Law and Business Test 4

The minimum fine for unlawful asbestos removal is: $1,000 $3,000 $5,000 $7,000

$1,000

How many employees must an employer have before she must make disability insurance deductions? 0 1 or more 2 or more 3 or more

1 or more

How many employees must an employer have before he must apply for workers compensation insurance? 0 1 or more 2 or more 3 or more

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.

How much can a contractor raise his prices during a declared state of emergency and not be guilty of price-gouging? 5% 10% 15% 20%

10%

If a contractor includes a provision for private arbitration in a printed contract, it must be set out in at least: 8-point roman boldface type or in contrasting red print in at least 8-point boldface type. 8-point roman boldface type in black print. 10-point italic boldface type in red print. 10-point roman boldface type or in contrasting red print in at least 8-point boldface type.

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.

A 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. 25 50 60 75

50 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What is the maximum penalty for working as a contractor with a license that has been revoked, suspended, or has lapsed? 3 years probation 1 year in jail 6 months in jail and $15,000 fine 3 years in prison

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? 3 days 7 days 15 days 30 days

7 days

By law, the maximum hours in a day a minor may work is: 6 7 8 9

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 nonschool day, from 5 a.m. to 10 p.m. (or until 12:30 a.m. on a nonschool 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 nonschool 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.

What is the maximum number of hours a minor can work on the day before a school day? 6 7 8 9

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 nonschool day, from 5 a.m. to 10 p.m. (or until 12:30 a.m. on a nonschool 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 nonschool 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 failed to disclose the name of the contractor on a home improvement contract form. A home improvement salesperson gave a homeowner $20 for each new customer the homeowner referred to the salesperson. A home improvement salesperson failed to give the contractor a $50 down payment the salesperson received from the customer. A home improvement salesperson gave a prospective customer an unconditional gift valued at $5 as part of a sales promotion.

A home improvement salesperson gave a prospective customer an unconditional gift valued at $5 as part of a sales promotion. Answers 1, 2 and 3 would all be considered misdemeanors. Answer 4. would not be considered misdemeanor.

Which of the following is an asset on a Balance Sheet? income. Accounts Receivable. Accounts Payable. equity.

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. Alternatives Addenda Allowances All of the above.

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/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 of the above.

All of the above.

Which of the following is a true statement about payroll taxes? All wages are subject to taxation. Bartered goods are not subject to taxes. Bonuses are not subject to taxes. Payroll taxes must be paid only once a year.

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. Write a change order. Schedule an on-site meeting with the owner. Have an attorney explain the job description to the owner.

Be very specific about the work to be done: 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? Send it to a collection agency. Contact the customer and put them on a new payment schedule. Begin to charge interest on the customer's account. Stop work immediately.

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.

When in doubt about if you should be paying prevailing wage, ask the _____________________. Contractors State License Board Building Code Offical California Department of Industrial Relations (DIR) Occupational Safety and Health Administration (OSHA)

California Department of Industrial Relations (DIR)

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. Call a demolition subcontractor to remove any suspected asbestos before the inspector arrives. Demolish the building regardless of asbestos. Remove any asbestos yourself, then demolish the building.

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. EPA. Fed/OSHA. Registrar of Contractors.

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 County Recorder's Office Department of Consumer Affairs Bureau of Security and Investigative Services Department of Industrial Relations

Department of Industrial Relations

How could a cash flow problem best be prevented? Contract should specify 10% down and 80% along the way with a 10% retention. Each payment should relate to a definite stage of the project. Owner should pay in full at the start of the job. Owner should pay 50% of total contract at start of the job.

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.

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. From the notice printed on every paycheck. Only if the employer chooses to disclose the name of the carrier. By phoning the employer's insurance agent.

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. You always underestimate what you have in inventory. You calculated what you have in inventory by subtracting only what goes into the finished product. There never is a substantial difference.

It is a common occurrence because of factors such as theft, natural loss, and mistakes.

Is Form 1099-MISC required for a corporation that provided $600 in services as an independent contractor during the calendar year? Yes. A 1099 is required because the corporation is an independent contractor that was paid $600 or more. No. A 1099 is not required unless an independent contractor is paid over $1,000 in a calendar year. No. A 1099 is not required for a corporation. Yes. A 1099 is required for individuals and corporations.

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? Yes. Form 1099-MISC is required because the corporation is an independent contractor that was paid $500 or more. No. Form 1099-MISC is not required unless an independent contractor is paid over $1,000 in a calendar year. No. Form 1099-MISC is not required for corporations with certain exceptions. Yes. Form 1099-MISC is required for all individuals, partnerships, and corporations that provided services as an independent contractor during the calendar year.

No. Form 1099-MISC is not required for corporations with certain exceptions.

