Law
Public Works contractors shall provide two good sufficient surety bonds! What types of bonds are they?
"Payment Bond" for 100% of contract price & "Faithful performance bond" for 100% of price - A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid. They are required in contracts over $35,000 with the Federal Government and must be 100% of the contract value. They are often required in conjunction with performance bonds. A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. The term is also used to denote a collateral deposit of good faith money, intended to secure a futures contract, commonly known as margin.
What is the maximum monetary judgment in a Small Claims Court?
$10,000 - $10,000 (effective January 1, 2012), except that a plaintiff may not file a claim over $2,500 more than twice a year. Limit for local public entity or for businesses is $5,000. $6,500 is the limit in suits by an individual against a guarantor that charges for its guarantor or surety services. Be sure to read the question as other amounts are effective depending on how the question is asked. For Contractors the correct answer would be $10,000.
Of the following, which document is signed first in a transaction involving a home improvement contract?
'Mechanics Lien Warning' - Beginning in 2006, the "Mechanics Lien Warning" replaced the previously used "Notice to Owner." This notice describes, in non-technical language, pertinent provisions of the state's mechanics lien laws that specify the rights and responsibilities of both the property owner and the contractor. The Mechanics Lien Warning must be part of any home improvement contract, including swimming pool contracts. This notice is not required for a contract that meets the service and repair contract requirements.
"Asbestos-containing construction material" means manufactured construction material which contains more than __ % asbestos by weight:
0.1 - More than one-tenth of one percent (0.1%) asbestos by weight (T* CCR §341.6) Asbestos is regulated federally at >1.0 percent asbestos containing material and by the State of California at >0.1 percent asbestos-containing construction material. Federal and State regulations are enforced by the following agencies: Environmental Protection Agency (EPA) • California Air Resources Board (CARB) • Department of Toxic Substance Control (DTSC) • Local Air Districts (APCD/AQMD) Occupational Safety and Health Regulations (OSHA) • Cal/OSHA — Division of Occupational Safety and Health (DOSH)
Overtime pay is calculated based on:
1.5 times base pay - Time and a half. For an example: 20 dollars an hour plus 10 dollars an hour equals thirty dollars.
After a state of emergency is declared, it is illegal for any contractor to sell or offer to sell his services for a price of more than ___% above his cost and normal percentage of profit.
10 - California's anti-price gouging statute, Penal Code Section 396, prohibits raising the price of many consumer goods and services by more than 10% after an emergency has been declared.
How much asbestos can a General Building contractor remove without notification?
100 sq ft. - You must notify DOSH before distrubing 100 sq ft or more of construction materials containing 1/10 of 1% of asbestos.
Current liabilities are generally of what duration?
12 months - Current liabilities are debts that are due to be paid within one year or the operating cycle, whichever is longer. Further, such obligations will typically involve the use of current assets, the creation of another current liability, or the providing of some service.
The New Employee Form: DE 34 New Hire Employee. Employer must report to the Employment Development Department (EDD), within how many days?
20 days - Federal law requires all employers to report all newly hired employees, who work in California, to the EDD within 20 days of their start-date-of-work-date, which is the first day of work. State and county agencies use this information to assist them in locating parents who are delinquent in their child support obligations.
If an employee has a "Child support order", how much may be withheld from the employee's paycheck?
50% - This wording of the question is misleading, but we believe "C" is the best choice. The government allows up to 50% of an employee's DISPOSABLE income to be withheld, the actual amount is determined by the court
When should ear protection be worn?
90 db - Noise levels above 90 db are potentially damaging. An employer must begin to monitor noise when exposure is 85 db or more.
Which of the following would qualify a person as an independent contractor?
A person or a company who agrees to furnish materials and/or labor for a job at certain price - An independent contractor is a person or entity contracted to perform work for—or provide services to—another entity as a nonemployee. As a result, independent contractors must pay their own Social Security and Medicare taxes. The payer must correctly classify each payee as either an independent contractor or employee. Another term for an independent contractor is a freelancer.
An individual applies for a contractor's license and forms a company called 'A Electric Co' and files a fictitious business name statement with the County Clerk. With this information, what type of entity is A Electric Co?
A sole proprietor - Sole owner. Also, known as individual and sole proprietor. CSLB issues licenses to five types of business entities: sole ownership, partnership, corporation, joint venture, and limited liability company.
