Law & Business Test 4
The minimum fine for unlawful asbestos removal is:
$1,000 - Fines and Penalties - A contractor who engages in asbestos-related abatement work of 100 square feet or more surface area of asbestos-containing materials without CSLB certification/licensure and DOSH registration is subject to one of the following fines and penalties by CSLB: • For a first offense conviction, the fine is between $1,000 and $3,000 and may include license revocation or suspension (Business and Professions Code section 7028.1(a)). • For conviction of a subsequent offense, the fine is between $3,000 and $5,000 or possible imprisonment in county jail for up to one year, or both, as well as license suspension or revocation (Business and Professions Code section 7028.1(b)).
How many employees must an employer have before she must make disability insurance deductions?
1 or more - California law requires employers to participate in the state short-term disability insurance (SDI) program. Employers are required to withhold and send State Disability Insurance (SDI) contributions to the EDD. They must also inform their employees of laws and regulations pertaining to employment, benefits, and working conditions.
How many employees must an employer have before he must apply for workers compensation insurance?
1 or more - California law requires that employers, including those in the construction industry, carry workers' compensation insurance, even if they have only one employee. The insurance exists for employees who get hurt or sick because of work. Workers' compensation insurance provides basic benefits, including medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits and a return-to-work supplement, and death benefits.
Unless the project costs are under _______ dollars total. Prevaling wage must be paid for public works.
1,000 -
How much can a contractor raise his prices during a declared state of emergency and not be guilty of price-gouging?
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.
If a contractor includes a provision for private arbitration in a printed contract, it must be set out in at least:
10-point roman boldface type or in contrasting red print in at least 8-point boldface type - The CONTRACTORS LICENSE LAW states: "If the provision for arbitration is included in a printed contract, it shall be set out in at least 10-point roman boldface type or in contrasting red print in at least 8-point roman boldface type." In the case of a typed contract, it must be typed in capital letters.
vA private contract is still subject to prevailing wage when one of the following situations applies when more than _____% assignable square footage is leased by a public entity.
50 - From the WECA Blueprint to California's Prevailing Wage Contractor's Guide. A private contract is still subject to prevailing wage when one of the following situations applies: More than 50% assignable square footage is leased by a public entity.
What is the maximum penalty for working as a contractor with a license that has been revoked, suspended, or has lapsed?
6 months in jail and $15,000 fine - Those who are caught contracting without a license likely will have to appear before a Superior Court judge to answer to misdemeanor charges that can carry a potential sentence of up to six months in jail and/or a $5,000 fine, as well as an administrative fine of $200 to $15,000. If illegal contracting continues, the penalties become more severe. A second offense results in a mandatory 90-day jail sentence and a fine of 20 percent of the contract price or $5,000.
The prime contractor must pay the subcontractor within how many days after receiving a progress payment?
7 days - A prime contractor must pay a subcontractor no later than seven days after receipt of a progress payment, unless otherwise agreed in writing.
By law, the maximum hours in a day a minor may work is:
8 - During the school year, minors aged 16 to 17 generally are limited to 4 hours of work on a school day, 8 hours on a non-school day, from 5 a.m. to 10 p.m. (or until 12:30 a.m. on a non-school day). When school is out, the limits are 8 hours per day and 48 per week. Minors 14 to 15 years of age may work up to 3 hours on a school day, 8 hours on a non-school day, and 18 hours in a week, between 7 a.m. and 7 p.m. when school is in session, until 9 p.m. from June 1st through Labor Day, and as many as 40 hours per week when school is out.
Which of the following is not a misdemeanor?
A home improvement salesperson gave a prospective customer an unconditional gift valued at $5 as part of a sales promotion -
Which of the following is an asset on a Balance Sheet?
Accounts Receivable - Examples of assets that are likely to be listed on a company's balance sheet include: cash, temporary investments, accounts receivable, inventory, prepaid expenses, long-term investments, land, buildings, machines, equipment, furniture, fixtures, vehicles
_________ are changes to contract document made during the bidding process period.
Addenda - Modifications revisions or additional clarifications for any reason, added to the contract during the bidding period, after the drawings are issued, are addenda. They can only be in writing, and become part of the contract document.
Which of the following is a true statement about payroll taxes?