What is a qualifier called if he/she is a RME? Qualifying Owner Qualifying Partner Qualifying Officer Qualifying Employee

Qualifying Employee

Which of the following statements about the State safety code is correct? It is a complete code that adopts portions of local codes. It is a complete code that adopts all local codes. Several state agencies are involved with regulation of the code. It is the only code you must consult.

Several state agencies are involved with regulation of the code.

You have determined that the job you are working on involves asbestos. What should you do? File for an Asbestos Abatement certificate. Stop work immediately. Register with DOSH. Remove any asbestos and keep working.

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.

A contractor sues an owner for refusing to make final payment after the job was completed. The owner is demanding changes. What could the contractor have done to prevent the lawsuit? The contractor could have asked the workers to testify. The contractor could have walked the job with the owner and had the owner sign a job completion form. The contractor could have just walked the job with the owner. All of the above.

The contractor could have walked the job with the owner and had the owner sign a job completion form. If you're a construction contractor, you can use a Certificate of Final Completion to certify that a project you are responsible for has been finished. This document states that you have concluded work on a specific construction contract, so that you are no longer responsible for last-minute changes or attempted negotiations. A Certificate of Final Completion provides you with a paper trail for your own records. A Certificate of Final Completion specifies the main parties of the construction project (such as the owner of the building, contractor, and architectural/engineering firm), and states when construction began, the final date that major work on the project was completed, and the final construction cost paid and owed to the contractor.

What precautions must the contractor take with hazardous substances? Each employee must sign a sheet stating that he or she understands the safety and health risks. You must hang a safety poster in an area near the time clock. The contractor must adopt a Code of Safe Practices that relates to work at each job site. You should make every employee wear a dust mask.

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. View a Cal/OSHA safety video tape. Call the Cal/OSHA consultant services. None of the above.

The employer must post a summary record of job-related injuries and illnesses once a year. 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.

A licensed contractor wants to work with a person who is not licensed. Of the following, which is a legal alternative? They could work as partners if the licensed contractor signs all of the contracts. They should apply for a sole proprietorship contractor's license. They could form a corporation and obtain a corporate contractor's license. They could obtain a joint venture contractor's license.

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.

Why should a contractor visit the work site frequently? To know when to schedule final payment. To keep the subcontractors informed of the job's progress and to check on what materials must be ordered for the next phase of construction. To know when to schedule float time. To know the approximate final cost.

To keep the subcontractors informed of the job's progress and to check on what materials must be ordered for the next phase of construction.

When should an employer provide information on safety procedures? When a new employee is hired. Within 30 days of hiring. If safety procedures are not covered in Cal/OSHA publications. Every 30 days at meetings conducted by supervisors.

When a new employee is hired. When a new employee is hired. New employees must be given instructions regarding job hazards, safety precautions, and the employer's Code of Safe Practices. Supervisors must conduct safety (toolbox or tailgate) meetings with their crews every 10 working days.

When does it make the most sense for a contractor to finance a job? When he will not get the job otherwise When the owner will go to a competitor otherwise When it is an emergency situation, and the owner cannot get the money soon enough. When the owner has previous bankruptcies and cannot get credit.

When it is an emergency situation, and the owner cannot get the money soon enough.

When is a worker considered an employee rather than an independent contractor? When the employer has the right to tell the worker to do certain work. When the employer has direct control over the work being performed. When the worker can make a profit or loss on the work. When the worker doesn't set his own hours.

When the employer has direct control over the work being performed.

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. When the owner has bad credit. When the owner has an amount in the bank equal to the contract cost. When the owner seems kind and has an honest reputation.

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 7 calendar days Within 10 calendar days Within 14 calendar days Within 30 calendar days

Within 30 calendar days

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. No, private contracts cannot require prevailing wages. Only under rare situations will the State of Califorina allow private contracts to require prevailing wages. It is illegal for private contracts to require prevailing wage.

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 covered because you mailed a check. You are covered because the injury occurred within 30 days of the lapse of coverage. You are not covered because the policy lapsed. You are not covered because the injury occurred after the two-week grace period.

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: the hourly wage the location of the job the employees date of birth a description of the work

a description of the work

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 State Department of Housing OSHA County Recorder's office

agency that granted initial permit

Federal regulations on overtime apply to: piece work hourly employees salaried employees all of the above

all of the above

What is the maximum penalty for a contractor convicted of price-gouging during a declared state of emergency? permanent license revocation by CSLB $10,000 fine 1 year in jail all of the above

all of the above Criminal penalties would include a year in jail and/or a $10,000 fine. In addition, the CSLB may take disciplinary action ranging from a license suspension of six months to permanent revocation.