An aging report is:
A way of keeping track of overdue accounts - The aging report is the primary tool used by collections personnel to determine which invoices are overdue for payment.
What is a simple but adequate way for a contractor to add overhead costs to a bid?
Adding a percentage to the bid, based on estimates of overhead and yearly gross sales - Adding a percentage based on estimates of overhead and yearly gross sales is a simple but adequate way for a contractor to add overhead costs to a bid
When would an employee be required to complete a new IRS Form W-4?
After a change in marital status - Generally, every time you experience an event like getting married, having a child or getting divorced, you will need to change your W-4 form.
Where should the following statement be placed in a written contract ''THE CONTRACTOR IS NOT RESPONSIBLE FOR DELAYS CAUSED BY WEATHER, EARTHQUAKES,FLOODS, OR OTHER ACTS OF GOD''?
After the approximate work period - The "ACTS OF GOD" statement is usually located on a contract after the approximate work period dates.
Ambiguous phrasing in a contract can later be interpreted against the prime contractor. Which of the following will BEST help prevent misunderstandings?
After the contract has had legal review, the prime contractor should go over each line of the contract with the owner - A contract is considered to be ambiguous if the contract is reasonably subject to more than one interpretation. Sometimes, this can mean that it's unclear as to what the parties intended overall. But usually, an ambiguous contract means that a specific term, word, phrase, or definition is vague or unclear.
Who is required to fill out form I-9?
All Workers - All new employees must fill out form I-9 Employment Eligibility Verification.
A mandatory arbitration program is a method of resolving complaints filed with the Contractors State License Board when?
Alleged contract dispute less than $15,000 - The Contractors State License Board (C.S.L.B.) has the power to order the contractor to a mandatory arbitration program for disputes involving alleged damages of less than $15,000.
Which of following is NOT true of an inactive license?
An inactive license requires a contractor's bond - While a license is inactive, you do not need to maintain a bond or workers' compensation insurance coverage, or have a qualifying individual on your license.
An employee has a deep gushing wound on the forearm. What should you do to control bleeding?
Apply direct pressure to the wound - Press the bandage firmly with your palm to control bleeding. Apply constant pressure until the bleeding stops. Maintain pressure by binding the wound with a thick bandage or a piece of clean cloth. Don't put direct pressure on an eye injury or embedded object.
In what venue do you forfeit discovery (evidence)?
Arbitration - You should read this question very carefully. If it appears on your state exam. One of the references cited by the state specifically mentions that discovery is not allowed in arbitration. Pre trial discovery is not allowed in Small Claims action but you are allowed to issue a Small Claims Subpoena for Personal Appearance and Production of Documents. Given the answer choices here, "Arbitration" is the best answer. If "Arbitration is not offered as an answer choice on the state exam you should choose "Small Claims"
According to the Construction Safety Orders, periodic meetings of supervisory employees:
Are required to discuss the safety program, and any accidents that have occurred - Title 8, California Code of Regulations, Section 1509(d) states: (d) Periodic meetings of supervisory employees shall be held under the direction of management for the discussion of safety problems and accidents that have occurred.
Judgments received in a Small Claims Court are ________ as courts of greater jurisdiction.
As binding - Small claims courts only exist at the state level. Federal courts have jurisdiction over all matters involving federal law, and they can only exercise diversity jurisdiction over questions of state law if the amount-in-controversy is $75,000 or more. Judgments received in a Small Claims Court are just as binding as courts of greater jurisdiction.
Where must the supplier s SDS sheets be kept.
At the job site & At the office - Both A & B - MSD sheets and SDS sheets are the same. You may see it both ways on the exam. Employers must ensure that the SDSs are readily accessible to employees for all hazardous chemicals in their workplace. This may be done in many ways. For example, employers may keep the SDSs in a binder or on computers as long as the employees have immediate access to the information without leaving their work area when needed and a back-up is available for rapid access to the SDS in the case of a power outage or other emergency. Furthermore, employers may want to designate a person(s) responsible for obtaining and maintaining the SDSs. If the employer does not have an SDS, the employer or designated person(s) should contact the manufacturer to obtain one.
When a contractor selects jobs for bidding, which of the following considerations is the MOST important?
Availability of financial resources to complete the job - Of the answer choices offered here, availability of financial resources would be the most important detail to consider when selecting jobs.
Which of the following statements is used to determine the (acid test), financial health of a company?
