1-2% - ANSWER-Bonds can be purchased from bonding companies for ___% of the original contract price.
Bid Bond - ANSWER-This acts as an assurance that
... [Show More] the contractor will be able to complete the job as described in the contract.
Performance Bond or Contract Bond - ANSWER-This guarantees a contractor will complete the project according to the agreed upon terms & conditions.
Payment Bond - ANSWER-This guarantees that subcontractors and suppliers will be paid by the contractor for properly performed work.
$35,000 - ANSWER-Payment Bonds are required for federal government contracts over $__________.
Fidelity Bond - ANSWER-This covers the business owner in case of employee dishonesty or theft.
$15,000 - ANSWER-Contractors must file a contractors bond OR submit a cash deposit with the CSLB for $_______.
$15,000 - ANSWER-The value of a contractors bond must be $________
90 - ANSWER-The contractors bond must be filed with the CLSB within ___ days from the bond effective date.
True - ANSWER-True or False: A contractor must identify their type of insurance when referring to themselves as "bonded" or "insured" in advertisements or publications.
$12,500 (They can be exempt if the RMO can certify ownership of 10% or more of the voting stock in the company.) - ANSWER-A business must submit a separate $________ bond for RMEs or RMOs.
$100,000 - ANSWER-A Limited Liability Surety Bond for $__________ is required in addition to the contractors bond for an LLC license.
Disciplinary Bond - ANSWER-This must be filed with the Registrar after a license has been revoked or denied.
False. It's an additional requirement and may not be filed in place of another bond. - ANSWER-True or False: A Disciplinary Bond can be combined with any other bond.
$15,000 up to 10x the amount of the contractor's bond - ANSWER-The Disciplinary bond amount ranges from _______ to _______, depending on the violation.
2 years - ANSWER-The Disciplinary Bond must be valid & on file with the Registrar for how long?
Within 90 days - ANSWER-How soon should the Disciplinary bond be filed with the CSLB?
C) Stocks or fluctuating investments - ANSWER-All of these are approved alternatives to surety bonds except:
A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
D) Savings & loan investments
E) U.S. government bearer bond
D) All of the above - ANSWER-A license may be suspended if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for the required time period
D) All of the above
Proof of worker's compensation insurance - ANSWER-What must a contractor submit before a contractor's license is issued?
Within 30 days - ANSWER-How soon must an employee provide written notification of an injury to their employer?
$2000
(Increases to $10,000 if a jobsite injury occurs, maxing out at $100,000.) - ANSWER-An employer is fined $_________ per uninsured employee if they don't provide workers comp.
County Recorder - ANSWER-A mechanics lien must be filed with the...
A) Date the funds were due - ANSWER-The mechanics lien must include all of the following details EXCEPT:
A) Date the funds were due
B) The name of the owner
C) Address of the property
D) Work details
E) Amount of money owed
90 days - ANSWER-A mechanics lien can only be fixed within ___ days of the completion of work.
True - ANSWER-True or False: A lawsuit must be filed in addition to a mechanics lien.
One and a quarter time's the amount of the lien - ANSWER-An owner may free a mechanics lien on their property by posting a bond for how much?
60 days, or 30 days for a supplier or subcontractor - ANSWER-If a Notice or Completion is filed, the lien period is decreased to...
Notice of Cessation - ANSWER-A written notice from the owner filed with the County Recorder staring that the work has been terminated and no work has been performed for 30 days prior.
Preliminary Notice - ANSWER-This is sent to prevent situations in which a property owner is unaware of work being performed on their property.
10 days - ANSWER-An owner is required to acknowledge receipt of a preliminary notice within ___ days
Notice of Non-Resonsibility - ANSWER-This is filed when an owner objects to the work detailed in a preliminary notice
States the conditions that must be met before the lien will be released. - ANSWER-What is a conditional lien release?
When a property is released from the mechanics lien regardless of conditions being met. - ANSWER-What is an unconditional release?
Stop Notice - ANSWER-A lien on funds that must be filed within 90 days of work completion
False. It can only be issued by suppliers or subcontractors. - ANSWER-True or False: a prime contractor working on a public works project may issue a stop notice.
After 10 days, but within 90 days of the date the stop notice was given. - ANSWER-When must a lawsuit be filed to complete a Stop Notice?
10-15% - ANSWER-Typical profit from construction jobs
Cost control - ANSWER-A technique used by businesses to compare the actual expenses of a project to the estimated expenses in the bid.
Labor - ANSWER-The largest cost allocation in a job is...
Consideration - ANSWER-When both parties (owner and contractor) give something of value or performance to the other. Ex. The client gives money for the contractor's labor and material.
$10,000 or 10%, whichever is less - ANSWER-Down payments should be limited to...
Home Solicitation Sales Act - ANSWER-This allows the buyer to cancel any transaction over $25 that takes place in buyer's home within 3 days of signing the contract.
Business & Professions Code 7163 - ANSWER-Ensures that a contract is unenforceable in situations where the contractor provides financing, refers the buyer to a lender, or helps them arrange a loan.
3 business days - ANSWER-What's the time limit for a buyer to cancel a contract?
10 days - ANSWER-If a burger cancels a contract, the contractor must return anything paid within what time frame?
10%, 180 days (Price gouging) - ANSWER-A contractor may not offer services priced at more than ___% above the normally charged price for ___ days following a natural disaster or state of emergency.
