AZ statutes and rules Flashdcards pt 2

38. A general partnership is made up of "A"- 60%, and "B" - 40%. The partnership is committed to $100,000.00 debt. "A" dies. There is no partnership account to recover his debt. How will this debt be handled?

"B" is liable for the entire $100,000.00

118. A contractor bids a job for $10,000 in June. He is awarded the contract and is paid $8,000 to cover expenses also in June. The contractor pays bills of $5000 and $1000 in June. He was paid in May $3000 for another job in $1000 for that was for expenses what is the contractors net income for June using the cash basis of accounting?

$2,000

324. A contractor receives a change order for $2,500.00. The materials will cost him $2,500.00 and his overhead for this change will be $700.00, but he will save $1,000.00 on materials and $280.00 on overhead and have 10% profit on the change order. What will be his cost plus profit?

$2,112.00

87. What is the total maximum civil penalty of multiple violations that an unlicensed person acting as a contractor may receive?

$2,500.00

181. Any corporation with a ______ prior tax year liability is required to make tax payments by the electric funds transfer (EFT) system.

$20,000.00

12. What is the MAXIMUM amount which may be recovered from the contractors recovery fund for any one residential contractors license?

$200,000.00

139. A person was paid ten (10) cents for each $100 of overhead costs and twenty (20) cents for each $100 of gross income. Overhead was $25,000 in gross income was $125,000. How much did the person get paid?

$251 to $300

63. An employee worked, 2-12 hour days, 1-10 hour day in 1-7 hour day in one week. the employees regular wage rate is $6.40 per hour what is the total gross wages do this employee for the work week?

$265.60

125. Two partners invest $10,000.00 each into the general partnership. The company goes out of business with $30,000.00 in liabilities. How much is each partner possible for?

$30,000.00

141. What is the maximum amount that may be awarded to a homeowner who makes a claim against the residential contractors recovery fund?

$30,000.00

158. What is the maximum pay out per injured party of the recovery fund?

$30,000.00

112. The penalty for non-compliance with lead abatement regulations is?

$37,500 per day

115. Given the following information, what is the working capital? Current assets $40,000.00 fixed assets $162,000.00 inventory included in assets $41,000.00 currently liabilities $36,000.00 long-term liabilities $46,000.00 net income for the year $62,000.00

$4,000.00

64. Given: the following are cost items for a contract period of nine months. Assume that there are 30 calendar days per month. Full-time on site superintendent payroll cost $42,000 a year -temporary office trailer rented at $750 a month- rental of 2 temporary toilets $200 each per month- water bill $125 per month- electricity for trailer $250 per month- telephone bills for trailer $75 per month- one time charge of 275 for telephone installation- one time charge of $200 for water meter installation- total cost for the nine month period will be?

$46,375.00

279. The registrar has issued a directive to correct ten deficiencies on a project. The contractor has refused to make the corrections. What is the total civil penalty amount?

$5,000.00

277. OSHA cites a contractor for willful violation. If the contractor doesn't correct the issues, what is the minimum fine that OSHA can levy?

$5,000.00 per violation

189. The annual cost for workers compensation for a company who has $45,000.00 in office staff at $1.50 per $1000.00 and $212,000.00 in field staff at $2.50 per $100.00 would be _____.

$5,367.50

256. A license that has been suspended for failure to renew may be reactivated or renewed within one year of suspension by filing the required application and payment of the application fee and a late fee of:

$50.00

160. Any licensed contractor, licensed subcontractor or material supplier who files a complaint with the registrar of contractors under section ARS 32-1129.02 shall be required to post a surety bond or cash deposit of ______.

$500.00

86. The failure of a contractor to notify blue steak prior to excavation may liable him responsible for damages and subject to how much of a fine?

$5000.00

54. A construction companies balance sheet shows the following information. Cash $24,000 accounts receivable $56,000 equipment $18,000 vehicles $30,000 accounts payable $44,000 notes payable $16,000 accrued wages $9000 what is the net worth of the company?

$59,000

169. An owner offers a contractor a contract to remodel a building. The contract is for $12,000.00. You estimate your cost on this project are $1000.00 for equipment, $3,000.00 for labor and $6,000.00 for materials. You have 20% overhead on direct labor and 10% overhead on labor and material and 10% of all costs for profit. If you accept this contract you will have a _______.

$650.00 loss

47. An employer has a history of repeatedly violating the Arizona occupational safety and health act, what maximum penalty may be accessed for the employers next offense?

$70,000.00

232. According to IRS rules and regulations the accrued federal unemployment taxes (FUTA) must be paid by the employer a fixed percentage on the first ______ earned per employee.