Balance sheet - The balance sheet is a statement of financial condition of an individual business at a certain point in time, of the company's resources, financial obligations, and ownership investment. The balance sheet is divided into two sides: on the left are shown the assets; on the right are shown the company's liabilities, and stockholders' equity (the owners' investment). Both sides are always equal or in balance. The balance sheet is often referred to as a "snap shot." The acid-test is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities. this metric is more robust than the current ratio, also known as working capital ratio, since it ignores illiquid assets such as inventory.
A job calls for the demolition of an old residence in order for a new one to be built. Which of the following should be done?
Call an asbestos abatement contractor to check for asbestos - The National Emission Standards for Hazardous Air Pollutants (NESHAP) regulations under the Clean Air Act specify work practices for asbestos to be followed during demolitions and renovations of all structures, installations, and buildings (excluding residential buildings that have four or fewer dwelling units). The regulations require the owner of the building or the operator to notify the appropriate state agency before any demolition, or before any renovations of buildings that could contain a certain threshold amount of asbestos or asbestos-containing material. In addition, particular manufacturing and fabricating operations either cannot emit visible emissions into the outside air or must follow air cleaning procedures, as well as follow certain requirements when removing asbestos-containing waste.
You would go to a District Court for?
Cases involving Federal Law, Cases involving constitutional issues, Cases involving interstate disputes - All of the above - Federal District Courts are general trail courts. There are four district courts in California. San Francisco, Sacramento, Los Angeles, and San Diego. District courts deal with federal law, constitutional issues, and interstate disputes, among other things
When working on public works projects what information must be sent to the agency if you have an employee?
Certification of workers compensation insurance and Payroll records kept available if requested - A & B above - Additionally, payroll records must be kept available for inspection and must be submitted upon request.
If a client continues to request change orders, you should:
Charge administrative fees, Collect change order costs as you go and Not proceed until your client has signed each change order - All of the above - Disputes frequently arise over "changes" or "extras". First of all, in order to determine if something is extra or outside the scope of the original agreement, contractors must see what the original contract says. If the original agreement is well defined, it will be easier to determine if something is extra. Change orders are required to perform extra or changed work. Change order forms become a part of the contract once the contractor and the homeowner sign them. The order must describe the scope of the extra work or change, the cost to be added or subtracted from the contract, and the effect the order will have on the schedule of progress payments. Change orders can also be written for the removal of items from the original agreement. All change orders must be in writing
What should you do if you find out that the journeymen on your crew are being paid 50% less than the other journeymen on the public works projects?
Check the prevailing wage with the Division of Labor Statistics and Research, Check the prevailing wage with the awarding authority - A & B above - You should read the question very carefully because you might see a different version of this question. The Division of Labor Statistics and Research sets the prevailing wage rate. You can also check the prevailing wage with the awarding authority. The prevailing wage rate should be included in the invitations to bid and the awarding agency should post the prevailing wage at the jobsite.
When a contractor loses money on a job, he should investigate improving the estimating system, trimming labor costs, or using materials more efficiently. Which of the following is the BEST way to determine the source of the problem?
Compare job cost records to the budget - Job costing involves the accumulation of the costs of materials, labor, and overhead for a specific job. This approach is an excellent tool for tracing specific costs to individual jobs and examining them to see if the costs can be reduced in later jobs.
Which of the following insurance policies would protect against a claim if a customer comes to the contractors office and falls down?
Comprehensive General Liability Insurance - Comprehensive General Liability Insurance (CGLI) protects against claims for bodily injury to people who are not employees of the insured contractor. CGLI aslo protects against claims for the damage to property that belongs to other people.
Although many people think that change orders enable a contractor to reap greater profits, they actually add to the overhead. What is the best way to insure not losing money when a client wants a change?
Compute the change order clearly, include an administrative fee, and secure the clients' signature - The best way to insure not losing money when a client wants a change is to compute the change order clearly, include an administrative fee, and be sure to secure the clients' signature.
Which must a contractor do to obtain a Federal Employers' Identification Number (EIN)?
Contact the local Internal Revenue Service office, and file an application where federal returns are filed - Every organization must have an employer identification number (EIN), even if it will not have employees. The EIN is a unique number that identifies the organization to the Internal Revenue Service (IRS). To apply for an employer identification number, you should obtain Form SS-4 and its Instructions. You can apply for an EIN on-line, by mail, or by fax. You may also apply by telephone if your organization was formed outside the U.S. or U.S. territories.
