Examination Practice Exam 2026 | 100+
Questions & Answers with Detailed
Rationales | Complete Delaware
General Contractor Licensing Exam
Prep, Study Guide, Test Review &
Qualification Preparation
1. What is generally required of a person who wants to engage in business as
a contractor in Delaware?
A. Only a local building permit
B. A Delaware contractor/business license as required by state law
C. Only workers' compensation insurance
D. Only a federal tax identification number
Answer: A Delaware contractor/business license as required by state law
Rationale: Delaware requires persons engaging in the contracting business to
obtain the appropriate state business license, with additional registration and
local requirements potentially applying.
, 2. Under Delaware law, the term "contractor" generally includes which
activity?
A. Only residential construction
B. Only commercial construction
C. Construction, alteration, repair, dismantling, or demolition work involving
improvements to real property
D. Only work performed by corporations
Answer: Construction, alteration, repair, dismantling, or demolition work
involving improvements to real property
Rationale: Delaware's statutory definition of contractor is broad and includes
labor and/or materials connected with construction and related improvement
activities.
3. Does Delaware contractor regulation distinguish between a general
contractor and subcontractor for purposes of the contractor definition?
A. Yes, subcontractors are never contractors
B. No, both can fall within the definition of contractor
C. Only if the subcontract exceeds $100,000
D. Only for public projects
Answer: No, both can fall within the definition of contractor
Rationale: Delaware's definition expressly states that a person can be a
contractor regardless of whether the person is a general contractor or
subcontractor.
4. A Delaware contractor license under the state contractor licensing statute
is generally renewed:
A. Every five years
B. Every three years
C. Annually
D. Only when the contractor changes ownership
,Answer: Annually
Rationale: Delaware contractor licensing requirements provide for annual
renewal, with the license period tied to the state's annual licensing cycle.
5. A contractor preparing to submit a competitive bid exceeding $50,000
should generally:
A. Wait until after award to apply for a business license
B. Initiate the required license application procedure before or in conjunction
with submitting the bid
C. Apply only after construction begins
D. Apply only if the owner requests it
Answer: Initiate the required license application procedure before or in
conjunction with submitting the bid
Rationale: Delaware specifically addresses competitively bid contracts
exceeding $50,000 and requires the licensing procedure to be initiated before or
in conjunction with the bid.
6. Which Delaware agency is associated with contractor business licensing and
gross receipts requirements?
A. Division of Revenue
B. Department of Transportation only
C. Department of Agriculture
D. State Fire Marshal only
Answer: Division of Revenue
Rationale: Delaware contractor licensing and related business tax requirements
are administered through the Division of Revenue.
7. Which additional registration is important for contractors performing
construction services in Delaware?
, A. Delaware Contractor Registration
B. Federal contractor registration only
C. County voter registration
D. State vehicle registration
Answer: Delaware Contractor Registration
Rationale: Delaware's Contractor Registration Act requires covered construction
contractors, including subcontractors and lower-tier subcontractors, to register.
8. Which department administers the Delaware Contractor Registration Act?
A. Department of Labor
B. Department of Agriculture
C. Department of Education
D. Department of State
Answer: Department of Labor
Rationale: The Delaware Contractor Registration Act is contained in Title 19,
Chapter 36, and identifies the Department of Labor as the responsible
department.
9. Which of the following can be considered construction services under
Delaware contractor registration law?
A. Building work
B. Excavation
C. Demolition
D. All of the above
Answer: All of the above
Rationale: Delaware's definition of construction services is broad and includes
building, excavation, demolition, roads, utilities, scaffolding, landscaping, and
numerous other construction activities.
10.What is the primary purpose of a construction contract?