$7000.00

29. A company's balance sheet shows assets of $20,000 and owners equity of $12,000, the company's liabilities are:

$8,000

134. A contractor is doing a cost plus contract for $100,000. He is to get 40% over the direct costs. If he can do the job for under $100,000.00, he gets 10% of the savings. He also will get $500.00 a day if he finishes the job early. If his direct cost equals $60,000.00 and he finishes 5 days early, how much does the contractor get paid?

$85,000.00 - $90,000.00

322. A contractor bids a job for $15,000 in June. He is awarded the contract and is paid $8,000 to cover expenses also in June. the contractor pays bills of $5000 and $1000 in June. He was paid in may $3,000 for another job and $1,000 of that was for expenses. Using the accrual method, what is the contractors net income for June?

$9,000

312. What is the contractors license bond amount required for a residential general contractor whose gross annual volume of work is valued between $150,000 and $750,000?

$9000.00

299. When submitting payroll taxes, which of the following is required?

Completed W-4's for every employee on the payroll

53. A business pays taxes on its profits and the owners pay additional income taxes on dividends they received, what type of business is this?

Cooperation

248. When a corporation is doing business in the name of a division or using a trade name, what has to appear on the license?

Corporation name and division name or trade name (all names)

122. If an allowance is exceeded, what should the contractor do?

Create a change order

155. Which is the equation used to determine working capital?

Current assets - current liabilities

165. If you have a note on a truck that is due to be paid off within the year, this is an example of?

Current liability

167. And employee complete a W-4 form claim in a tax withholding exemption. The form must be completed by what date you?

February 15

20. Each year the employer must file the annual report from A1-R and include all wage and withholding statements with the State of Arizona the due date of:

February 28th

152. Two people are in business together and each owns 50 percent of ABC Homes, Inc. Which of the following is required?

File articles with the Corporation commission.

119. What form is used to pay federal unemployment tax ACT(FUTA) taxes?

Form 940

130. Asbestos that can be easily crushed into a fine dust by hand is called:

Friable

52. What does the EPA not consider to be a major source of outdoor air pollution created by construction operations?

Fumes from adhesives

75. What contract document spells the specific rights, duties and responsibilities of the owner, contractor and architect?

General conditions

2. Who is responsible for the overall construction of a project?

General contractor

88. Where would depreciation of fixed assets be recorded in the accounting process?

General journals

25. Transactions recorded in the cash receipts journal's are summarized and posted to the:

General ledger

269. The holder of a license shall not commit: failure by licensee or agent or official of a licensee to pay moneys ______ when do for materials or services rendered in connection with the licensees operations as a contractor when the licensee has the capacity to pay.

In excess of $750.00

65. What document shows the amount of revenue from all jobs?

Income statement.

76. Which of the following statements CORRECTLY describes the cash method of accounting?

Income/expenses are recorded at the time they are received/paid.

77. Which type of contractor license does Arizona not issue?

Industrial

162. How does the law rule on ambiguous provisions in a contract?

Interpretations will go against the party who wrote it.

225. An owner pays the contractor a day late and then the contractor abandons the project. The contractor______.

Is in Material Breach of Contract.

170. A company's current assets are $68,000.00 in long-term assets are $162,000, it's current liabilities are $54,000 and long term liabilities are $72,000. This company _____.

Is set to withstand a slow period

186. OSHA shows up and finds a violation. What can OSHA do?

Issue a citation

85. What happens to a sole proprietor ship if the owner dies?

It is terminated immediately.

293. What will happen to the license if a soul proprietor dies?

It will automatically be canceled

304. What is the latest date, employers can report the annual federal unemployment tax return on the form 940?

January 31

108. W-2s must be furnished to all employees before

January 31st

145. Lead abatement is which of the following?

Job is complete and lead is permanently eliminated.

151. What type of insurance is considered to be an important part of the risk management program of a corporation in the case of the death of the president of the company.

Key Man

58. If no final inspection or written acceptances are made, then completion of a structure is when:

Last date labor, materials, fixtures or tools were furnished to the property.

74. When uncertain about what type of entity is best for a company, seek advice from:

Legal counselor

171. When a company is using a lower profit margin/bidding too low, they can expect _______.

Less cushion for errors

323. When applying or renewing a contractors license, all of the following are required except:

License suspended or revoked within the last 3 years

98. Which type of business organization is taxed like a partnership, yet offers all the advantages of a corporation?

Limited liability company

73. Which of the following individuals has no managerial decision making power, and has liability restricted to the amount of investment?

Limited partners

161. According to OSHA, and employer shall maintain certification training for employees who may be exposed to fall hazards. All of the following must be included on the certificate accept?

Location of the training

176. What is the advantage of having low inventory?

Lowers labor costs

104. What contract provides the owner with the total cost of the project IN ADVANCE?

Lump sum

11. Which type of construction contract binds the contractor to do a stipulated job in return for a fixed sum of money?

Lump sum contract

224. Which of the following is responsible for creating Safety Data Sheets?

Manufacturer

281. The biggest advantage of using the percentage of completion method for long-term (greater than one year or does not finish in the same year as started) contract is that it does a better job of:

Matching revenue to the expenses incurred related to that revenue.