All wages are subject to taxation - Wages are compensation for an employee's personal services, whether paid by check or cash, or the reasonable cash value of noncash payments such as meals and lodging. Payments are considered wages even if the employee is a casual worker, a day or contract laborer, part-time or temporary worker, or paid by the day, hour, or any other method or measurement. Wages include, but are not limited to: Salaries, hourly pay, piece rate, or payments by the job. Commissions and bonuses. Overtime and vacation pay. The reasonable cash value of compensation other than cash. Wages are subject to all employment (payroll) taxes and reportable as Personal Income Tax (PIT) wages unless otherwise stated.
You sign a contract that includes fixing the hinges of a home owner's door. After finishing the work, the owner complains that you did not remove the dog scratches from the door's finish. Which is the best way to avoid a dispute or lawsuit?
Be very specific about the work to be done: Review the contract and specifications line-by-line with the owner - Always be very specific about the work to be done and be sure to review the contract and specifications line-by-line with the owner.
One of your customer's accounts has gone past 30 days. What is the best method of handling it?
Begin to charge interest on the customer's account - Charging interest on the customer's account would be the best way to handle past due payments.
A job calls for the demolition of an old residence in order for a new residence to be built. Which of the following should be done?
Call an asbestos abatement contractor to check for asbestos - Removal must be in compliance with OSHA and EPA standards. Notification must be made to the State or EPA asbestos NESHAP coordinator 10 working days before demolition of any building, even if it does not contain asbestos. ... All asbestos containing materials must be removed before burning a structure.
A general contractor who is doing asbestos-related work that involves 100 square feet or more must register with:
DOSH - The Labor Code requires any employer or contractor who engages in asbestos-related work involving 100 square feet of surface area to register with the Division of Occupational Safety (DOSH). Contractors who are performing the work must also be certified b the CSLB. An asbestos certification will not be issued unless the contractor is registered with DOSH.
All contractors working on a public works project MUST be registered with
Department of Industrial Relations -
Who is the overall responsible party for work contracted?
Direct Contractor, Original Contractor, and Prime Contractor - Direct Contractor, Original Contractor & Prime Contractor are same. They are responsible for the work contracted. His/Her responsibilities include on and off-site duties but are not limited to: * scheduling * inspections * contacting the dig alert notification center * updating "as-built" drawings * ensuring subs are duly licensed, bonded and insured * ensuring codes are followed * making sure all payments are made *accounting for supplies on site * making sure there is a min. of 1 bathroom for every 20 employees * making sure there is drinking water on site * making sure there is a first aide kit on site * making sure that the employees of the subs are qualified * dealing with changes * dealing with disputes * establishing & maintaining safety code according to Cal/OSHA, DOSH and IIPP
How could a cash flow problem best be prevented?
Each payment should relate to a definite stage of the project - Managing costs is about resource planning, cost estimating, budgeting, and control. Each payment should relate to a definite stage of the project.
Which of the following is/are grounds for a disciplinary action?
Failure to provide the owner with a Mechanics Lien Warning, Failure to pay employees after receiving payment from the owner, Failure to complete a project for the price stated in the contract - All are grounds for disciplinary action that can range from fines to suspension or revocation of a license.
Where can workers obtain the name of the employer's current workers' compensation insurance carrier?
From the notice that must be posted conspicuously in a location frequented by employees - You must post the "notice to employees" poster in a conspicuous place at the work site. This poster provides employees with information on your workers' compensation coverage and where to get medical care for work injuries. Specific requirements are contained in sections 3550-3553 of the California Labor Code. Failure to post this notice is a misdemeanor that can result in a civil penalty of up to $7,000 per violation. Contact your insurer to get the posting notice and the required information that must be included on it.
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 loss, 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.
What is the name of the form that notifies people that there is a pending lawsuit?
Lis Pendens - Lis Pendens is a notice that a lawsuit is pending and that the lawsuit affects real property. It warns everyone who might acquire the property that he or she may be bound by an adverse judgement.
Is Form 1099-MISC required for a corporation that provided $600 in services as an independent contractor during the calendar year?
No. A 1099 is not required for a corporation - The Form 1099-MISC is an Internal Revenue Service (IRS) tax return document used to report miscellaneous payments made to non-employee individuals, such as independent contractors, during the calendar year. ... At least $600 in services, rents, prizes or awards and other income payments.