4 years - ANSWER-How many years do consumers have to file a complaint with the CSLB regarding a faulty project?
4 years - ANSWER-How many years is the contractor liable for patent defects (obvious or visible defects)?
10 years - ANSWER-How many years is the contractor liable for Latent (structural) defects?
4 years - ANSWER-The CSLB has how long to investigate unlicensed contractors from the date of the illegal act?
C) The work must be completed in less than 2 weeks - ANSWER-Which of these does not apply for Service & Repair contracts?
A) Total amount must be for $750 or less
B) The buyer must initiate contact with the contractor
C) The work must be completed in less than 2 weeks
D) No payment is due until the work is completed
Only before the contractor starts work and before they receive/sign the contract. - ANSWER-When can a consumer cancel a Service & Repair contract?
10-pt or larger (Anything regarding CSLB must be 12 or larger) - ANSWER-Unless otherwise specified, how large should font be in contracts?
Within 14 days - ANSWER-According to the Prompt Payment Act, payments for construction projects must be received how long after an invoice has been issued?
7 days - ANSWER-Subcontractors must be paid within ___ days after a prime contractor has received payment.
Lien - ANSWER-A method of securing payments for any unpaid labor or materials that have been used to improve a property by contractors and material suppliers.
Material Breach - ANSWER-A major failure by any party, to perform according to the agreed upon contract terms.
Immaterial Breach or Partial Breach - ANSWER-This violates minor details in a construction contract, and does not affect the overall agreement or void the contract.
90 days - ANSWER-How long does a contractor have to report a small claims or civil court decision to the CSLB?
Appellate Court - ANSWER-If the defendant files an appeal, the lawsuit moves from superior court to...
County Clerk's Office - ANSWER-Small claims are filed at the...
Limited civil lawsuit (filed at the local superior court) - ANSWER-If representation by a lawyer is desired, this is what you should file.
Limited-scope lawyer - ANSWER-Coaching by a lawyer without actual courtroom representation is called...
Unlimited civil cases - ANSWER-Lawsuits for amounts over $25,000
2 to 4 years, depending on the type of claim. 6 months when suing a government or public agency. - ANSWER-The statute of limitations for filing a claim is how long after the event?
Non-binding arbitration - ANSWER-This means both parties are free to request a trial if either party doesn't like the arbitrator's decision.
Once every 10 working days - ANSWER-How often should supervisors conduct toolbox or tailgate safety meetings with their crews?
10 employees - ANSWER-Employers with more than ____ employees are bound by OSHA regulations to have a written emergency plan displayed prominently.
3 working days - ANSWER-How many days does DOSH have to investigate serious violations?
14 calendar days - ANSWER-How many days does DOSH have to investigate non-serious complaints?
February 1 - April 30 - ANSWER-OSHA Form 3A is a summary of the previous year's work-related injuries & illnesses and must be posted in a public space when?
Within 8 hours - ANSWER-When should an employer report an incident that involves an employee being hospitalized, absent due to work-related illness/injury, or if a fatality occurs?
3 working days - ANSWER-How long must a health/safety citation be posted at the place where the violator occurred?
$7,000 - ANSWER-DOSH may fine employers up to $_______ for each safety violation.
Bid shopping - ANSWER-When a prime contractor discloses a subcontractor's bid to the competing subcontractors in an attempt to find a lower bid.
Bid peddling - ANSWER-When a subcontractor whose bid was not selected, approaches the prime contractor of an awarded bid and lowers their price.
Bid rigging - ANSWER-When multiple contractors work together to fix the outcome of an award by artificially raising bid prices.
$100,00 - ANSWER-According to the Miller Act, the bid bond on a federal government project must be furnished on any contract over $_______.
$5,000, or other public works projects valued at more than $25,000. - ANSWER-When bidding on a state public works project valued at more than $_______, the bidder must file two surety bonds prior to the commencement of work. These ensure the contractor can accomplish the job.
1-2% of the contract value - ANSWER-Bond premiums are typically how much?
Listing Law - ANSWER-This requires that public works contractors list their subcontractors by name, office location, and license number at the time of bidding.
D) Will be binding until it expires.
(If it contains a "successor clause" then the collective bargaining agreement is valid for 3 years after the sale or until the agreement expires, whichever is first.) - ANSWER-When the ownership of a company has changed, the collective bargaining agreement:
A) is effective for 1 year
B) is effective for 2 years
C) is effective for 10 years
D) will be binding until it expires
A) Double check the plans for any errors or discrepancies - ANSWER-What is the recommended practice after a contractor receives an approved set of plans?
A) Double check the plans for any errors or discrepancies
B) Have the owner sign off on the plans
C) Start with the construction process
D) Fund the construction project
Pass-through taxation - ANSWER-An advantage of an S-Corporation that allows the owner to report dividends for which they are taxed, but the corporation does not report these earnings.
Double Taxation - ANSWER-C-Corporations are taxes in earnings AND are taxed on dividends distributed by the corporation. This is known as...
Joint venture - ANSWER-When two or more companies join to perform work. They invest their assets or resources to establish a new company or entity where profits & revenue will be shared.
B) After obtaining building permits - ANSWER-When should the project be scheduled?
A) After the bid is accepted
B) After obtaining building permits
C) After the inspector approves the job
D) After meeting with company employees
C) Bar chart - ANSWER-Which of these scheduling techniques is relatively simple and graphically shows the starting and finishing time for individual tasks that make up a job? [Show Less]