15. You are a contractor beginning a project on May 1, a pre-lien should be sent before?

May 21st

273. A person who is, or was at the time of the act or omission, named on a license that has been suspended because of a payout from the fund _____.

May not receive a new license or retain another existing license

68. What does the contractors liability insurance cover?

Members of the public

261. A written contract between a contractor and an owner must have the registrar's phone number and website address if the contract amount is:

More than $1,000

236. Arizona has reciprocity agreements with California, Nevada and Utah for contractor licensing if all of the following conditions are met except:

NO complaint or judgment in the last 2 years.

103. Which of the following is not an integral part of a contract?

Negotiation

127. You are purchasing an insurance policy with a monthly premium of $300.00. If you implement a safety program you can save 10 percent on the cost of the policy. The safety program cost $400.00 to start and $15.00 a month maintain it. What would be the net difference in cost over three year period with the safety program?

Net saving of $140.00

308. When is a contractor responsible for owner-maintenance items?

Never

262. What portion of the workers' compensation insurance premium can an employer deduct from an employee's wages?

No deduction allowed

154. A company paid it's federal unemployment tax, FUTA on the 21st of the month following the quarters end, what percent is used to calculate the penalty?

No penalty because of the 30 day grace period

69. How soon must a subcontractor file a claim against a performance or payment bond?

No sooner than 90 days

318. After a license expires, how many days extension do you have to finish the job?

None

252. A contractor that is convicted of a fraudulent act of abetting a unlicensed person, a first offense shall be fined by the registrar a minimum of:

Not less than $1,000.00

253. What civil penalty amount may be imposed by the registrar for not paying your taxes

Not to exceed $500

142. A contractor has a liability insurance policy with $1000 deductible. There is a job related accident resulting in $3,000 damage to equipment, $3,000 damage to job site structures, $3,000 damage to construction materials, $5,000 in injury to employed personnel, and $1,000 in injuries to non-employed persons. How much is the insurance company liable for?

Nothing

180. A contractor has a liability insurance policy with $1000 deductible. There is a job related accident resulting in $3,000 damage to equipment, $3,000 damage to jobsite structures, $3,000 damage to construction materials, $5,000 in injuries to employed personnel, and $1,000 in injuries to non-employed persons. How much is due the employed person from the liability insurance policy?

Nothing

264. If a subcontractor finds an in adequate or defective substrate prior to installation of tile what should he do?

Notify the general contractor and or the owner in writing

309. When is a contractor required to enter into a written contract?

On projects between $2500 and $125,000

240. What is a dual license?

One license for both commercial and residential

280. Under which of the following conditions may a specialty contractor accept and performe a contract requiring work outside the scope of his license?

Only when the unlicensed work is incidental and supplemental to the work he is licensed to perform

228. According to OSHA, what type of evacuation plan is needed for an employer with 10 or fewer employees?

Oral

185. What is the minimum amount of taxes owed the State of Arizona before a corporation is required to make estimated tax payments?

Over 1000 dollars

137. The penalty for not completing a project on time was $500 per day. The project was five days late due to 10 days of rain. No action was taken by the contractor to change the due date. What is the cost of the penalty for not completing the project on time?

Owes $2500

97. What is the advantage of being a sole proprietor?

Owner makes all the decisions

230. Which of the following is required to be licensed?

Owner/builder who builds or improves structures that are intended for sale or rent with in one year

254. Who is ultimately responsible for the people working under the licensee?

Owners

321. Which of the following materials is not likely to have contained asbestos in the past?

Paint

27. Giving: A contractor has obtain a contractors license in the name of Pat Brown. Under what name can his contracting business be conducted?

Pat Brown

100. Given: liens cannot be filed against public property. What type of bond may be purchased to protect subcontractors, vendors and workers seeking to get paid for the work and materials used on a public property project?

Payment bond

184. What is the definition of liquidated damages?

Penalties for delay of project.

290. The powers and duties of the registrar include all of the following except which?

Perform field inspections

205. Who is responsible for the safety of the entire project or job site?

Prime contractor

34. What are periodic payments or cost reimbursement, made by the owner to a contractor, during a long construction period called?

Progress payments

231. What is business interruption insurance designed to do?

Project contractors from lost earnings due to delays in construction because of covered perils

326. Who is responsible for supervision of day-to-day activities on the job?

Project/site Superintendent

276. When renewing a contractor license, what information is required?

Proof of compliance with workers compensation insurance

234. Which of the following does not need to be licensed?

Public utilities operating under the regulation of the Corporation commission

257. All of the following can change a name on a contractors license except:

Qualifying party

300. A resident may receive an award from the residential contractors recovery fund from all of the following except which?