A prime contractor has completed 60% of a job. The owner has not been paying the prime-contractor for the work performed. The prime-contractor has filed a mechanics' lien. What is the contractor's next step?
Continue working on the job - The prime-contractor must complete the project as per the contract
A licensed contractor must apply for a Federal Tax ID number (EIN) if they are a?
Corporation, Sole proprietor with employees, AND Partnership - Answers A, B and C all apply. The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification.
What is the best method for adjusting inventory in a general ledger?
Counting the existing inventory - In the simplest terms a general ledger is a complete record of all the financial transactions of your company throughout its life. The general ledger holds all of the information needed to prepare financial statements and includes assets, liabilities, equity, revenue and expenses.
Which of the following are deducted from an employee's paycheck?
Disability insurance - California State Disability Insurance (SDI) is a partial wage-replacement insurance plan for California workers. The SDI program is state-mandated and funded through employee payroll deductions. Workers covered by SDI have two benefits available to them: Disability Insurance (DI) and Paid Family Leave (PFL). Employers are required to withhold and send State Disability Insurance (SDI) contributions to the EDD.
If you purchase and take delivery of material in a different county than where it will be installed, you will be required to pay __________________ to the county where the materials are purchased.
District tax - The statewide tax rate is 7.25%. In most areas of California, local jurisdictions have added district taxes that increase the tax owed by a seller. Those district tax rates range from 0.10% to 1.00%. ... Sellers are required to report and pay the applicable district taxes for their taxable sales and purchases
A direct-contractor, on his own initiative, changed the design of a building and carried out the changes. The owner rejected the changes and stated that the building had lost market value. If the owner took the contractor to court and obtained a favorable judgment, the owner is:
Due the cost of repair or the loss of market value - The owner would be due the cost of repair or the loss of market value. Market value is the estimated price at which your property would be sold on the open market between a willing buyer and a willing seller under all conditions for a fair sale. Replacement cost is the estimated cost to construct, at current prices, a building with equal utility to the building being appraised.
Which state agency issues an employer's ID number?
EDD (Employment Development Department) - Employer's Identification Number (EIN), also known as the Tax Identication Number (TIN), Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, the EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. When the number is used for identification rather than employment tax reporting, it is usually referred to as a TIN, and when used for the purposes of reporting employment taxes, it isusually referred to as an EIN. The question asks which state agency. The Internal Revenue Service (IRS) is a Federal Agency. The EDD is the State Agency to issue that number
How could a cash flow problem best be prevented?
Each payment should relate to a definite stage of the project - In construction, a payment schedule (or schedule of payments) is a list of dates setting out when payments will be made by one party to another under the terms of the contract between them. It can also also be linked to the completion or fulfillment of certain pre-agreed activities or stages, at which point payments must be made.
Keeping good records in your business will result in what?
Effective business management - You need good records to prepare accurate financial statements. These include income (profit and loss) statements and balance sheets. These statements can help you in dealing with your bank or creditors and help you manage your business. You may receive money or property from many sources.
In accordance with the California Code of Regulations:
Every employer must develop a training program, which includes information about safe work practices - In California every employer has a legal obligation to provide and maintain a safe and healthful workplace for employees, according to the California Occupational Safety and Health Act of 1973. As of 1991, a written, effective Injury and Illness Prevention (IIP), Program is required for every California employer. This manual describes the employers' responsibilities in establishing, implementing, maintaining, an IIP Program. It also outlines steps that can be taken to develop an effective Program that helps assure the safety and health of employees while on the job.
Which of the following statements is vague and should not be used in a contract?
Fill in and smooth the dog scratches as much as possible and paint the door - A contract is considered to be ambiguous if the contract is reasonably subject to more than one interpretation. Sometimes, this can mean that it's unclear as to what the parties intended overall. But usually, an ambiguous contract means that a specific term, word, phrase, or definition is vague or unclear.
A mechanics lien is a written document that must be signed and verified by the claimant. The first and third steps a contractor should take in filing a lien are listed below. STEP 1: Obtain the exact legal description of the property. STEP 2: ?? STEP 3: Find out if the person requesting the improvement is the owner. What is step 2 ??
Find name of legal owner & percent of ownership -
If an OSHA inspector is denied access to inspect the property?