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 specific reference to the materials and equipment to be supplied all of the above

all of the above 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 is the most important factor with respect to a schedule of payments? date amount keeping lender informed of job progress phase

amount

Which of the following statements is true? a 17 year old can legally drive a forklift a 17 year old can legally work on a roof a 15 year old can legally work in a tunnel an 18 year old can legally drive a vehicle as part of his normal job duties

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: regardless of labor availability. regardless of material availability. and is reasonable to all parties to the contract. without regard for conditions that might prevail.

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? permit number license bond number approximate starting and completion dates local building department requirements

approximate starting and completion dates

Of the following, who may file a mechanics' lien? manufacturers of construction materials and subcontractors manufacturers of construction materials and clients clients and subcontractors architects and subcontractors

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? once twice three times as many times as necessary within 18 months

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 office they should be discarded in a file cabinet

at the job site Material Safety Data Sheet (MSDS) and Safety Data Sheet (SDS) are the same.

On a small job, what is the best way to make an efficient schedule? bar chart critical path method (CPM) talk to suppliers to arrange around their schedules talk to subs to arrange around their schedules

bar chart The bar chart is used for the representation of a project in which the activities are represented by horizontal segments, of which the length is proportional to the time necessary to conclude the task in question. The bar chart is an effective tool for the management of work in a project.

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 the general building classification only. be licensed in the C-10 and C-36 classifications only. be licensed in all three license classifications. obtain a special license from the CSLB.

be licensed in all three license classifications.

What is the best time to talk to a client about liens and stop notices? before the job starts 10 days after the job starts 20 days after the job starts 30 days after the job starts

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.

What should construction employees wear when working at night? bright-colored vests dark-colored jackets light sticks on strings around their necks night vision goggles

bright-colored vests The OSHA manual states that for daytime work, flaggers must wear a vest, shirt or jacket colored orange, yellow or strong yellow-green. It can be fluorescent. For night work flaggers must wear a "retroreflective" vest, shirt or jacket that reflects back a high percentage of headlight beams.

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. funding is provided by a government loan or grant. home improvement contract is sold by a salesperson. owner decides that a competing contractor will finish the remaining work for less than the amount stated in the contract.

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: immediately. by the 20th day following the last day of the month in which the transportation was performed. within 30 days following the last day of the month in which the transportation was performed. within 10 days after the transportation was performed.

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.

A _____________ is made ready to be issued, for certain items not ready for inclusion in the contract. cash alternative provision cash allowance None of the above.

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? use the industry standard average the OH&P on jobs for the previous month review OH&P and contracts for the past year check the profit and loss (P&L) statements for jobs of similar size

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? building a six-foot high fence construction of an oil derrick painting the interior or exterior of a building installing a French door

construction of an oil derrick 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.

Who is responsible for having the job ready for the inspector? contractor owner architect foreman

contractor

Prior to signing a home improvement contract, the homeowner must be informed of the: contractor's references. number of subcontractors on the job. contractor's name, address, and license number. amount of money the contractor has allowed for overhead.

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. cost for labor and payroll taxes. expenses charged to overhead. payroll expenses.

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.

What is the best method of adjusting inventory in the general ledger? adding new purchases averaging last year's inventory counting the existing inventory subtracting what you have used

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.

Good cash flow is achieved when: current assets equal current liabilities. total liabilities are less than total assets. current liabilities are less than current assets. total income equals total expenses.

current liabilities are less than current assets. Cash flow positive (Good cash flow) means that you have more money going into your business at any given time than you do coming out. Current liabilities are debts that will mature either in the current period or the next 12 months, whichever is sooner. This means that the company will have to come up with this amount of cash in the next year in order to pay back its creditors. Current assets, on the other hand, represent the amount of cash and assets that will likely be converted into cash in the next 12 months. Thus, this includes cash, short-term investments, inventory, and accounts receivable. It's basically anything that can be sold or traded for cash in the next year.

If an employee is 20 minutes late for work, the employer may: deduct a half hour's wage deduct an hour's wage deduct for 20 minutes only not deduct from wages

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.

A contractor who discovers an error after submitting a bid on a public works project should: do any work not covered in the bid and bill on a time-and-material basis. request that the public entity execute a change order after the bid is accepted. give the public entity written notice that the bid is withdrawn within ten working days after opening of the bids. give the public entity written notice of the mistake within five working days after opening of the bids.

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 a piece of equipment that is hazardous. A temporary variance may be granted if the equipment is new and can be fixed before use if the equipment was recently repaired if the equipment can be repaired on-site if the equipment can be recycled

if the equipment is new and can be fixed before use 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.

Which of the following muscles should be used more when lifting heavy materials? back arms legs shoulders

legs Lifting from your legs gives you the power and stability you need to move weights without hurting your back. Back injuries are among the most common form of injury in the United States. ... Avoid twisting your trunk, your legs and arms should do most of the moving. Keep the weight close to your body.