Receives an administrative judgment and does not file a claim with supporting documents

172. When a company is using a higher profit margin think usually they can expect _______.

Receiving fewer jobs

246. Which one of the following is not a handyman exemption?

Required to have liability insurance

259. Which of the following is not an appurtenance?

Residential structure

214. What does the "R" at the end of the designation R-37R license scope mean?

Restricted

56. What must accompany all hazardous chemicals to describe contents of hazards, precautions and emergency procedures?

Safety data sheets

42. Which one of the following would be considered project overhead?

Salaries of supervisors

50. A schedule showing dependencies will help primarily in:

Showing which tasks need completion.

177. If a contractor performs the work according to specifications of the project and is responsible for the cost of all material and labor to obtain project completion, it is called _______.

Single prime contracting method

215. What type of building as a residential contractor allowed to build or remodel?

Single story club house with 3 rooms owned by a residential community

48. Which of the following may an employer deduct from the wages of its employees?

Social Security and Medicare

249. Which of the following can request the cancellation of the license of a sole proprietorship?

Sole proprietor

19. Which of the following is considered a form of business organization?

Sole proprietorship

209. What business type pays the owner as individual income?

Sole proprietorship

95. Which one of the following is the simplest form of business to set up but the owner carries always?

Sole proprietorship

96. An entity whose owner is liable for all debts.

Sole proprietorship

159. If you are estimating by the square foot, what is this called?

Square foot method

30. Which one of the following types of financial statements examines the cash generating and distribution activities of a construction company?

Statement of cash flow

210. Who can cancel a bond?

Surety bond company

153. Which one of the following would not be included on a profit and loss statement?

Taxes owed

295. When is the transaction privilege tax (TPT) due?

The 20th of each month

220. Which of the following could require a corporation or LLC to apply for a new contractors license?

The company formed a new company to do the contracting under

296. A contractor has a general liability policy with a $500 deductible. The contractor purposely disregards building code and workmanship standards, resulting in $1000 in damages to the owner. Who is responsible?

The contractor for $500, and then insurance company for $500.

126. When a contractor purchases a property insurance policy, it covers losses to business and property of:

The contractor only

244. Who should respond to the registrar of contractors in the case of a service or citation and complaint of an act that is cause for suspension or revocation of a license?

The licensee

288. Surety bonds or cash deposits must be in whose name?

The licensee

211. If a contractors license is revoked and a home owner calls the contractor back to do warranty work, what can the contractor do?

The licensee may perform, without compensation, warranty work or other corrective work.

260. Who shall rule on a scope of work that may be done under the dual license?

The registrar

84. What will happen if a licensee fails to comply with the requirements governing Social Security, Worker's Compensation or unemployment compensation?

The registrar maybe revoke the license and impose a civil penalty of $500

305. Which of the following must be stated on the contract?

The right to file a grievance/violation with the registrar

301. If a qualifying party is listed on 2 licenses for different companies and one company's license is revoked, which action can the registrar of contractors take against the other license?

The second license can be suspended or revoked

51. Why are oral subcontracts difficult to enforce?

The specifics of an oral contract may be difficult to prove

7. When a big bond is required with a contractor is bid, it is intended to guarantee that:

The successful bidder will enter into a contract with the owner for the amount of the bid.

217. The owner moved into a house and some of the appliances do not operate correctly, what does he do?

They are covered by manufacturer's warranty.

131. When remodeling a house that is built prior to 1978 we are required to give the owner a lead template and have them sign that they received the notice. How long does he keep this record?

Three years

263. What is IRS form 941 used for?

To file quarterly employer's tax return

140. Why do you need to have changes in writing?

To protect yourself

106. The amount of leeway allowed in starting and completing an activity without delaying the project completion date is?

Total float time.

17. What form is used to report and pay quarterly unemployment tax to the Arizona Department of economic security?

Unemployment tax and wage report (UC-018)

223. Which of the following does NOT need a contractors license number on it?

Uniforms and free things

251. Under a ADEQ general permit, persons performing activities that disturb less than 1 acre are not required to seek coverage under the permit for construction projects:

Unless part of a larger common plan of development or sale

320. What can you do to reduce the risk of EPA fines?

Use water to control dust

255. What does an injured homeowner have to recover against any residential contractor in order to get paid from the recovery fund?

Valid judgment

271. A construction contract or an Architect-Engineer Professional Service Contract that purport to imdemnify, to hold harmless for liability for loss or damage is _______.

Void

284. In the state of Arizona a clause in a construction contract to hold a contractor harmless is:

Void.

221. What is the penalty or what will happen to a contractor after the bid is excepted and the contractor refuses to do the job?

Will void the contract and end in litigation

200. After a contractor receives a contract and starts work and discovers a hazardous situation, how long do you have to report it to the owner?

Within a reasonable period of time

92. The total current assets minus the total current liabilities equals the net:

Working capital.

