VA Business' Exam Practice
A class A license is REQUIRED when a single contract is more than a) $120,000 b) $100,000 c) $750,000 d) $20,000
a) $120,000
If a contract awards more than $_____________ per project, the contractor requires a Class A license. a) $120,000 b) $7,500 c) $750,000 d) $150,000
a) $120,000
Initial licensure fees include a fee for the Contractor Transaction Recovery Fund of a) $25 b) $50 c) $100 d) $200
a) $25
What is the maximum fine amount per day for failure to comply with EPA requirements for exposure to lead? a) $37,500 b) $1000 c) $500 d) $100
a) $37,500
what percent of workers compensation insurance premiums for an employee can be deducted from the employee's pay. a) 0 % b) 1.45 % c) 5 % d) 6.2 %
a) 0 %
What is the minimum annual vacations hours required by the Fair Labor Standards Act? a) 0 hours b) 8 hours c) 40 hours d) 80 hours
a) 0 hours
What percent of an employee's wages is withheld for Medicare tax? a) 1.45 % b) 2.90 % c) 6.20% d) 7.65 %
a) 1.45%
What has been the approximate average profit margin in the construction industry in the past several years? a) 15 % b) 10 % c) 20 % d) 40 %
a) 15 %
The total for an individual's Medicare is taxed at _____________. a) 2.9% b) 1.45% c) 15.3% d) 6.2%
a) 2.9%
A code official may request the initiation of legal proceedings against a contractor served with a minimum of how many notices of violation within one calendar year for beginning work without a required permit? a) 3 b) 5 c) 7 d) 1
a) 3
To obtain a Class B license the qualified individual shall have at least ( ) years experience. a) 3 b) 2 c) 4 d) 1
a) 3
A firm who is attempting to obtain a Class A license shall provide information to the Board for the ( ) years prior to application on any outstanding, past due debts and judgments. a) 5 b) 3 c) 2 d) 4
a) 5
Soil stabilization MUST be applied to denuded areas within how many days after final grade is reached on any portion of ths site? a) 7 days b) 10 days c) 21 days d) 30 days
a) 7 days
In the event the designated employee leaves the full time employ of a Class A licensed contractor, the contractor shall within ( ) days of that departure provide to the Board the name of the new designated employee a) 90 b) 60 c) 90 d) 30
a) 90
An individual qualifying for licensure which require a trade exam must a) Be a full-time employee. b) Be an owner. c) Have net worth off at least $15,000 d) Have net worth at least $30,000
a) Be a full-time employee
Who can file a complaint against a contractor (under the Recovery Fund)? a) Residential property owner b) DPOR c) any person d) only the other part of the contract
a) Residential property owner
When a claimant is paid from the contractor recovery fund. a) The contractor license is revoked b) the contractor licensee is suspended until the fund is repaid. c) bond is required for all future contracts d) a lien is filed against the contractor
a) The contractor license is revoked
A code official can begin legal proceedings against a contractor with a minimum of how many violations within one calendar year for work without a permit: a) Three b) Four c) Five d) Six
a) Three
An acceptance of an offer which changes some of the original offer is considered a) a counter offer b) binding c) lump sum contract d) change order
a) a counter offer
A note on a company truck due to be paid off within the current year is considered. a) a current liability. b) a current asset. c) a fixed asset. d) owner's equity
a) a current liability
A financial statement that reflects a company's operation includes a) a working capitol statement b) a statement of cash flows c) a balance sheet d) an income statement
a) an income statement
All but which of the following is an obligation by the contractor? a) approval of all plans b) complete work according to plans c) keep the job site safe d) secure appropriate building permits
a) approval of all plans
Payments made by the Transaction Recovery Fund to claimants may include an amount for: a) attorneys' fees (and court costs) b) interest c) punitive damages d) exemplary damages.
a) attorneys' fees (and court costs)
In a typical contractual agreement, who is responsible for ensuring that all required permits are obtained? a) contractor b) owner c) architect4 d) supervisor
a) contractor
A method of reducing theft on the job is to a) control material deliveries. b) use standard sizes for materials. c) use conceptual. d) control overhead.
a) control material deliveries
Company overhead rates included in an estimate should be based on a) historical data and business projections b) bid documents c) unit pricing d) lump sum estimates
a) historical data and business projections
When must the work be stopped following the issuance of a stop work order? a) immediately. b) within 24 hours c) within 48 hours. d) within time designated by stop work order.
a) immediately
All Class A contractor licensure applications MUST include a) information on the knowledge, skills, and abilities of the applicant b) a certified balance sheet c) the name and addresses of all officers of a sole proprietorship d) examination results
a) information on the knowledge, skills, and abilities of the applicant.