He will come back with an inspection warrant - OSHA is committed to strong, fair, and effective enforcement of safety and health requirements in the workplace. ... Normally, OSHA conducts inspections without advance notice. Employers have the right to require compliance officers to obtain an inspection warrant before entering the worksite.
Why would there be a difference between the actual inventory and the inventory shown on paper.
It is a common occurrence because of factors such as theft, natural losses and mistakes - It's not uncommon for there to be a discrepancy between the actual inventory and what's on paper due to factors such as theft, natural loss, and mistakes.
A residential project has not been worked on for over one year. What answer reflects the status of the original building permit?
It is only current as long as there is evidence of progress being made - Answer "B" could be correct if no progress had been made. If you see both answers then the state wants the most correct which would be answer "D" since it did show progress
What is the MOST important benefit of using a consistent set of procedures to calculate bids?
It reduces the amount of time needed to calculate a bid - Consistency is necessary for any business to succeed. By developing consistent standards and processes that go hand-in-hand with the values of the organization every area of a business will benefit.
Which of the following BEST describes the function of the Building Standards Code?
It sets forth requirements while allowing for adaptation for local authorities - CALIFORNIA BUILDING STANDARDS CODE (CALIFORNIA CODE OF REGULATIONS, TITLE 24) The California Building Standards Code is a compilation of three types of building standards from three different origins: Building standards that have been adopted by state agencies without change from building standards contained in national model codes; Building standards that have been adopted and adapted from national model codes to address California's ever-changing conditions; and Building standards, authorized by the California legislature, that constitute amendments not covered by national model codes, that have been created and adopted to address particular California concerns. All occupancies in California are subject to national model codes adopted into Title 24, and occupancies are further subject to amendments adopted by state agencies and ordinances implemented by local jurisdictions' governing bodies.
Which of the following is considered the most accurate way to bid a job?
Make a detailed survey of equipment and materials needed for the job - Making a detailed survey of equipment and materials needed for the job would be the most accurate way to bid a job.
What should you do if an employee has a small accident but says he/she is not injured?
Make a report because he might get worse - You always make a report no matter how small. If the employee does not miss work and does not require medical attention then the accident does not need to be reported. An injury or illness that requires medical attention beyond first aid results in the absence from work for a full day or shift beyond the date of that injury or illness must be reported to DOSH within five days. As the question is worded here a report is not necessary to DOSH if only a small injury, but the employer still should make a report for the company's records. A report will need to be filed if the employee misses a later shift or seeks medical attention. "B" would be the best choice...
What is the significance of "Retention"?
Must not be underestimated - Retention money is an amount held back from a payment made under a construction contract. ... It is generally held to ensure that a contractor performs all of its obligations under the contract, and is then released either on practical completion or after the end of a defects notification period.
Does the three day cancellation period apply if a homeowner comes to your office and signs a contract for work?
No - The three day right to cancel is part of the Home Solicitation Sales Act and is designed to protect people (home owners) from high pressure sales tactics in their homes. The three day right to cancel does not apply to contracts negotiated and entered into at the contractors place of business.
ABC Company buys XYZ Company. XYZ had just signed a three year collective bargaining agreement with a labor organization that contained a successor clause. Can ABC Company change the collective bargaining agreement?
No, ABC may not make any changes until the collective bargaining agreement expires in three years - Section 1127 of the Labor Code states that a successor clause is binding until the expiration date of the collective bargaining agreement as long as the agreement will not be in force "for more than three years from the effective date of the collective bargaining agreement."
How must a contractor post information regarding workers compensation to his emloyees?
On a notice posted in a location frequented by employees - Employers must give every new employee either at the time the employee is hired or by the end of his or her first pay period, written notice of the employees right to receive workers compensation benefits. Employers must also post conspicuously, in a location frequented by employees a Notice to Employees Poster containing the workers compensation information.
Fixed costs are a part of which of the following categories?
Overhead - In economics, fixed costs, indirect costs or overheads are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related, such as interest or rents being paid per month, and are often referred to as overhead costs - In economics, fixed costs, indirect costs or overheads are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related, such as interest or rents being paid per month, and are often referred to as overhead costs.
What possible reason would an owner have for requiring an unconditional lien release from a subcontractor?