212. Is a contractor allowed to hold two licenses for the same craft or trade?

Yes, as long as there is common ownership of 25% or more between the two companies.

213. When there is a judgment against a license, who is responsible for taking care of the judgment?

contractor or licensee

174. What is the minimum size of land that is ADEQ regulations would come into affect?

1 acre

144. A license was not renewed because of nonpayment. How many days before the license will be suspended?

1 day

235. A person who has been convicted of contracting without a license is not eligible to obtain a contractors license within ______ after the date of the last conviction.

1 year

313. A contractor is responsible for interior and exterior caulking (excluding roofing sealant) for ______.

1 year

129. When materials containing more than ____ asbestos are encountered on a job site, Work must stop until the remediation of that as Bezos has been completed.

1%

183. A corporation must make estimated tax payments if it's Arizona income tax liability for the year is at least _____ dollars.

1,000

110. Medicare taxes are what percent of an employee's wages?

1.45%

274. A person has paid a down payment to a licensed contractor but no work has been done and no materials delivered. The registrar may award a payment from the recovery fund in the amount of the deposit plus interest at the rate of what percent?

10

71. Registration of a trademark is effective for how many years?

10

314. Outside of city limits, what is the maximum parcel size that a lien shall extend to?

10 acres

182. A job is supposed to start on the 1st which is a Monday. Materials arrive on Tuesday the 2nd. The crew begins work on Monday the eighth. The job must be completed by the 29th. No overtime, weekend or holidays are considered. It takes 10 days to complete the job. What is the total float time?

10 days

219. How long does an owner have to notify a contractor of defective work (Manufactured surfaces)?

10 days

283. How many days does an owner have to furnish the name of the lender on a project to a contractor that intends to file or has filed a preliminary twenty day notice on the project?

10 days

57. If a contractor is notified by an owner that a lien has been filed, within what time frame must the contractor resolve the issue to prevent payment delay

10 days

8. A complaint has been filed against an Arizona contractor. After investigation, the registrar issues a citation and this is served on the contractor. How long does the contractor have to file a written answer to the complaint with the registrar?

10 days

83. A complaint has been filed against in Arizona contractor. After investigation, the registrar issues a citation and this is served on the contractor. Failure of the licensee to answer within _____ after service shall be deemed an admission by the licensee of the acts charged in the complaint and the registrar may then suspend or revoke the licensee's license.

10 days

216. Homeowner buys a house and notices a scratch on the granite countertop, the homeowner has ______.

10 days to notify the contractor of the defect.

43. An Arizona residential contractors license was suspended because a payment from the contractors recovery fund was made on a claim against the licensee. To reactivate the suspended license the contractor must reimburse the fund for the total amount paid plus _______ interest?

10 percent

190. What is the penalty rate for federal tax deposits that are 30 days late?

10%

5. How are workers compensation premiums paid?

100% by the employer

306. Employers with _______ or more employees are subject to OSHA recordkeeping of all illnesses and injuries.

11

81. A job is scheduled to be completed in 3 weeks. The work force consist of 10 employees working 5, 8 hour days per work week with no overtime. Under a revised schedule how many hours per day must employees work in order to complete the job in 2 weeks?

12 hours

35. When may a contractor reapply for a contractors license after revocation?

12 months

93. A license was suspended for filler to renew by the registrar of contractors. The license may be reactivated and renewed by filing an application and paying required fees within:

12 months.

226. How many weeks can an employee that qualifies under the FMLA be gone without pay without losing their position?

12 weeks

37. When reserving a trade name, a corporate name may be reserved prior to incorporation for how many days?

120 days

39. A contractor has a contract with an owner, and a notice of completion (form ML-9) was not filed. How long does this contractor have to file a lien?

120 days from the completion of the structure

133. If a contractor send an invoice to an owner and the owner does not reject it within _____ it is the same as accepting the invoice.

14 days

61. How is a work week defined in the fair labor standards act?

168 hours during 7 consecutive 24 hour periods

3. A formal complaint which has been confirmed by an agency inspector will remain on the contractor's public record for how many years?

2

41. Contractor license is in Arizona are issued for how many years?

2 years

265. The Arizona workmanship standards cover ______.

2 years of workmanship and 2 years of material

146. Accurate and prompt deposit are required for your federal tax liability, if you are late by 1 to 5 days what is the penalty?

2%

287. Given the following information, what is the contractors quick ratio? (Total assets)? Current assets: $80,000 fixed assets: $112,000 inventory included in current assets: $12,000 currently abilities: $30,000 fix liabilities: $86,000 net profit $57,000

2.27

120. A preliminary notice should be filed by a contractor within how many days after the commencement of the project?

20

178. A lien is placed on a property, and it was paid to the property can be sold. How many days does the lien holder have to remove it?