Is the Form 1099-MISC required for a corporation that provided $600 in services as an independent contractor during the calendar year?
No. Form 1099-MISC is not required for corporations with certain exceptions - You are not required to issue a 1099-MISC to all corporations. Exceptions include payments of at least $600 to corporations that provide legal / attorney services.
Which of the following statements about the State safety code is correct?
Several state agencies are involved with regulation of the code - Safety requirements are reflected in numerous local, state, and federal laws and regulations. The bulk of the State requirements relating to contractors in California are found in the California Labor Code and Title 8 of the California Code of Regulations. Neither is considered a complete code. Several State agencies like DOSH have regulatory or advisory roles.
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.
What precautions must the contractor take with hazardous substances?
The contractor must adopt a Code of Safe Practices that relates to work at each job site -The Code of Safe Practices should include a requirement that employees use personal protective clothing and equipment while working with hazardous substances. The contractor must also develop a written hazard communication program and provide training for employees.
How can a new employee learn about the safety record of a company?
The employer must post a summary record of job-related injuries and illnesses once a year - This answer assumes that the employer has 11 or more employees. Current and former employees and their representatives must be given access to Cal/OHSA Form 300 ("Log of Work-Related Injuries and Illnesses"). Summary of Work-Related Injuries and Illnesses At the end of the year, all establishments covered in 29 CFR Part 1904 must complete OSHA's Form 300A, the "Summary of Work-Related Injuries and Illnesses", even if no work-related injuries or illnesses occurred during the year. After careful review of the "Log of Work-Related Injuries and Illnesses" to verify that entries are complete and accurate, the total number of incidents in each category listed on OSHA's Form 300 must be transferred to the Form 300A. California law requires employers to post the "Summary" page from February 1 to April 30 of the year following the year covered by the "Summary". It must be displayed in a conspicuous location where notices to employees are customarily posted. A copy of the "Summary" must also be made available to employees who move from worksite to worksite and employees who do not report to any fixed establishment on a regular basis. At the end of the three-month period, the "Summary" should be taken down and kept on file for a period of five years following the year to which it pertains.
A licensed contractor wants to work with a person who is not licensed. Of the following, which is a legal alternative?
They could form a corporation and obtain a corporate contractor's license - Corporate Licenses: A corporate license number is issued exclusively to a specific corporate registration number assigned by the Secretary of State's Office. If this registration number changes, a new contractor license number will be required for the new corporation.
If retention is withheld until substantial completion of the entire job, the subs who worked on the early stages of the project can be put at a financial disadvantage. What is the best way to remedy this situation?
Tie the release of proportional retentions to the completion of the sub's work rather than the entire job -Retention is an amount of money "held back" from a contractor or subcontractor during the term of a construction project. This is a very unique practice specific to the construction industry, but within the industry, it's extremely popular.
When is a worker considered an employee rather than an independent contractor?
When the employer has direct control over the work being performed - The IRS uses 20 different criteria to determine if a worker is an employee or independent contractor-including degree of supervision, whether employees have their own tools, etc. The more the direction, the greater the chance of being ruled an employee. In fact, the IRS usually assumes that the worker is an employee, and that assumption must be disproved to establish status as an independent contractor.
When can a contractor accept a job where the owner does not have a pre-approved loan?
When there is an emergency situation and the owner has a high income and good credit - Contractor financing should only be offered when there is a legally binding contract, the owner has a good credit rating, and the debt is secured.
Within how many days must an "agreement to arbitrate" be returned by the participants after being mailed by CSLB's Registrar?
Within 30 calendar days - An "agreement to arbitrate" must be returned by the participants after being mailed by CSLB's Registrar within 30 calendar days.
Insurance Requirements for Public Works projects, the insurance must provide:
Workers' Compensation as required by the Labor of the State of California and Employers Liability Insurance, Commercial general liability coverage, and Automobile Liability for all owned and non-owned and hired automobiles - Answers A, B and C are all required coverage for Public Works projects.
Can private contracts also simply decide to require prevailing wage at their discretion, even if the state does not require they do so?
Yes, private contracts can require prevailing wages -
Your workers' comp insurance policy lapsed two weeks ago. You mailed the check yesterday, and today one of your employees is injured on the job. Which of the following statements 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.
A time card includes the day and hours the person worked, as well as:
a description of the work - A typical time card will also usually include the employee's name, the days and hours worked, and the job or project number.