When a dispute over an alleged violation is referred to arbitration, the CSLB Registrar looks for: licensee has 2 or less violations in past 10 years. license in good standing at time of alleged violation. all parties have agreed to private arbitration. amount of damage is over $50,000.

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

When preparing a cost estimate, which of the following could NOT be determined without visiting the site? location of the electrical source measurements of the walls and ceiling what materials are needed which subcontractors to use for the job

location of the electrical source A site visit would allow the contractor to determine availability of electrical and water sources, soil type, vehicle access, and other details that are not covered in the plans and specifications.

When preparing a cost estimate, which of the following could not be determined without visiting the site? location of the electrical source measurements of the walls and ceiling what materials are needed which subcontractors to use for the job

location of the electrical source A site visit would allow the contractor to determine availability of electrical and water sources, soil type, vehicle access, and other details that are not covered in the plans and specifications.

If you find that you are not getting work because your bids are too high, you should try: using a standard 10% overhead figure lowering your fixed expenses hiring lower wage employees working for time and materials

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, phone number, and contractor's license number name, business address, and contractor's license number name and contractor's license number only nothing

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 they don't have a broker no prior track record poor credit none of the above

no prior track record

To prevent cash flow problems at the end of a construction project, the contractor should: obtain a line of credit from a bank. order all materials before beginning work. seriously consider changing the payment schedule. ask the owner to make payments before they are due.

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 direct costs travel expenses labor

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: direct costs. overhead. a liability. accrual method.

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.

When a contractor is bidding a job, which of the following is the biggest risk factor? owner's financial stability change orders small extras finding subs

owner's financial stability Under financial risk factors, the identified risk factor with the highest mean score is funding uncertainties while stability of market condition scored the least, meaning that funding uncertainties is perceived as the greatest risk factor for building contractors in cost estimation

The best two methods of keeping track of job expenses are: general ledger and payroll journal payroll journal and expense journal expense journal and general ledger general journal and general ledger

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.

A payment bond would be posted by the: prime contractor or property owner. prime contractor or subcontractor. subcontractor or material supplier. property owner or material supplier.

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 time and a half double time triple time

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 advertising, office supplies, equipment maintenance mortgage, fuel, utilities rent, utilities, equipment maintenance

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 talk to the owner fix it yourself install the door and bill the client

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? hooded suit respirator specifically designed for that material safety goggles none, toxic materials should never be sprayed

respirator specifically designed for that material

What is the maximum penalty for contracting with an inactive, suspended or expired licensed? revocation of license. one-year license suspension fine and license suspension for up to one year suspension of license for five days or more

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.

The purpose of a specification sheet attached to a set of plans is to: show detail instructions on the plan. let the contractor know what has to be done. show what materials need to be used. show specific dates of completion.

show detail instructions on the plan. Specifications describe in detail how a structure is to be built. Specifications work together with the working drawings (blueprints) to give the information needed to build a structure. Specifications add details that are not on the plans. For example, the plans may show an exterior door and the dimensions of the opening, and the specifications might describe the door as a solid-core and left-hand swing.

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 general contractor's license remodeler's license no specific license is required

specialty electrical license

If a contractor has a bad set of plans, he or she should: reject the job do the job anyway do a change order talk to the owner and see if you can get a better set of plans & talk to an architect

talk to the owner and see if you can get a better set of plans & talk to an architect

What information must be included in a Stop Notice? the kind of labor, services, equipment, or materials furnished or agreed to be furnished. the construction loan terms, interest rate, and deadline for project completion. the type of zoning, setback, and lot coverage limitations on the permit. the type of asbestos, tonic fumes, or hazardous materials found.

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.

The Mechanics Lien Warning is for the protection of: the owner. the contractor. the contractor's employees. all of the above.

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.

An individual who meets certain conditions may serve as the qualifier for up to _____ firms in any one-year period. one two three four

three In general, a person may serve as the qualifying individual for up to three firms in any oneyear period given certain conditions, such as they own 20 percent of the equity of each firm.

Contractors should keep good business records: for insurance purposes. to determine if the business is making a profit. to monitor the change in costs over a five-year period. in case the IRS audits them.

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.

Equity is: liabilities plus net worth. current assets plus fixed assets. fixed assets less current assets. total assets less total liabilities.

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? equipment purchased for job surface preparation for painting equipment rental travel time

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? property insurance liability insurance umbrella policy workers' compensation policy

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.

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? property damage general liability commercial vehicle workers' comp

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): the attorney must remain quiet except when consulting. you are limited to one attorney. you cannot consult with attorney in Small Claims Court. the attorney is limited to 10 minutes of bench time.

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.