20 days

294. A contractor does not file a preliminary 20 day notice and delivers material to the job site. How long does the contractor have to file a notice?

20 days

241. Only one preliminary notice is needed unless the value of materials furnished exceeds by ______ or more than the total price in any prior original or subsequent preliminary notice for a project.

20 percent

24. When is the due date of an Arizona sales tax return?

20th day of the following month

46. After the termination of a contractors license, how long must the license bond stay in place?

24 months

18. A person may act as a qualifying party for two companies at the same time if one of the companies is a subsidiary of the other company, if there is a minimum common ownership of:

25 percent

233. Approved articles of incorporation must be published in the local news paper in the county of the place of business for:

3 consecutive publications.

109. And I-9 form must be completed with required documentation within _______ after employees hired?

3 days

157. A subcontractor may suspend performance if the owner fails to make timely payments, the subcontractor shall provide written notice to the owner and contractor at least _____ before walking off the job.

3 days

62. How long must an employer display an annual summary of work related injuries?

3 months

117. Employers must verify employment eligibility of anyone they hire. This is done by using a form I-9. What is the minimum length of time an employer must retain form I-9?

3 years after date of hire

270. A corporate surety must give a minimum of how many days advance notice to the principle and the registrar prior to cancellation of a bond?

30

31. In Arizona a contractor must report a change of business address to the registrar of contractors within how many days?

30

250. When an application for licensure is found to have deficiencies and the registrar has sent out a request for the deficiencies, the applicant shall submit the deficiencies or request an extension of time within ______ of the mailing of the notice of deficiencies.

30 days

275. A licensed contractor files a complaint with the registrar for nonpayment of services that is without merit. The surety bond or cash deposit shall be conditioned on and provide for payment on the presentation of a certified copy of the order of the registrar and a certification by the complainant of non-payment within ________ after the order becomes final.

30 days

1. Which of the following conditions indicates the completion of a permitted structure?

30 days have passed since the final inspection and written acceptance of the project.

247. A homeowner (claimant) when making a claim for money damages resulting from termites, shall give written notice to the contractor at the contractors last known address, specifying in reasonable detail the facts that are the subject of the complaint at least:

30 days prior to filing a suit

315. After filing SWPPP and completed NOI, how long must an operator wait before discharging within 1/4 mile of impaired waters?

32 days

267. And owner has seven days to start progress payments to the contractor. What Arizona statute covers this?

32-1129.01

268. Preliminary notices are covered under what Arizona revised statute?

33-992.01

201. What is the maximum number of apartment units in a building that a residential contractor can build or remodel?

4 units

82. A contractor has a project that requires 96 man hours to complete. It must be done and only three days. If 8 hour days are worked what will be the minimum crew size required?

4 workers

91. How many years are you required to keep copies of your tax records?

4 years

245. How many years experience do you need in the trade for the license you are applying for?

4 years practical or management experience at least 2 of which are in the last 10 years

227. A non exempt employee works 40 hours in a week, and also receives 8 hours of holiday pay, how is the time paid out?

48 hours of straight time

44. For how many years may a contractors license initially be inactivated?

5

148. A job is supposed to start on the 1st which is a Monday. Materials arrive on Tuesday the 2nd The crew begins work on Monday the eighth. The job must be completed by the 29th. No overtime, weekends or holidays are considered. It takes 10 days to complete the job. What is the flight time?

5 days

14. Contractors may request the registrar to inactivate their current license for a period not to exceed :

5 years

291. The OSHA form 301, injury and illness incident report, must be kept by the employer for a minimum of _______.

5 years

147. Accurate and prompt deposit required for your federal tax liability, if you are late by 6 to 15 days what is the penalty?

5%

124. The general contractor was paid for the previous months work from Oct. 1st to Oct. 30th. How long does the contractor have to pay his subcontractors?

6 days

128. When working at maximum height of _____ or more with no leading edge protection, personnel are required to be tied off or have fall protection.

6 feet

207. The Arizona Mechanics Lien Law states that after a lien is filed, a lawsuit must be brought to foreclose on the lien within how many months?

6 months

22. If new information becomes available about the hazardous chemical, within what time period must labels be revised?

6 months

266. How long will a lien stay in place if no lawsuit is filed?

6 months

49. A lawsuit to foreclose on a lien must be filed within what length of time after the lien is filed? Or an ALTERNATE: after a lien is filed, within what length of time must a lawsuit be filed to foreclose on that lien?

6 months

286. Which of the following types of apartments can a residential contractor build or remodel?

6 story 3 dwelling

66. Given: the contractor must complete the footings and foundation of a commercial building within eight weeks or the project will be delayed. The task will take 2 weeks to complete. The total length of the project is 10 months. What is the total float time of this task.