The general rule of law for interpreting an ambiguous provision of a contract is that it is a) interpreted against the party who wrote it. b) not binding c) interpreted against the owner. d) interpreted against the contractor
a) interpreted against the party who wrote it.
The general rule of law for interpreting an ambiguous provisions of contract is that it is a) interpreted against the party who wrote it. b) not binding. c) interpreted against the owner. d) interpreted against the contractor.
a) interpreted against the party who wrote it.
An owner wants a swimming pool built in a specified location. the location is in violation of the locate code. the contractor should a) not agree to build the pool b) make the owner sign a waiver of liability c) build the pool as d) subcontract the work to a pool contractor
a) not agree to build the pool.
Who may file complaints against a licensed contractor? a) only a person for whom the contractor's has performed work. b) only a building inspector or building official c) either, a person for whom the contractor has performed work, an inspector, or building official d) any person
a) only a person for whom the contractor's has performed work.
IRS Publications 541 is used for __________________. a) partnerships b) tax reconciliation c) corporations d) employee withholding
a) partnerships
Which of the following ensure the project owner that the contractor will complete the project in accordance wiht the terms of the contract? a) performance bond b) bid bond c) completed operation d) payment bond
a) performance bond
Construction business differs from manufacturing in that a) product price is determined before actual cost is determined. b) there is a deduced need for skill labor c) it is easier to obtain financing d) there is less government regulation.
a) product price is determined before actual cost is determined.
To help with cash flow, one should ________________. a) progress payment b) lawyer c) accountant d) a contract
a) progress payment
What is the primary purpose of licensing? a) protect the health and welfare of the general public b) raise standards of the profession c) discipline contractors d) examine contractors
a) protect the health and welfare of the general public
An employer whose federal payroll tax liability is $1000 quarterly may pay the taxes a) quarterly. b) semi-annually c) annually d) with the corporate tax return
a) quarterly
A contract for which of following types of structures may be subject to recovery from the Transaction Recovery Fund? a) residential only b) residential or commercial c) commercial or industrial only d) any structures
a) residential only
A decision of the local building officials must first appeal to a) the Local Board of Building Code Appeals b) the local building official c) BOCA d) the State Building Code Technical Review Board
a) the Local Board of Building Code Appeals
A contractor with general liability insurance coverage and no riders, with a $500 deductible, deliberately does not follow code requirements on the project. The owner incurs a $1,000 loss when the installation fails. Who is responsible for the owner's loss? a) the contractor is fully responsible b) the owner is fully responsible c) the contractor and insurance company are responsible for $500 each d) the contractor and owner are responsible for $500 each
a) the contractor is fully responsible
In the event that a regulates license has been revoked due to dishonesty, the regulate shall not be eligible to apply for a license until ( ) has been submitted to the Fund. a) the full amount paid from the Board plus interest b) the interest c) the full amount paid from the Board d) the regulate is not required to submit anything to the Fund
a) the full amount paid from the Board plus interest
Where is the Recovery Fund used? a) to pay claimants subject of improper or dishonest conduct of a regulate b) to pay taxes c) to pay bankruptcy d) to pay subcontractors
a) to pay claimants subject of improper or dishonest conduct of a regulate
Typically, which of the following is not a breach of contract? a) using similar materials for an installation b) performs an illegal act c) a party refuses to perform the contract d) preventing the other party from performing obligations
a) using similar materials for an installation
A method that offers some protection from risk of liability is a) verifying subcontractors' insurance coverage b) having employees sign a "Hold Harmless" agreement c) using joint ventures d) having the owner obtain workers' compensation insurance
a) verifying subcontractors' insurance coverage
An individual qualifying for licensure (to be Q.l.), in which a trade related examination is required, MUST a) work for only one employer. b) be an owner c) have a net worth of $15,000 d) be bonded
a) work for only one employer