Owner's property covered by the release may not be liened - A Unconditional Mechanic's Lien Release is a legal document that should be considered a satisfied lien inasmuch as this specific type of release places no restrictions upon on the discharge of the owner's property. Generally, this particular form would indicate that any legal financial instrument that has been used to complete payment for a release has cleared the institution. It may also mean that suitable arrangements have been made to clear the debt owed and that the holder of the lien requires no other steps to be completed, documentation or payment to be received in order for the lien to be considered a cleared lien.
The best two methods for keeping track of job expenses are:
Payroll journal and expense journal - A payroll journal is a detailed record of accounting transactions related to payroll. Expense Journal entries are the key accounting entries that reflect the expenditures incurred by the entity. Journal entries are the base of accounting. All journal entries construct financial statements and help in financial analysis and decision-making.
Which of the following is a legal remedy for non-payment of funds owed to a contractor on a private job?
Perfect the lien - A perfected lien is a binding document that has been filed with the appropriate agency allowing for a legal claim to seize assets if a loan borrower defaults. A perfected lien is ultimately the lien created to secure collateral for the creditor in a secured loan.
Which of the following is classified as a job related direct cost?
Performance bond & field superintendent - A direct cost is any expense that only exists because of a specific job. A performance bond guarantees that the job will be completed to plans and specifications and applies to on specific job.
How often must Form 941 be submitted?
Quarterly - Form 941 is the Employer's Quarterly Federal Tax Return and is submitted to the IRS with the quarterly income tax withholdings and Social Security and Medicare taxes.
If you are bidding on a job that is similar to a job you completed six months ago, and you are planning to use the same materials, what should you bid for the materials?
Re-work the entire bid - Prices for materials may change even in a short amount of time.
When you get an approved set of plans, what should you do first?
Read any notes from the building department - BUILDING DEPARTMENT: A city or county department that is responsible for enforcing building codes, reviewing and approving building codes, and enforcing law, rules, and regulations pertaining to construction, remodeling, and demolition.
An accounts receivable ledger includes all money:
Received for services, and due for services - The accounts receivable ledger is a subledger in which is recorded all credit sales made by a business. It is useful for segregating into one location a record of all amounts invoiced to customers, as well as all credit memos and (more rarely) debit memos issued to them, and all payments made against invoices by them.
When an owner signs a receipt for a stop notice, it usually means the owner:
Recognizes that a lien could be placed on funds - For private works of improvement, the Mechanics' Lien and Stop Notice gives the claimant a lien against un-disbursed construction funds in the possession of either the owner or the lender. For private works of improvement, the Mechanics' Lien and Stop Notice are cumulative remedies which can be simultaneously pursued along with a suit for breach of contract on the underlying debt.
Which is NOT an acceptable way to satisfy the requirement for Workers' Compensation Insurance?
Requiring employees to carry their own compensation insurance - CSLB licensees that have an active license or want to reactivate an inactive license, or applicants for an active contractor's license have to do one of two things: Provide CSLB with a valid Certificate of Workers' Compensation Insurance (Easy-Fill Online Form or Download Guide) or a valid Certification of Self-Insurance from the Department of Industrial Relations; or Provide CSLB with a signed exemption, certifying that they have no employees at this time (Download Form or Order Form #32) NOTE: All active C-39 (Roofing) licensees are required to carry workers' compensation insurance or a valid Certification of Self-Insurance, whether or not they have employees.
When spraying toxic materials, which of the following safety equipment must be worn?
Respirator specially designed for that material - OSHA's respirator standard requires employers to establish and maintain an effective respiratory protection program when employees must wear respirators to protect against workplace hazards. Different hazards require different respirators, and employees are responsible for wearing the appropriate respirator and complying with the respiratory protection program.
After the building plans are approved, what is the next step?
Review the plans for errors or corrections - You'll always want to review the plans for possible errors and make any necessary corrections before moving forward.
A contractor bills an owner on the first of the month, and indicates that the delinquent date would occur on the fifteenth of the month. If the client does not make payment by the fifteenth, which is the contractor's next probable action?
Send a follow-up letter to the owner, along with another bill - Send a follow-up letter to the owner, along with another bill. Here is a good letter example: Subject: Invoice [your invoice number here] is overdue Hi [client name], Our records indicate that invoice [invoice number here] is currently outstanding. Payment in the amount of [invoice amount] was due one week ago. If you would look into this we would very much appreciate it. We know that life can be busy, and details can be missed. If there's anything we can do to facilitate payment, please let us know. If you have any questions we're happy to answer them. If you need another copy of the invoice just let us know. Sincerely, [Your name]
To ensure that "YOUR" contractor's worker's compensation policy is in force, which answer is correct?