6 weeks

238. What percentage is an employer responsible to pay for Social Security tax only?

6.2%

23. Which of the following conditions indicates the completion of a permitted structure?

60 consecutive days have passed since the last work was performed

173. After you have filed articles of incorporation with the Arizona Corporation commission ACC how much time do you have to publish your articles?

60 days

59. According to the Arizona registrar of contractors statutes, when a Qualifying party disassociate himself from a license the licensee shall have _____ days to qualify through another person.

60 days

89. If a ML-9 (notice of completion) has been filed, how long do you have to file a lien?

60 days

9. The maximum amount that can be assessed biennially against the contractor for the required contribution to the residential contractors recovery fund is:

600 dollars

188. Progress payments have been approved and made by the owner to the general contractor, but the general contractor has failed to pay the subcontractor. How many days notice must the subcontractor give the general contractor and the owner before the subcontractor's intended suspension of work?

7

105. Given: A prime contractor has received a periodic payment on a contract. Subcontractors have submitted invoices for the work they have performed for the prime contractor. Within how many days after receipt of the periodic payment must the prime contractor pay the subcontractors?

7 days

202. An invoice has been submitted to the owner and is not disputed. How many days does the owner have to pay the contractor?

7 days

319. After filing SWPPP and completed NOI, how long must an operator wait before discharging stormwater from a construction project?

7 days

121. The owner is paying the general contractor his progress payments on time but his subcontractor has not received his progress payments. How long does the subcontractor have to notify the owner that he has not received his payment?

7 days before suspension of services

99. What percentage of an employees gross pay for Social Security and Medicare taxes is an employer required to pay?

7.65%

150. All soil disturbing activities at the site have been completed in a uniform perennial vegetative cover with a density of at least ______ of the native background vegetative cover for the area has been established on all unpaved areas and areas not covered by permanent structures.

70%

111. If an employee is killed on the job, OSHA must be notified within ____ hours.

8

325. If an accidental work related death occurs, a contractor must notify OSHA with then ______.

8 hours

258. A contractor hires a subcontractor knowing that the subcontractor is not license to perform the work. What may the registrar impose upon the contractor?

A civil penalty of less than $500.00

282. A person performing construction activity on a small project may be exempt from obtaining coverage under a general permit from the ADEQ based on _______ for the duration of the project.

A low potential for soil erosion

285. A contractor that has more than two offenses of Arizona statutes 32-1164 shall be fined:

A minimum of $2000.00

4. A project owner, in order to ensure that a contractor will build a project according to the specifications, will require a contractor to furnish:

A performance bond

298. Which of the following is NOT a licensee?

A sole proprietor

21. The air quality division that administers the air quality permits program is?

ADEQ

218. Which of the following Arizona Statutes would you find the minimum elements of a contract?

ARS 32-1158

166. Which accounting method records income when it is earned?

Accrual method

116. Which of the following is a benefit of a job cost recording system?

Accurate estimating.

90. What are modifications to contract documents called when they are issued before the date bids are accepted ?

Addenda

101. What is used to issue changes corrections or additions to competitive bidding document issued before bid opening?

Addendum

243. A licensee may make written application to the registrar for exemption from a qualifying party. The applicant shall show to the satisfaction of the registrar during the past five years:

All of the above

289. For which of the following reasons could the registrar refused to renew a license?

All of the above

239. A contractor license issued to any member of the Arizona National Guard or the United States Armed Forces reserves shall not expire while the member is an active general duty and ______.

All the above

107. On a commercial project, who typically certifies to the owner that progress payments requests are accurate and should be paid?

Architect or engineer

28. Who is responsible for certifying the amount of work completed on a project to the owner?

Architect/engineer

6. Contractors pay Arizona state sales tax to the:

Arizona department of revenue

10. Given: when the registrar of contractors issues a citation to a licensee, the citation is sent by certified mail to the licensee at the latest address of record. When is the service of the citation complete?

At the time of personal service or five days after deposited in the mail

303. How is the required dollar amount of a surety bond calculated?

Based on estimated annual volume of work and license classification

168. According to the registrar of contractors statutes when a qualifying party disassociate himself from the licensee, what action must be taken

Both parties must notify the agency within 15 days

102. A contractor is about to start a project and plans include manufacturers specifications. Local code also covers the construction requirements. What should the contractor do?

Build to manufacture specs. And local code.

79. What type of insurance is most widely used to protect construction property?

Builder's risk

237. What will happen in the instance of workmanship standards conflicts?

Building codes will prevail over workmanship standards.

222. Which of the following business entities continue to exist even if one or more shareholders die?

C corporation

26. Which of the following is an advantage of the sole ownership form of business?

Can be sold or altered at will

156. Which of the following is not an income statement?

Cash

116. When scheduling a project what is the best method to make sure there's enough working capital to complete a project?

Cash flow

206. What is the best way to keep track of ongoing cost for a project?

Cash flow

310. Which of the following must be filed when registering an Arizona limited partnership?

Certificate of limited partnership

60. A contractor is performing land clearing operations on a 1 acre homesite. What environmental preservation act regulates this activity?

