CSLB CA LAW AND BUSINESS EXAM LESSON 5 EXAM QUESTIONS WITH DETAILED VERIFIED

CSLBCALAWAND BUSINESS EXAM LESSON 5 EXAM v v v vv vv vv vv vv




QUESTIONS WITH DETAILED VERIFIED ANSWERS
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(100% CORRECT ANSWERS) A+ GRADE ASSURED
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Have a heating starting: - correct answer-Note About Extra WorkPand ChangePOrders
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From the CSLB "Extra Work and Change Orders become part of the contract once the order is
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andPsigned by prior to the commencement of any work covered by the new change order. -
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correct answer--Prepared in writing
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The order must describe the scope of the extra work or change the cost to be
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contract, and the effect the order will have on the schedule or progress payments. - correct answer--
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AddedPor Subtracted
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When a customer asks for something not included on the contract... - correct answer-
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Do notPdo anything until getting something signed because if you do, they do not have to pay. YouPcanPals o
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get in trouble for doing something not on the contract
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If another trade damages your work, charge again either - correct answer-- the
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client or other trade contractor, but talk to client first.
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Commercial General Liability INS (CGL) should be in a header stating whether - correct answer- the
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ContractorPhas or does not have general liability insurance.
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If he/she does have CGL, they must put the info on - correct answer-Who covers them, and contact INFO
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If the company is self covered - correct answer-It must be stated
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If the company is not covered, they must include - correct answer- That
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they are not covered, must disclose
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Workers Compensation INS must be - correct answer-Written as a header
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, If the contractor has no employees then it must be - correct answer-
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stated that they are exempt from workers comp (ROOFING MUST BE COVERED)
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If they company does have employees, it must be in this area that - correct answer-
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the Contractor does carry workers comp and all of his employees are covered and insured
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ALl legit businesses will ask for proof - correct answer-Before starting work
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Performance of Extra or Change-Order Work Notice is a notice explains to the client that -vv vv vv vv vv vv vv vv vv vv vv vv vv vv vv




correct answer-
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No extra work or change in work can be done unless signed by both parties (Change Order Notice)
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If client chooses to change something, CSLB requires this INFO to be put in the new Change Order Notic e
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including
vv . - correct answer--The scope of work encompassed by the order
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-The amount to be added or subtracted from the contract
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-The effect the order will make in the progress payments or the completion date
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If contractors do not get the customers signature on change order then, - correct answer- The
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clients does not have to pay the contractor (Everything gets SIGNED)
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Mechanics Lien Warning Must have its own page with - correct answer- vv vv vv vv vv vv vv vv vv vv vv




Heading stating "MECHANICS LIEN WARNING"
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Anyone who helps improve your property, but who is not paid, may record a mechanics lien on your prop
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erty. A mechanics liens is aP- correct answer-
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Claim, like a mortgage or a home equity loan, made against your property and recorded with the county r
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ecorder.
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Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to impr
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ove your property may record mechanics liens and sue you in court to forclose the lien. If a court finds th
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e lien is valid, - correct answer-
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You could be forced to pay twice or have a court officer sell yourPhome to pay the lien. Liens can also aff
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ect your credit.
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