The maximum claim of a claimant against Fund based upon any unpaid judgment arising out of the improper of dishonest conduct involving one transaction shall bot exceed? a) $15,000 b) $20,000 c) $40,000 d) $10,000
b) $20,000
What is the maximum amount that can be paid out on behalf of a single contractor? a) $120,000 b) $40,000 c) $10,000 d) $20,000
b) $40,000
The Recovery fund shall have a minimum balance of ( ) at all time. a) $40,000 b) $400,000 c) $500,000 d) $300,000
b) $400,000
A verified claim for payment from the Transaction Recovery Fund MUST occur within a MAXIMUM of what period of time from the date the claimant was awarded a final judgment. a) 6 months b) 12 months c) 24 months d) 36 months
b) 12 months
The minimum storage capacity of a sediment basin shall be ( ) cubic yards per acre of drainage area a) 135 b) 134 c) 88 d) 124
b) 134
What is the minimum age for a designated employee? a) 16 b) 18 c) 21 d) 25
b) 18
A license shall expire ( ) years from the last day of the month in which it was issued. a) 4 b) 2 c) 1 d) 3
b) 2
When violations are discovered more than ( ) years after the certificate of occupancy is issued, a notice of violation shall only be issued upon advice from legal counsel. a) 4 b) 2 c) 5 d) 3
b) 2
A contractor is required to submit a renewal within_______ days of the expiration date? a) 20 b) 30 c) 50 d) 180
b) 30
A licensee's name change MUST be reported to the Board within a MAXIMUM of how many days? a) 10 days b) 30 days c) 60 days d) 90 days
b) 30 days
An appeal of a final decision of a county on an erosion control plan MUST be filed within a MAXIMUM of how many days? a) 10 days b) 30 days c) 60 days d) 90 days
b) 30 days
If licensees are notified at the time of renewal that an additional fee for the contractor recovery fund is due, and the licensee does not pay the fee at that time, how much additional time is the licensee given. a) 10 days b) 30 days c) 60 days d) 180 days
b) 30 days
Temporary erosion and sediment control measures MUST be removed within a MAXIMUM of how many days after the final site stabilization? a) 10 days b) 30 days c) 60 days d) 90 days
b) 30 days
Within how many days should be submitted an appeal for construction? a) 50 days b) 30 days c) 21 days d) 90 days
b) 30 days
A designated employee must work a minimum of how many hours for licensed contracting business: a) 24 hours b) 30 hours c) 36 hours d) 40 hours
b) 30 hours
A notification that funds are due is issued, but the funds are not paid. After a second notice, the funds must be pain in ________ days. If there is still no payment, then the license is _________________. a) 45 revoked b) 30, revoked c) 45, suspended d) 30, revoked
b) 30, revoked
A building official MUST issue a certificate of occupancy for a building that meets all the requirements for a certificate within a maximum of how many working days after the certificate was requested? a) 3 b) 5 c) 7 d) 10
b) 5
What is the penalty for filing Form 941 ten days late where there is unpaid tax of $500 due on the Form 941? a) 1 % b) 5 % c) 10 % d) 25%
b) 5 %
After notification by the code official, an application for a permit shall be considered to have been abandoned for _______ months. a) 2 b) 6 c) 9 d) 12
b) 6
Any issued permit shall become invalid if work is not commenced within _______ months after issuance. a) 7 b) 6 c) 3 d) 10
b) 6
How many licensed contractors are on the State Board for Contractors? a) 5 b) 6 (out of 16 total) c) 10 d) 13
b) 6 (out of 16 total)
An erosion control conservation plan needs to be approved within ________________ days. a) 18 days b) 60 days c) 29 days d) 45 days
b) 60 days
A designated employee should be? a) any full time worker b) At least 18 years old, full time employee, has passed required examination c) at least 18 years old and 5 years experienced for Class A d) the owner
b) At least 18 years old, full time employee, has passed required examination
Who is designated to be in charge of a local building department? a) Chief Inspector b) Building Official c) Virginia Department of Housing and Community Development d) County Commission
b) Building Official
Who is responsible for providing Jobsite employees with the address to material safety data sheets a) Project owner b) Employer c) OSHA d) Supplier
b) Empolyer
At least how often must an employer report info on number of employees? (number of new hires in order to meet the Child Support Enforcement Act) a) Quarterly b) Every week c) Every 2 months d) Every month
b) Every week
At LEAST how often MUST Federal payroll tac deposit be made by an employer whose accumulated liability is $5,000 quarterly. a) Weekly b) Monthly c) Quarterly d) Annually
b) Monthly
IRS form 941 is used for ______________________. a) Federal unemployment taxes and due. b) Quarterly Federal tax deposits paid due. c) Alien Workers d) Company income
b) Quarterly Federal tax deposits paid due.