Send the renewal payment before the policy expires - To ensure that "YOUR" contractor's worker's compensation policy stays in force be sure to send the renewal payment before the policy expires.
The purpose of a specification sheet attached to a set of plans is to:
Show detailed instructions on the plan - A specification sheet, or data sheet, describes the technical aspects of a project. Specification sheets are very detailed lists, useful both to inform end consumers, and also to close sales with potential clients. Specification sheets allow consumers to compare a product with competition in an equal manner.
Why would an owner request a conditional waiver of lien rights for work on residential property?
So subcontractors won't lien the owner's property - Conditional waiver on final payment - This waiver releases all claimant rights to file a mechanics lien if they have indeed been paid to date (and that includes no return or stopped payment checks). ... It is immaterial if the payment check has been returned or stopped payment.
The most accurate method of estimating the cost of materials for a job is:
Stick-by-stick - The stick method is done by creating a complete materials list (down to each stick of wood), a complete labor schedule hour by hour and day by day and a list of all vendor proposals, overhead costs, profits, etc. Simply add them up. On small jobs of less than $5,000.00 the stick method is the best method.
You have determined that the job you are working on involves asbestos. What should you do?
Stop work immediately - If you have determined that the job you are working on involves asbestos, the first thing you do is to stop work immediately. The contractor(s) must always presume that asbestos is present in any building or structure unless the owner can produce proof that materials are asbestos-free. The owner's response should be documented. The property owner, general contractor, or contractor must perform due diligence to prove the presence or absence of asbestos before disturbing suspect building materials on any building or structure built at any time.
Upon discovery of human remains or burial artifacts at any site other than a dedicated cemetery, what following actions must be taken?
Stop work immediately at that site and any nearby areas, Contact the County Coroner and It is a felony to obtain or possess Native American remains or associated grave goods - All of the above -
If you unlawfully discharge an employee for a wage garnishment, the penalty is ________ .
That the employee's wages will continue for 30 days - (b) No employer may discharge any employee by reason of the fact that the garnishment of his wages has been threatened. No employer may discharge any employee by reason of the fact that his wages have been subjected to garnishment for the payment of one judgment. A provision of a contract of employment that provides an employee with less protection than is provided by this subdivision is against public policy and void. (c) Unless the employee has greater rights under the contract of employment, the wages of an employee who is discharged in violation of this section shall continue until reinstatement notwithstanding such discharge, but such wages shall not continue for more than 30 days and shall not exceed the amount of wages earned during the 30 calendar days immediately preceding the date of the levy of execution upon the employee's wages which resulted in his discharge.
Which of the following is true and correct about the Right to cancel home solicitation contract or offer?
The buyer has the right to cancel a home solicitation contract or offer until midnight of the third business day after the day on which the buyer signs an agreement, The buyer has the right to cancel a home solicitation contract or offer until midnight of the fifth business day after the day on which the buyer signs an agreement and The buyer has the right to cancel a home solicitation contract or offer until midnight of the seventh business day after the day on which the buyer signs an agreement - All of the above - All of the above - new law for seniors 65+ (01/01/2021) have five business days. State of emergency by the president or governor (7-days)
When a contract includes a complete agreement clause:
The contractor and the owner are bound by the general provisions of agreement , specific data, and terms of the contract - A meeting of the minds; a legally enforceable promise or promises between two or among several persons; on a construction project, the document stating the essential terms of the construction contract which incorporates by reference the other contract documents; the document setting forth the terms of the contract between the designer and owner or between the owner and the contractor.
Which of the following is TRUE?
The contractor should not make progress payments, until he/she has personally inspected the subcontractor's work - In construction, a progress payment is a partial payment that covers the amount of work that has been completed up to the point of invoicing. There are several ways to structure these payments. The most common ways of billing for progress payments are: Billing by stage. Invoicing by percentage of completion.
Which of the following is MOST IMPORTANT regarding safety at a job site?
The contractor should require the workers to use safety equipment - Requiring employees to use safety equipment is the MOST IMPORTANT rule on any job site.
All employees, including U.S. citizens, must complete Form I-9 . When must an employee complete Form I-9 ?