A bookkeeper for a construction company sends out invoices once a month. How should the company file its copy of each invoice?
accounts receivable - Accounts receivable are the amounts due from customers. Accounts receivable are legally enforceable claims for payment held by a business for goods supplied and/or services rendered that customers/clients have ordered but not paid for. These are generally in the form of invoices raised by a business and delivered to the customer for payment within an agreed time frame.
Where would a contractor go to verify that building permits were issued for all construction work done on a house?
agency that granted initial permit - When a contractor wants to verify that a building permit was issued, the best way to find out would be to check with agency that granted the initial permit.
Which of the following is the most important factor with respect to a schedule of payments?
amount -
A schedule of payments in a home improvement contract must include which of the following details?
amount of each payment as a sum in dollars and cents, specific reference to the amount of work and services to be performed, and specific reference to the materials and equipment to be supplied - 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. ... The interval of other payments after the initial payment. The timeframe within which the project will be completed. By including a payment schedule in the contract, setting out who needs to do what and by when, the likelihood of parties getting dates wrong (e.g. employer failing to serve a payment notice on time, or a contractor failing to serve an application for payment on the right date), can be reduced, and so disputes are less likely.
Which of the following statements is true?
an 18 year old can legally drive a vehicle as part of his normal job duties - Federal and California laws prohibit minors from doing certain types of work including roofing, demolition, excavation, mining, driving forklifts, operating power-driven circular saws and band saws, and other activities considered hazardous.
A completion date for a home improvement contract is enforceable only when it is written:
and is reasonable to all parties to the contract - A completion date may be approximate and based on an estimate to allow for external factors such as delays due to weather or availability of materials, and it must be reasonable to the parties to the contract.
Which of the following must be included in a home improvement contract?
approximate starting and completion dates - The Contractors License Law requires that a home improvement contract include the "approximate date on which work will be commenced" and the "approximate date of completion."
Of the following, who may file a mechanics' lien?
architects and subcontractors - Unlike material suppliers (retailers), manufacturers are not entitled to file mechanics' liens.
How many times may the qualifying individual take the State license exam before the application is voided?
as many times as necessary within 18 months - If you do not pass within 18 months after your application is accepted by the Board, your application is considered void, and you will have to submit a new application with new fees.
Where must the supplier's MSDS or (SDS), sheets be kept?
at the job site - at the job site. Material Safety Data Sheet (MSDS) and Safety Data Sheet (SDS) are the same.
A general contractor with a general building license wants to form a corporation with two specialty contractors - one has a C-10 license and the other a C-36. The new corporation should:
be licensed in all three license classifications - A corporate license number is issued exclusively to a specific corporate registration number assigned by the Secretary of State's Office. If this registration number changes, a new contractor license number will be required for the new corporation. If a corporation dissolves, merges, or surrenders the right to do business in California through the Secretary of State's Office, the contractor license must be canceled.
What is the best time to talk to a client about liens and stop notices?
before the job starts - Consumers are required to receive a "Notice to Owner" warning about property liens. Anyone who helps improve property, but is not paid, may place what is called a mechanics lien on the property. The main difference between a Mechanics Lien and a Stop Notice is that the lien is secured against the property, 'trapping' it from being sold or transferred until your bill is paid. On the other hand, the notice has no affect on the property - instead, it 'traps' the funds on the project.
According to the federal TRUTH in LENDING ACT, when there is a third-party lender the home improvement contract is unenforceable against the buyer if the:
buyer rescinds the loan within 3 business days - The federal Truth in Lending Act allows buyers to cancel/rescind the loan within three business days if the home improvements are to be financed and involve a security interest in the buyer's home. California laws offer additional protections to the buyer.
A contractor must pay a dump truck carrier for all transportation charges:
by the 20th day following the last day of the month in which the transportation was performed - The time for payment may be different if agreed to in writing by the contractor and the dump truck carrier.
Which of the following would qualify a person as an "independent contractor"?
can make a profit or loss on work - IRS Publication 15-A lists various criteria that determine whether a person is an independent contractor as opposed to an employee. One of the criteria listed is: "The extent to which the worker can realize a profit or loss. An independent contractor can make a profit or loss."