What of the following is used to obtain an EIN? a) I-9 b) SS-4 c) W-2 d) W-4
b) SS-4
A surety bond is typically a ( ) party bond a) One b) Three c) Two d) Four
b) Three
What is the required when changing the form of entity from a sole proprietorship to corporations? a) nothing because the licensee is the same b) a new license c) pay the fee only d) take a new exam
b) a new license
Bids should prepare for a) only projects with a request for bid. b) all projects with a scope of work similar to that typically performed by the company c) only those projects whose general conditions are similar to those on projects previously performed by the company d) only those projects on which the company can be competitive with other bidders.
b) all projects with a scope of work similar to that typically performed by the company. Key Topics to REMEMBER: 1. Price 2. Time (Duration) 3. Scope of Work (S.O.W)
For ease in estimating labor costs, work should be grouped by a) type of materials b) amount of materials c) type of activity d) length of activity
b) amount of materials
ABC Contracting is building an addition to a house for Mrs. Smith. Mrs. Smith has paid draws to cover the foundation and framing. the framing materials have been delayed in arriving. rather than sit idle waiting for the materials, ABC decides to apply the funds received for the framing to begin the foundation work on an addition being contracted for another for Mrs. Jones. ABC know when Mrs. jones pays the draw for the foundation completion, ABC can use these funds to pay for the Smith framing materials which should arrive at the same time. This is a) an acceptable business planning. b) an example of misapplication of funds c) okay, as long as all funds are account for properly. d) something that must be approved by the supplier of the framing materials
b) an example of misapplication of funds
Where must a building permit be posted? a) any place, it doesn't matter b) at the building site c) at the architect's office d) at the secretary office
b) at the building site
Where should one set of all approved building documents be kept? a) at the court b) at the building site c) at the owner's house d) at the contractor's house
b) at the building site
Modifications to a contract affect cost, materials, work scope, or estimated completion date shell a) have a reason clearly stated b) be in writing and signed by all parties c) cause a new contract to be written d) be verbally agreed to by parties
b) be in writing and signed by all parties
Modification to a contract affecting cost, materials, work scope, or estimated completion date shall. a) have a reason clearly stated. b) be in writing and signed by all parties. c) cause a new contract to be written. d) be verbally agreed to by parties.
b) be in writing and signed by all parties.
These are all elements of an income statement EXCEPT a) taxes b) cash c) overhead d) insurance
b) cash
ACME builder contracts a cement driveway for Mrs. Bee. During construction, the home owner decides she needs the driveway to be wider to have an easier access to the garage. The contractor agrees to increase the width at an additional cost and Mrs. Bee agrees to pay for the licensee. Once construction has been completed, Mrs. Bee refuses to pay for the increase saying the contractor estimated the contract incorrectly. The homeownership no legal obligation to pay for the increase because the a) contractor failed to properly estimate the cost in the contract. b) contractor failed to prepare a change order to the contract and have the homeowner sign it c) homeowner would not have had easy access to the garage without additional width d) contractor will be able to increase the price on his next job to make up the loss
b) contractor failed to prepare a change order to the contract and have the homeowner sign it.
Which of the following is a TRUE statement about a computerized job cost system? a) it is less cost effective than a manual system. b) cost data is updated regularly. c) it should not be considered by beginning contractors. d) it does not yield timely results.
b) cost data is updated regularly
The typical result of including a higher than usual markup for profit in estimates is a) a higher breakeven point. b) fewer bids awarded. c) better inventory control. d) fewer estimating costs.
b) fewer bids awarded.
The Board can refuse to renew a license when the principal owner is a former owner or officer of a firm that a) ceased operation within the previous 12 month. b) had its contractor license revoked. c) had an out-of-state address d) did not employ tradesmen.
b) had its contractor license revoked
An owner makes a progress payment to the contractor one day later than originally called for by the contract. the contractor decides to abandon the job without completing it. The contractor probably a) is legally justified b) has committed a material breach of the contract. c) should have obtained a lien against the property d) should have requested change order.
b) has committed a material breach of the contract.
An advantage of keeping inventory levels as low as possible is a) decreasing transportation time. b) minimizing working capitol needs c) reducing labor cost d) increasing float time.
b) minimizing working capitol needs.
Fast-track construction typically includes a) a complete set of plans prior to initial bidding. b) multiple prime contractors. c) a complete set of specifications prior to starting the work. d) a cost plus contract.
b) multiple prime contractors.
