANSWER A surety bond is a risk transfer mechanism between surety company, the contractor and the property owner. The agreement binds the contractor to comply with the terms and conditions of the contract. if the contractor cannot perform, the surety assumes responsibility. Bond language or requirements - CORRECT ANSWER 1) Total amount required for the bond (varies and can be up to 100% value of contract) 2) Length of the bond 3) Requirement for notice of defect or lack of maintenance (a period of completion of corrections is generally outlined after notice of defect, and it also establishes a time period of response) 4) Bond enforcement (if a contractor fails to successfully complete work or violates any requirement of the bond, enforcement measures are outlined here) Types of Bonds - CORRECT ANSWER - Bid bond (guarantees that the contractor, if awarded the job, will perform at submitted price) - Performance bond (guarantees that the contractor will complete the contract) - Payment bond (guarantees subcontractors and suppliers will be paid for work and material) - maintenance bond (guarantees that for a stated period, typically 1 year, no defective workmanship or material will appear in the completed project) - completion bond (provides assurance to the financial backers of a construction project that it will be completed on time) - fidelity bond (covers business owners for losses due to dishonest acts by their employees) - lien bond (guarantees that liens cannot be places against the owners property by contractors payment of services)