A _____________ is made ready to be issued, for certain items not ready for inclusion in the contract.
cash allowance - As an alternative to leaving the contract item or estimated price out, a fixed lump sum allowance, or unit price, is to be included in contract documents, ready to be issued, for the purchase, delivery and installation of items not yet finalized and not yet ready for inclusion in the contract.
What is a relatively simple way to figure overhead and profit (OH&P) for a bid?
check the profit and loss (P&L) statements for jobs of similar size - The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs and expenses incurred during a specified period, usually a fiscal quarter or year.
Which of the following jobs does not require a contractor's license?
construction of an oil derrick - Per CSLB's California Contractors License Law & Reference Book, Section I., Chapter 1. #3 - Oil and gas operations performed by an owner or lessee are exempt from requiring a contractor's license. An oil derrick is a mechanical structure that forms the very heart of a typical oil rig used for the production of oil. It supports the drilling equipment and machinery that is used in the process of oil extraction from oil wells and reservoirs, both on the seas as well as on land.
Which type of bond ensures that the contractor will pay all labor and material bills and fulfill the terms of the contract?
contract bond - A contract bond is a guarantee the terms of a contract are fulfilled. If the contracted party fails to fulfill its duties according to the agreed upon terms, the contract "owner" can claim against the bond to recover financial losses or a stated default provision. A contract bond is defined as a bond that guarantees "both job completion and payment of all labor and materials." The performance bond guarantees job completion according to plans and specs but does not guarantee payment of bills.
Prior to signing a home improvement contract, the homeowner must be informed of the:
contractor's name, address, and license number - Home improvement contracts must include the contractor's license number and the name and address to which a Notice of Cancellation is to be mailed.
Direct labor burden is comprised of:
cost of payroll taxes, insurance and benefits - Labor burden is the actual cost of a company to have an employee, aside from the salary the employee earns. Labor burden costs include benefits that a company must, or chooses to, pay for employees included on their payroll. These costs include but are not limited to payroll taxes, pension costs, health insurance, dental insurance, and any other benefits that a company provides an employee.
Which of the following is least important in preparing a bid for a home construction project?
cost of permits - The cost of permits would be the least important detail of the choices presented here.
What is the best method of adjusting inventory in the general ledger?
counting the existing inventory - The best method of adjusting inventory in the general ledger is counting the existing inventory. A general ledger is the foundation of a system used by accountants to store and organize financial data used to create the firm's financial statements. Transactions are posted to individual sub-ledger accounts, as defined by the company's chart of accounts.
On a large job, what is the best way to make an efficient schedule?
critical path method (CPM) - Critical path was originally created to estimate task duration and help each of these behind-schedule projects get back on track. Today, the critical path method is used to identify the most important tasks and ensure your project doesn't fall behind schedule.
If an employee is 20 minutes late for work, the employer may:
deduct a half hour's wage - The employer may deduct a half hour's wages for any time lost during the first 30 minutes of the workday. Per Labor Code section 2928.
Direct costs consist of:
direct labor, direct labor burden, direct materials and other direct costs - A direct cost is a price that can be directly tied to the production of specific goods or services. A direct cost can be traced to the cost object, which can be a service, product, or department. Direct costs examples include direct labor and direct materials
If an employee is fired as a result of a garnishment, he must notify __________ within _____ days, if he intends to file a claim disputing lost wages following the firing.
employer ... 30 -
A home improvement salesperson's registration must be renewed:
every two years - Home improvement registrations expire two years from the last day of the month in which it was issued.
A contractor who discovers an error after submitting a bid on a public works project should:
give the public entity written notice of the mistake within five working days after opening of the bids - The Public Contract Code requires that the written notice include sufficient facts for the public entity to determine that the error was material and permitted (e.g., a clerical error in filling out the bid). The contractor may file a lawsuit if the public entity refuses to consent to withdrawal of the bid and the bid bond is forfeited.
On a job site, a Cal/OSHA inspector discovers that a piece of equipment does not comply with a new safety standard. A temporary variance may be granted if the equipment:
is new and requires extra time to be brought into compliance - If the equipment is new and requires extra time to bring it into compliance, the employer may apply for a temporary variance. A variance will be granted only after notice is given to the employees and a hearing is held by DOSH.