The first day they start work - "All newly hired employees are required to complete Section 1 (Employee Information and Attestation) of the IRS Form I-9 no later than the first day of employment. Be careful when reading this question. There is a similar question asking when the EMPLOYER must complete the I-9 form. When must the EMPLOYER complete the I-9 form. The correct answer for employers is within 3 days of the date of hire.
What is the MOST important reason contractors should review plans and specifications with subcontractors?
The job cannot be scheduled until the contractor has checked with the subs - Reviewing plans and specifications with subcontractors is very important before the job can be scheduled.
Which answer determines sources of financing?
The legal business entity of your business - The five types of business entities for construction in the state of California are a sole proprietorship, a partnership, a corporation, limited liability and joint venture. For example: A sole proprietorship is owned by one person, a partnership is owned by two or more people, and a corporation is a business entity separate from its owners. Each has its own separate type of resources available for each business entity, for example a partnership has the available resource of one or more of the partners' credit worthiness to obtain a loan or line of credit.
Which of the following statements concerning mechanics' lien is correct?
The owner is responsible for the debt stated in the lien - A lien can result when the prime contractor (referred to as a "direct contractor" in mechanics lien revision statutes, effective July 1, 2012) has not paid subcontractors, laborers, or suppliers. Legally, the homeowner is ultimately responsible for payment — even if they already have paid the direct contractor.
Which BEST expresses the PRIMARY purpose of a monthly budget?
To compare actual to planned expenses - The primary purpose of a monthly budget is to compare actual to planned expenses.
When you take an employee with you to City Hall, to get a building permit what should you bring with you besides your contractors' license?
Workers compensation certificate and Set of plans - Both A & B - Contractors are required to sign a declaration verifying workers compensation coverage of exemption from coverage when applying for a building permit. Contractors are required to show their valid workers compensation certification when the permit is issued. A set of plans is usually required as well.
What does an employee handbook typically include?
Working hours and other company policies - An employee handbook is a document that communicates your company's mission, policies and expectations. Employers give this to employees to clarify their rights and responsibilities while they're employed with the company.
Your Workers' Comp. policy lapsed 2 weeks ago. You mailed the check yesterday and today an employee is injured on the job. Which of the following is TRUE?
You are not covered because the policy lapsed - California law requires that employers, including those in the construction industry, carry workers' compensation insurance, even if they have only one employee. If your policy lapses, you will not be covered
Which of the following statements is correct regarding a schedule of payments in an original bid?
You are not required to include a schedule of payments in the original bid - Contractors are not required to include a schedule of payments in an original bid.
Which is NOT true about small claims court?
You can foreclose on a mechanics' lien - It doesn't matter whether your mechanics lien claim is for just $300, the small claims courts in California (and most everywhere else) simply do not have the jurisdiction to enforce mechanic lien claims.
What will happen if you are awarded the bid on a public works project and you pay less than the prevaling wages?
You will be required to pay the employees the extra money - You are required to pay the employees the difference in the wages and you might also be required to pay a fine.
A discharge may ________ be based wholly or in part, on a first time wage garnishment.
never - Under federal law, your employer cannot discharge you if you have one wage garnishment. However, federal law won't protect you if you have more than one wage garnishment order.
A permit-required confined space is defined as a space large enough and so configured that an employee can bodily enter and
perform assigned work, has limited or restricted means for entry or exit, not designed for continuous employee occupancy - All of the above - Many workplaces contain spaces that are considered to be "confined" because their configurations hinder the activities of employees who must enter into, work in or exit from them. In many instances, employees who work in confined spaces also face increased risk of exposure to serious physical injury from hazards such as entrapment, engulfment and hazardous atmospheric conditions. Confinement itself may pose entrapment hazards and work in confined spaces may keep employees closer to hazards such as machinery components than they would be otherwise. For example, confinement, limited access and restricted airflow can result in hazardous conditions that would not normally arise in an open workplace.
To whom should a Misc-1099 be sent?
to a subcontractor earning over $600 during a calendar year - The Form 1099-MISC is an Internal Revenue Service (IRS) tax return document used to report miscellaneous payments made to nonemployee individuals, such as independent contractors, during the calendar year. ... At least $600 in services, rents, prizes or awards and other income payments.
An ____________ __________ raises limits and covers items that would not be covered by your standard General Liability Policy.
umbrella policy - Umbrella insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies.