According to the owner's final choices, the cost of work for which an allowance had been given, would exceed the amount of the allowance in the contract. The contractor should a) complete the work and invoice for the extra amount b) obtain a written change order c) do the work as originally specified d) specify an alternate
b) obtain a written change order
A contract calls for liquidated damages of $500 per day. The project was completed five days late because it was delayed by rain. the completion would have been ten days earlier if it were not for the rain delay. There was a $500 bonus per day for the contractor for early completion. No extension of time was requested or granted. How much does the contractor earn or owe? a) earn $2,500 b) owe $2,500 c) nothing d) earn $5,000
b) owe $2,500
To whom should a stop work order be given? a) any person b) owner, owner's agent or the person doing the work c) contractor only d) owner only
b) owner, owner's agent or the person doing the work
Fees paid by the contractor to the Contractors Transaction Recovery Fund may be used for: a) board expenses b) payment to claimants c) department expenses d) punitive damage
b) payment to claimants
The MOST important reason for thoroughly understanding contracts is to a) Resolve disputes b) Prevent disputes c) Evaluate an offer d) Ensure adherence to code.
b) prevent disputes
A contractor is performing repairs in housing built before 1978. the repair will include the replacement of a 4' x 8' area of repaired drywall. The contractor MUST a) obtain a permit from the EPA. b) provide the EPA lead pamphlet to an adult occupant. c) provide respirators to the occupants d) dispose of the replaced drywall is a landfill
b) provide the EPA lead pamphlet to an adult occupant.
IRS Form 941 is used for reporting a) Federal unemployment taxes paid and due. b) quarterly Federal tax deposits paid and due c) alien workers d) company income
b) quarterly Federal tax deposits paid and due
A quality assurance program can result in all of the following benefits EXCEPT a) reduced costs. b) reduced theft losses c) quicker completion time d) better company success
b) reduced theft losses
A company's workforce consisting of employees who are NOT members of a union a) refuses employment to a union member. b) refuses to permit a union's solicitation of employee's during work hours. c) enter into an agreement that requires employees to join a union. d) terminates any employee who joins a union
b) refuses to permit a union's solicitation of employee's during work hours.
A business which is owned by two %50 owners and is to be operated as ABC home building, Inc is REQUIRED to a) prepare a partnership agreement b) register the business name with the State Corporation Commissions (SCC) c) obtain business continuation insurance. d) designate a limited partner
b) register the business name with the State Corporation Commissions (SCC)
The percentage of completion method of accounting/ a) yields more misleading financial information than completed contract method. b) relies on accurate estimates c) does not match revenue with expenses d) should be used only for short-term projects.
b) relies on accurate estimates.
The REQUIRED quality for a project is typically described in the a) budget b) specifications c) plans d) general conditions
b) specifications
Which of the following is the MOST reliable estimating method for building construction? a) conceptual b) take-off c) unit price d) square foot
b) take-off
The application for licensure MUSST include: a) an statement that all Board of Health regulations will be complied with. b) the business address of the proposed designated employee c) a certified disclosure of any misdemeanor or felony convictions d) the contractor's federal employer identification number.
b) the business address of the proposed designated employee
Which of the following is an advantage of a sole proprietorship? a) There is limited liability for business debts. b) the business can be sold at will. c) It protects business property for beneficiaries. d) It conducts business as a separate legal entity.
b) the business can be sold at will.
A ______________ is used when an owner contracts with one company to complete the construction process from start to finish and purchase land. a) design/build b) turnkey c) fast-track d) single prime
b) turnkey
When is a renewal a reinstatement application considered received by the board? a) When it's mailed b) When the application and fees are received by the board c) When it is post marked d) when the check for the fee is cleared by the bank
b) when the application and fees are received by the board
Each applicant shall be assessed ( ) which is to be placed in the Contractor Transaction Recovery Fund. a) $75 b) $50 c) $25 d) $100
c) $25
What is the maximum amount a single contractor's Transaction Recovery Fund claim against a licensee can be? a) $20,000 b) $400,000 c) $40,000 d) $120,000
c) $40,000
What is the maximum fund allowed for a single contractor (per biennium)? a) $20,000 b) $7,500 c) $40,000 d) $400,000
c) $40,000
Contractors will be assessed a fee for the Transaction Recovery Fund in event the fund balance falls below: a) $100,000 b) $250,000 c) $400,000 d) $500,000
c) $400,000
Minimum wage is set at __________ per hour. a) $6.15 b) $6.20 c) $7.25 d) $5.20
c) $7.25
If a contractor earns more than $___________ per year, then the contractor requires a Class A license. a) $120,000 b) $7,500 c) $750,000 d) $150,000
c) $750,000