When a dispute over an alleged violation is referred to arbitration, the CSLB Registrar looks for:
license in good standing at time of alleged violation - Arbitration is when disputing parties submit their differences to an impartial neutral person who makes a final award or decision. Many disputes between consumers and contractors can be resolved efficiently and in a timely manner through arbitration.
Which agency would you contact when changing the location of a driveway on private property?
local building department - When changing the location of a driveway on private property you would contact your local building department.
If you find that you are not getting work because your bids are too high, you should try:
lowering your fixed expenses - The State may offer a better answer choice. You should review all expenses. If expenses are rock-bottom and your bids are still too high, check to see if your markup for overhead and profit is realistic.
What must licensed plumbing, electrical sign, and well drilling contractors have displayed on both sides of their commercial vehicles?
name, business address, and contractor's license number - The Contractors License Law requires that a C-36, C-45, or C-57 contractor display on both sides of their business vehicles "his or her name, permanent business address, and contractor's license number, all in letters and numerals not less than 1-1/2 inches high."
What is the biggest problem facing new contractors when trying to obtain a "Performance" or "Bid" bond
no prior track record - Having no prior track record would be the biggest problem facing new contractors when trying to obtain a "Performance" or "Bid" bond
To prevent cash flow problems at the end of a construction project, the contractor should:
obtain a line of credit from a bank - You can avoid a cash flow issue using accessible capital with options like a business line of credit or SBA loan. Lines of credit are quick loans for small business owners to cover expenses such as cash flow shortages, day-to-day expenses, and even larger purchases. Like a credit card, a business line of credit offers flexibility; you can use the funds whenever you need them without having to reapply. It is a revolving loan, which means that you can spend up to your credit limit and only pay interest on the amount that you borrow.
Fixed costs apply to 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.
The costs of running your business, including office expenses, etc. is called:
overhead - Overhead refers to the ongoing business expenses not directly attributed to creating a product or service. It is important for budgeting purposes but also for determining how much a company must charge for its products or services to make a profit. In short, overhead is any expense that supports the making or selling of a product or service. Examples of overhead are: Accounting and legal expenses Administrative salaries Depreciation Insurance Licenses and government fees Property taxes Rent Utilities
The best two methods of 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.
Federal regulations on overtime apply to:
piece work, hourly employees and salaried employees - In 2016 new federal overtime rules were adopted that removed certain long-standing exemptions. Salaried employees who do not meet a certain pay threshold will be entitled to overtime, as are hourly and other workers
A payment bond would be posted by the:
prime contractor or property owner - On all construction projects valued at more than $25,000, California Civil Code § 3247 requires a payment bond be posted. Any subcontractors or suppliers who are unpaid for work or materials furnished to a state or county construction project can bring a claim against the payment bond.
At what rate must employees be paid if working a 40-hour week that includes work on a Sunday?
regular time - Work over 40 hours in a week must be paid at 1-1/2 the regular rate, but an employee who works on Sunday in place of another day, and is still within 40 hours, gets regular pay unless an extra amount was offered as an incentive. Key word: includes.
Which of the following are the best examples of fixed costs?
rent, truck payment, insurance - 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. Examples of fixed costs include rental lease payments, salaries, insurance, property taxes, interest expenses.
If you notice that the plans do not specify a fireproof door where one is required, you should:
report it to the architect - If you notice something that is required is missing from plans you should report it to the architect. Architects in construction plays an important role and they are responsible for visual appearance of the buildings and structures before final structural design. Architect is a person appointed by the client, who develops a facility as per the design concept and the requirements specified by the client.
When spraying toxic materials, which of the following safety equipment must be worn?
respirator specifically 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.
What is the maximum penalty for contracting with an inactive, suspended or expired licensed?
revocation of license - The maximum penalty would be licensed revocation. The minimum penalty would be revocation, stayed, with two years probation. Other possible penalties might include a five-day suspension and reimbursement of CSLB investigation and enforcement costs. A license may also be required to take the CSLB license law and business exam again unless it was taken within the last five years.
When applying for a permit to re-install wiring that has been removed from an old Victorian house, the minimum license needed is:
specialty electrical license - C-10 - Electrical Contractor California Code of Regulations Title 16, Division 8, Article 3. Classifications An electrical contractor places, installs, erects or connects any electrical wires, fixtures, appliances, apparatus, raceways, conduits, solar photovoltaic cells or any part thereof, which generate, transmit, transform or utilize electrical energy in any form or for any purpose.