Clearwater act phase II

32. A person wants to file a notice and claim of Mechanic's, Materialman's or Professional Services Lien, form ML-10. Where would this person find the information needed to complete the legal description section?

the title company

45. If you incorporate in ARIZONA, which type of form do you do use to incorporate?

Domestic

33. What document contains the actual physical descriptions of the project to be constructed?

Drawings

316. The Miller Act requires contractors to provide performance and payment bond on public work projects. What is the minimum contract amount to which Miller Act requirements apply?

$100,000

135. What is the maximum first time civil penalty that can be levied against a contractor that does not have workers compensation insurance on his workers?

$1000

138. And employee makes $12.00 per hour. One week he works 30 hours in the next week he works 50 hours to make up for the previous week what is his compensation for the two week period?

$1000 to $1050

132. What is the penalty for making an offer on a contract while your license is expired?

$1000.00

80. And employee can complete 160 units of work in one hour. The average labor cost is $40 per hour. What is the rate per unit?

$0.25 per unit

179. A contractor has a liability insurance policy with $1000 deductible. There is a job related accident resulting in $3000 damage to equipment, $3000 damage to jobsite structures, $3000 damage to construction materials, $5000 in injuries to my employee personnel, and $1000 in injuries to non-employed persons. How much is due to the non-employed person from insurance?

$1,000.00

143. How many total employees will require the employee to pay unemployment (FUTA) taxes?

1

278. According to the fair labor standards act (FLSA).how many employees are needed before you must comply with this act?

1

136. How many days does a contractor have after receiving notice for non-compliance from the Worker's Compensation division to request a hearing?

15 days

67. How many days do you have to notify the registrar of contractors when a qualifying party (QP) disassociates from a license?

15 days

123. How long after exposure to asbestos can it take for the symptoms of the disease to become evident?

15 to 40 years

149. A Corporation's Arizona State tax return (form 120 or 120-S) is due on the _____ following the close of the corporations tax year?

15th day of the 4th month

78. Comprehensive general liability insurance will cover all of the following except:

A contractors vehicles and employees

292. Which of the following is not covered under the handyman exemption?

A licensed contractor performing work under $1000 working outside of the scope of the license.

302. After 2008, which of the following is not required on a contract over 1000 dollars?

A list of all sub-contractors

229. If you have 8 (10 or less) employees and you move to a new location which of the following is required?

An orally described escape plan

307. Who is responsible for repayment of a claim against the recovery fund?

Any person named on the license at the time of the violation

311. How would an LLC with a single owner be taxed?

As a sole proprietorship

114. The basic balance equation is:

Assets = liabilities + owners equity.

72. In Arizona it is a common practice to register a trade or business name and this is known as?

DBA

187. When the contractor designs and builds a project it is known as what type of contracting method?

Design build

175. Which one of the following is exempt from the ADEQ under a general permit?

Disturbing the soil on less than 1 acre

327. What is important to have in place when terminating an at-will employee?

Documentation of poor performance

163. Who determines what safety equipment is used on the job?

Employer

164. Who ensures a safe and healthy work environment?

Employer

204. According to OSHA who is responsible to provide training on and supply employee's with Material Safety Data Sheets (MSDS)?

Employer

242. Which of the following methods is used to reduce risk?

Ensure subcontractors have insurance

16. When clearing a 1 acre site for building a home, what agency do you deal with?

Environmental protection agency

208. Which of the following can be used to create or track a budget for a project?

Estimate

203. A person that is the vice-president of the company and his duties also include project management and communication with superintendents and other employees is considered:

Exempt from overtime

317. What is required to change the name on a license?

Get a bond rider that reflects the name change

113. If you are going to replace a 4 foot by 8 foot area of sheetrock in a house built before 1978, what must you do?

Give the homeowner an EPA handout on lead paint

272. The SWPPP (Stormwater pollution prevention plan) shall be prepared and implemented in accordance with good engineering practices and shall do all of the following except _______.

Hire a guard for controlling water flow

297. A licensed contractor is responsible for all of the following EXCEPT which?

Hire an outside inspector or engineer in jurisdictions that have not adopted building codes

13. What form must an employer have new employees complete in order to verify employment eligibility under the immigration Reform and control act?

I-9

40. When must a contractor inform the registrar of a change in ownership?

Immediately

55. How soon after a pay out from the residential contractors recovery fund is the contractors license suspended?

Immediately

94. What is the most important reason to have a daily log on the job site?

In case any disputes arise.

70. In a limited partnership, the decisions are made by:

The General partners.

36. A contracting company is evaluating its ability to complete a project in a timely and efficient manner. Before bidding on the project the company should consider all of the following factors EXCEPT:

The appropriate accounting basis and methods