Disturbed land areas of less than _______ square feet in size may not be an issue of erosion and sediment control. a) 20,000 b) 45,000 c) 10,000 d) 1,500
c) 10,000
A license was issued on 10/15/2021. The expiration date is ____________ a) 10/15/2022 b) 10/01/2022 c) 10/31/2022 d) 11/01/2022
c) 10/31/2022
ADA applies to employers that employ a) 3 employees b) 10 employees c) 15 employees d) 25 employees
c) 15 employees
Two crews can complete a job in 40 hours. If five crews do the same job, in how many hours will they complete the job? a) 100 hours b) 18 hours (2.2 days) c) 16 hours (2 days) d) 14 hours. (1.8 days)
c) 16 hours (2 days)
Form I-9 must be kept for at least ___________ year(s) from the date of hire. a) 2 b) 4 c) 3 d) 1
c) 3
An appeal of the local building official's decision to refuse to grant a modification to the USBC MUST be made to the LBBCA (local board of building code appeals) within a MAXIMUM of how many days? a) 90 days b) 21 days c) 30 days d) 50 days
c) 30 days
Contractors who are assessed a fee to support the transaction recovery fund MUST pay this fee within how many days from when the assessment fee notice was initially mailed. a) 15 days b) 30 days c) 45 days d) 60 days
c) 45 days
A permit expires if work does not begin within a) 30 days b) 60 days c) 6 months d) 1 year
c) 6 months
What percent of an employee's wages is withheld for Social Security Tax? a) 2.00% b) 2.90% c) 6.25% d) 7.65%
c) 6.25%
The Americans with Disabilities Act (ADA) covers individuals with a) a disabled child b) a broken leg c) AIDS d) no high school diploma
c) AIDS
The W-2 form to the IRS has a filling deadline of a) a) January 31st b) April 15th c) February 28th d) December 31st
c) February 31st
If a claimant is paid from the Transaction Recovery Fund , the Board a) Must suspend d b) Must suspend disciplinary actions arising from incidents for which claimant was paid c) May pay court costs using the fund. d) May pay punitive damages using the fund.
c) May pay court costs using the fund
An offer should typically include all of the following EXCEPT the a) Progress payment b) Completion date. c) Names of the subcontractors. d) List of services to be included
c) Names of the subcontractors.
A contractor does not notify a change of address and so does not receive a timely Notice of Renewal. Who is responsible when the contractor does not renew his license on time? a) USBC b) OSHA c) The Licensed Contractor d) DPOR
c) The Licensed Contractor
Which of the following is an acceptable single document verification for the I-9 Form? a) Driver's license with photo b) Social Security card c) United States passport d) Birth certificates
c) United States passport
If one is to receive earned income credit, one should use which IRS Form? a) W-3 b) W-4 c) W-5 d) W-6
c) W-5
A financial statement that reflects a company's financial situation includes a) a working capital statement b) a statement at cash flows c) a balance sheet d) an income statement
c) a balance statement
Changes to the plans and specifications made before bids are due are called a) change orders b) alternates c) addenda d) submittals
c) addenda
All of the following are components of project management EXCEPT a) scheduling b) quality c) bidding d) safety
c) bidding
Which of the following is included in the company overhead, or general administrative (G & A)? a) permits b) storage facilities c) company insurance d) equipment operation expenses
c) company insurance
A contractor's employee discovers a possible safety hazard at a job site. The employee informs the contractor. Safety regulations do NOT address this particular safety hazard. The contractor should a) notify the owner and request a change order b) notify OSHA c) correct hazard through certified Hazardous Materials contractors d) continue working if no accidents have yet occurred.
c) correct hazards through certified Hazardous Materials contractor
A contractor's employee discovers a possible safety hazard at a job site. The employee informs the contractor. Safety regulations do NOT address this particular safety hazard. The Contractor should . . . a) notify the owner and request a change order b) notify OSHA c) correct the hazard d) continue working if no accidents have yet occurred
c) correct the hazard
Who is responsible for providing safe working conditions for employees? a) project owner b) supervisors c) employer d) OSHA
c) employer
The management team for a limit partnership consists of? a) owner b) board of directors c) general partners d) manager
c) general partners
Revenues less costs of construction equal a) income from operations b) net income c) gross profit d) income before taxes
c) gross profit
All of the following methods can be used to remit Federal payroll taxes except a) making payroll tax payments online. b) including payment with an timely filed quarterly report form. c) including payment with a timely filed company Federal income tax return d) making electronic payments
c) including payment with a timely filed company Federal income tax return
All the following except ________ is an effective means of attracting good employees. a) life insurance b) vision program c) lay off d) retirement program
c) lay off
All but which of the following is an advantage to equipment ownership? a) certain tax benefits b) usually costs are less c) obsolete equipment is returned to the owner d) depreciation
c) obsolete equipment is returned to the owner depreciation
A partnership is required to a) hire a profession manager b) obtain partnership insurance c) obtain a federal tax ID number d) file a business plan
c) obtain a federal tax ID number.