What information must be included in a Stop Notice?
the kind of labor, services, equipment, or materials furnished or agreed to be furnished - This question is referring to a Stop Payment Notice. A Stop Payment Notice is a written notice to a property owner, lender of funds, or public agency that the person filing the notice has performed work for, or has supplied materials to, the direct contractor on a private or public project but has not been paid. The Stop Payment Notice includes a demand that the recipient set money aside to pay the claimant's unpaid bills for goods and/or services. The notice must include a description of the work or materials provided and an estimate of the total value.
Every original license, except an additional classification issued shall be a probationary license until:
the license is renewed & information is brought to the attention of the registrar, during such probationary period, regarding any act or omission of the licensee constituting grounds for denial, revocation, or suspension of an application or license - Section 7077 - Probationary license Every original license, except an additional classification issued pursuant to Section 7059, shall be a probationary license until such time as the license is renewed. If information is brought to the attention of the registrar, during such probationary period, regarding any act or omission of the licensee constituting grounds for denial, revocation, or suspension of an application or license, such that, in the registrar's discretion, it would be proper to revoke the probationary license, the registrar shall forthwith notify the applicant to show cause within not more than 30 days, why the probationary license should not be revoked.
The Mechanics Lien Warning is for the protection of:
the owner - The Mechanics Lien Warning describes in non-technical language the basics of California's lien laws and must be included in home improvement and swimming pool contracts. Mechanic's Lien Warning/Notice to Owner is specifically designed to protect the consumer/notify them of the possibility of a mechanic's lien.
When it comes to liens:
the owner is responsible for paying for the work of improvement - A mechanics lien is a "hold" against a property, filed by an unpaid contractor, subcontractor, laborer, or material supplier, and is recorded with the county recorder's office. If unpaid, it allows a foreclosure action, forcing the sale of the property in lieu of compensation. 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.
Contractors should keep good business records:
to determine if the business is making a profit - For questions like this, you much choose the BEST answer. Good business records should be kept for insurance purposes, to monitor changes in costs, and for IRS audits. Determining if the business is making a profit (the bottom line) is the best answer.
Records of accidents and injuries are kept:
to help determine the causes of accidents and injuries - A review of records of accidents, near misses, and work-related injuries and illnesses can help identify causes and prevent recurrences.
Equity is:
total assets less total liabilities - In accounting, equity is the difference between the value of the assets and the value of the liabilities of something owned. It is governed by the following equation: For example, if someone owns a car worth $15,000, but owes $5,000 on a loan against that car, the car represents $10,000 of equity.
Which of the following components of a bid would be considered non-productive?
travel time - Time is considered non-productive if it is paid but does not contribute to the production of work. Examples are travel time and safety meetings.
When putting together a basic insurance package that meets your construction company's needs, which would not be considered?
umbrella policy - The references listed in the CSLB Study Guide recommend that a construction company obtain property, commercial general liability, and workers' compensation insurance. An umbrella policy extends the limits of your coverage but is considered optional, especially for a new contractor.
Form I-9 must be completed by all employees, including U.S. citizens. When must an employer complete form I-9?
within 3 business days of the date of hire - Be sure to read this question carefully because the requirements are different for employer and employee. Section 1 of the form must be completed by the employee when they start work. Section 2 must be completed by the employer within three days. If the person will be employed for less than three days, the form must be completed by the end of the employee's first working day.
When an employee who is not hired for a specified period quits, the employee must be paid:
within 72 hours of quitting - The rule is that an employee who quits without notice must be paid within 72 hours (or 3 days) of quitting. An employee who has given 72 hours notice is entitled to wages at the time of quitting The question is correct as it is. It it stating that an employee who has not been hired for a SPECIFIED Period, such as for one specific job, quits they must be paid within 72 hours.
A small contractor with no employees is working out of his garage. Which of the following types of insurance is not necessary at this time?
workers' comp - Contractors with no employees are exempt from having to carry worker's comp 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 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
In Small Claims Court, if you want to be represented by an attorney (lawyer):
you cannot consult with attorney in Small Claims Court - You may not be represented by or consult with an attorney during a Small Claims Court proceeding. However, you may consult an attorney before filing a claim or after obtaining a judgment if you need assistance collecting the amount awarded by the Court.
