Georgia Residential-Basic Contractor
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
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1. Which of the following is required before a residential contractor can
legally work in Georgia?
A. Local business license only
B. Proof of insurance only
C. State license issued by the Georgia State Licensing Board
D. OSHA certification
Rationale: All residential contractors in Georgia must have a state-
issued license from the Georgia State Licensing Board before
performing work.
,2. A contractor discovers underground utilities while excavating. What is
the first step?
A. Continue work cautiously
B. Contact Georgia 811 to mark utilities
C. Notify the client and resume
D. Dig manually to avoid utilities
Rationale: Georgia law requires contacting Georgia 811 to locate
underground utilities before excavation.
3. How long must a contractor maintain records of contracts and
payments?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Rationale: Georgia law requires contractors to maintain records for
three years for auditing and consumer protection.
4. What is the maximum amount of a residential construction contract
that can be performed without a state license?
A. $10,000
B. $2,500
C. $5,000
D. No limit
, Rationale: In Georgia, residential work under $2,500 does not require
a state contractor license.
5. Which insurance is mandatory for Georgia residential contractors?
A. Fire insurance
B. Vehicle insurance
C. General liability insurance
D. Workers’ compensation insurance (for all contractors)
Rationale: Contractors must maintain general liability insurance;
workers’ comp is required only if they have employees.
6. What is the minimum period for a warranty on a newly built home’s
structural components?
A. 6 months
B. 1 year
C. 5 years
D. 10 years
Rationale: Georgia law requires at least a one-year warranty for all
newly constructed homes.
7. Which of the following best describes a lien?
A. A type of loan
B. A legal claim against property for unpaid work or materials
C. An insurance policy
D. A zoning restriction
, Rationale: Contractors can file a lien to secure payment for services
or materials provided.
8. When is a contractor required to provide a written contract?
A. Only for projects over $10,000
B. For any verbal agreement
C. For residential projects exceeding $500
D. Never required
Rationale: Georgia law requires written contracts for residential
projects over $500.
9. Which of the following is NOT a responsibility of a residential
contractor?
A. Ensuring work meets code
B. Supervising subcontractors
C. Inspecting client’s plumbing before starting
D. Maintaining safety on site
Rationale: Inspecting existing plumbing is typically the responsibility
of the plumber, not the general contractor.
10. Which of these is considered an acceptable method of payment
according to Georgia contractor law?
A. Cash only
B. Cash, check, or credit card
C. Barter only
D. Cryptocurrency only
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following is required before a residential contractor can
legally work in Georgia?
A. Local business license only
B. Proof of insurance only
C. State license issued by the Georgia State Licensing Board
D. OSHA certification
Rationale: All residential contractors in Georgia must have a state-
issued license from the Georgia State Licensing Board before
performing work.
,2. A contractor discovers underground utilities while excavating. What is
the first step?
A. Continue work cautiously
B. Contact Georgia 811 to mark utilities
C. Notify the client and resume
D. Dig manually to avoid utilities
Rationale: Georgia law requires contacting Georgia 811 to locate
underground utilities before excavation.
3. How long must a contractor maintain records of contracts and
payments?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Rationale: Georgia law requires contractors to maintain records for
three years for auditing and consumer protection.
4. What is the maximum amount of a residential construction contract
that can be performed without a state license?
A. $10,000
B. $2,500
C. $5,000
D. No limit
, Rationale: In Georgia, residential work under $2,500 does not require
a state contractor license.
5. Which insurance is mandatory for Georgia residential contractors?
A. Fire insurance
B. Vehicle insurance
C. General liability insurance
D. Workers’ compensation insurance (for all contractors)
Rationale: Contractors must maintain general liability insurance;
workers’ comp is required only if they have employees.
6. What is the minimum period for a warranty on a newly built home’s
structural components?
A. 6 months
B. 1 year
C. 5 years
D. 10 years
Rationale: Georgia law requires at least a one-year warranty for all
newly constructed homes.
7. Which of the following best describes a lien?
A. A type of loan
B. A legal claim against property for unpaid work or materials
C. An insurance policy
D. A zoning restriction
, Rationale: Contractors can file a lien to secure payment for services
or materials provided.
8. When is a contractor required to provide a written contract?
A. Only for projects over $10,000
B. For any verbal agreement
C. For residential projects exceeding $500
D. Never required
Rationale: Georgia law requires written contracts for residential
projects over $500.
9. Which of the following is NOT a responsibility of a residential
contractor?
A. Ensuring work meets code
B. Supervising subcontractors
C. Inspecting client’s plumbing before starting
D. Maintaining safety on site
Rationale: Inspecting existing plumbing is typically the responsibility
of the plumber, not the general contractor.
10. Which of these is considered an acceptable method of payment
according to Georgia contractor law?
A. Cash only
B. Cash, check, or credit card
C. Barter only
D. Cryptocurrency only