The contractor's property insurance covers damage to a) only the project owner's properly. b) the property of the contractor or his employee. c) only the contractor's property. d) the project owner's property and the contractor's property.
c) only the contractor's property.
Which of the following is not covered under the ADA? a) aids b) alcohol addiction c) paper cut d) drug addiction
c) paper cut
All of the following are required on a written contract EXCEPT a) begin and completion dates b) class of license c) permit numbers d) payment schedule
c) permit numbers
Which of the following usually contracts with a subcontractor? a) owner b) architect c) prime contractor d) inspector
c) prime contractor
Which of the following is permitted to receive awards from the Fund? a) financial or lending institution involved in real estate b) employee of debtor c) property owner d) child of debtor
c) property owner
Weakness of Gantt or bar charts for scheduling is that they do not a) factor in material costs. b) factor is labor costs. c) show the dependency of activities on each other d) show the work done by subcontractors.
c) show the dependency of activities to each other.
An offer normally included all of the following except a) offer dates. b) completion dates. c) subcontractor's name. d) bid price
c) subcontractor's name.
A claim against the Contractor Recovery Trust Fund Shall be paid if due to a) failure to supervise a project. b) a non-licensed individual performing the work c) the licensee's improper or dishonest conduct d) failure to complete work in a timely manner
c) the licensee's improper or dishonest conduct
A contractor transaction recovery fund should be paid if due to a) failure to supervise a project. b) a non-licensed individual. c) the licensee's improper or dishonest conduct. d) failure to complete work in only matter.
c) the licensee's improper or dishonest conduct
A class A or B licensee MUST operate a) listing all partners b) under a company name c) under the name the license was issued d) listing incorporation date
c) under the name the license was issued
What is the maximum fine for beginning land-disturbing activities without an approved erosion sediment control plan and permit when REQUIRED? a) $100 b) $100 per day c) $1,000 d) $1,000 per day
d) $1,000 per day
A firm desiring to be licensed as a Class B contractor MUST have a MINIMUM net worth of a) $1,000 b) $5,000 c) $10,000 d) $15,000
d) $15,000
What is the initial Recovery Fund fee? a) $200 b) $50 c) $0 d) $25
d) $25
How much is the Class A initial license fee? a) $360 b) $235 c) $370 d) $385
d) $385
What is the maximum penalty for a contractor undertaking work without the proper class license? a) $500 fine b) $500 fine plus penalties for a misdemeanor c) $500 per day for each day of violation d) $500 per day for each day of violation plus penalties for a misdemeanor
d) $500 per day for each day of violation plus penalties for a misdemeanor
Under the Miller Act, material suppliers to a sub contractor who is filing a suit against the bond must do so within what period of time after last supplying materials for the subcontractor? a) 60 days b) 120 days c) 6 months d) 1 year
d) 1 year
What is the penalty rate for federal tax deposits that are 30 days late? a) no penalty b) 2 % c) 5 % d) 10 %
d) 10 %
All contractors with a minimum of HOW MANY employees must comply with OSHA record-keeping and reporting requirements? a) 1 employee b) 3 employees c) 5 employees d) 11 employees
d) 11 employees
Documents related to a contract should be kept for _____ years. a) 1 b) 3 d) 4 c) 5
d) 5
What is the Virginia corporate income tax rate before modifications, credit, or adjustment? a) 6.2% b) 1.45% c) 7.65% d) 6.0%
d) 6.0%
An erosion control conservation specification needs to be approved within ______ days. a) 45 b) 22 c) 77 d) 60
d) 60
THe BEST source guidelines for the Federal payroll reporting and deposit requirements is the a) Small Business Administration b) Home Builder's Association c) Contractor's accountant d) Internal Revenue Service Circular E.
d) Internal Revenue Service Circular E.
