Law & Business (CSLB) Contracting Questions with 100% Complete Answers, A+

The contractor's license number - The most important thing to include when advertising for construction work is Name, business address, and contractor's license number - What must licensed plumbing, electrical sign and well-being contractors have displayed on both sides of their commercial truck? All of the above - If you are advertising, in which of these locations is your license number required? Billboards Bus stop benches Yellow pages advertising all of the above White - What color paint is normally used to mark an excavation area? Stop work immediately at the site, and notify the Coroner - If, during excavation, you unearth human remains or burial artifacts at a construction site, what should you do? A contractor must have a license number to advertise - Which statement is most correct? 1. All advertising must include the contractor's name, address and telephone number; 2. The address of the Contractor's State License Board must be on all advertising; 3. A contractor must have a license number to advertise; 4. A contractor's license number must be on all forms the company prints Profit - Of the following four items to consider when bidding, which is the MOST important? 1. Overhead 2. Labor 3. Material 4. Profit Anticipated legal fees - Which of the following would you NOT include in a bid? 1. Cost of performance bond 2. Labor and material 3. Profit 4. Anticipated legal fees Overhead Costs - When bidding on a home improvement contract, a contractor should include: material costs, labor cost, direct costs, permits, profits and... Assures the accuracy of cost estimates - What is best reason for standardized bidding? Profits above 10% - Which of the following would most likely place a bid out of range from the other bids submitted for a job? The contractor is responsible to complete the work - Your bid on a job was accepted, but you inadvertently left out a part of that job., what should you do? 1. Write a change order and get it signed by the owner 2. Add the additional cost to the end of the job and say nothing 3. Do the omitted portion of the job on a time and materials basis 4. The contractor is responsible to complete the work Bidding against the competition and not the job - What is a common pitfall in bidding? Lower your bid to match other offers - What is not recommended if you are outbid by a lower bidder? Negotiate with the owner to reduce the scope of the work - A contractor is bidding on a project for a homeowner. The homeowner has included several "extra" items upon which to bid. After receiving the bid, the homeowner says it is too high and asks the contractor to lower the price. What should the contractor do? Stick close to your bid even if it means losing the job - A customer wants to accept a bid but does not have enough money. A wise contract decision would be to: Inspect the job personally - When bidding on a job, what is the best way to "assess the job?" 1. Call the planning department 2. Call the architect 3. Call the owner 4. Inspect the job personally There is nothing he can do to recover the additional costs (Overhead is not related to time and material) - If a contractor has a written contract based on "time and material," what should be done to cover an increase in overhead costs? 1. Add the cost to the customer's bill under the material 2. Add the cost to the customer's bill under labor 3. Time and material contracts are inappropriate 4. There is nothing he can do to recover the additional costs