An income statement includes all except: a) G & A expenses b) Interest Income c) Direct costs d) Inventories
d) Inventories
The MOST accurate source for estimating hours to perform a task is a) Manufacturer's specifications. b) Payroll records c) Plans and Specifications d) Job cost records
d) Job cost records
When may a license be transferred? a) When a corporation's name changes b) when a corporation is dissolved c) When the designated employee remains the same d) Never
d) Never
A major purpose of tracking costs is because ________________ can indicate a possible problem. a) under runs b) Profit c) Cutting corners d) Overruns
d) Overruns
A new building may be used for its intended purpose only after a) all liens have been satisfied b) all inspections have been completed c) all disturbed areas have been stabilized d) a certificate of occupancy as been issued
d) a certificate of occupancy as been issued
All of the following employees must be licensed EXCEPT a) one who contracts to superintend a construction project b) one who contracts to superintend a repair project. c) a building demolition and removal contractor d) a material supplier who advises a contractor
d) a material supplier who advises a contractor
Who may make a claim for payment from the contractors Recovery Trust Fund? a) an insurer b) an employee of the licensee c) a subcontractor who contracted with the licensee d) a property owner who contracted with the licensee
d) a property owner who contracted with the licensee
All of the following are possible causes of going over budget on a project EXCEPT a) mismanagement b) theft c) bad estimating d) accurate accounting
d) accurate accounting
A new building may be used for its intended purpose only after a) all aliens have been satisfied b) all inspections have been completed c) all disturbed area has been stabilized d) all certificates of occupancy have been issued
d) all certificates of occupancy have been issued.
Liquidated damages are contractual clauses that call for a) a penalty for work not performed in accordance with the plans and specifications. b) a penalty for delays caused by the weather c) an amount to be paid if the owner causes a delay in the completion of the work. d) an amount to be paid if the contractor does not finish the job on time.
d) an amount to be paid if the contractor does not finish the job on time.
Liquidated damages are contractual clauses that call for a) a penalty for work not performed in accordance with the plans and specifications. b) a penalty for delays caused by the weather. c) an amount to be paid if the owner causes a delay in the completion of the work. d) an amount to be paid if the contractor does not finish the job on time.
d) an amount to be paid if the contractor does not finish the job on time.
On MOST large construction projects, which typically certifies to the owner that progress payments should be made? a) general contractor b) subcontractor c) inspector d) architect or engineer
d) architect or engineer
A new building may be used after ____________ is issued. a) as build drawing b) canceled billed letter c) certificate of safety by the architect d) certificate of occupancy
d) certificate of occupancy
A business plan for starting a business should include all the following EXCEPT a) competition b) financing c) long-range forecasting d) contract documents competition
d) contract documents
Which of the following is a requirement for a joint venture? a) it is exempt from licensure b) each contracting party of the joint venture must be licensed only. c) The joint venture must be licensed only. d) either the joint venture or each contracting party of the joint venture must be licensed
d) either the joint venture or each contracting party often joint venture must be licensed
A disadvantage of cash basis accounting is that a) income is not recorded until it is earned. b) journals and ledgers are not used. c) financial statements cannot be completed. d) expenses are not matched with revenues.
d) expenses are not matched with revenues.
The time a project component can be delayed without delaying completion of the overall project is known as a) free time b) control time c) critical path time d) float time
d) float time
A subcontractor does NOT provide worker's compensation coverage to employees. Who is liable for providing coverage to the subcontractor's employees? a) employees b) project owner c) subcontractor d) general contractor
d) general contractor
The subcontractor does NOT provide worker's compensation coverage to employees. Who is liable for providing coverage to the subcontractor's employees? a) employees b) project owner c) subcontractor d) general contractor
d) general contractor
Superintendent daily job logs are useful for all of the following EXCEPT a) Settling disputes b) Job scheduling c) safety issues d) quality of workmanship
d) quality of workmanship
Which of the following is included in project overhead? a) Advertising costs b) Equipment rental c) Material delivery charges d) supervisor salaries
d) supervisor salaries
Which of the following is a requirement for a Joint Venture? a) one of the two is a licensed company and will be the managing partner. b) the Joint Venture will engage in work with a net worth of less than $70,000 c) the Joint Venture will register as a foreign company. d) the Joint Venture must have a contractor's license
d) the Joint Venture must have a contractor's license.
Additions to building must comply normally with a) the occupancy code. b) either the current code for new construction or the code that was in effect when the building was originally constructed c) the code that was in effect when the building was originally constructed d) the current code for new constructions.
d) the current code for new constructions.
Bid documents typically include all the following EXCEPT a) instruction to bidders b) a proposal c) special bid forms d) the location of plans and specifications
d) the location of plans and specification
Of the following situations, which one would demonstrate that the worker is an employee? a) the worker has limited supervision b) the worker must have his or own tools c) the worker is not required to be at the site at a given time period d) the worker has expectations the relationship will continue indefinitely
d) the worker has expectations the relationship will continue indefinitely
Where do you go to file an appeal of a violation to the USBC provisions? a) None because there is no appeal b) To OSHA c) to the court d) to the LBBCA (Local Board of Building Code Appeals)
d) to the LBBCA (Local Board of Building Code Appeals)
All are involved in a common construction contract except: a) Fixed price b) Unit price c) Cost price d) Traditional price
d) traditional price