ALABAMA GENERAL CONTRACTOR EXAM | COMPLETE
EXAM WITH ACTUAL QUESTIONS WITH CORRECT
VERIFIED ANSWERS WITH RATIONALES
1. Which of the following is a primary responsibility of a
general contractor?
A. Designing the building
B. Supervising and coordinating all subcontractors
C. Issuing building permits
D. Inspecting municipal utility lines
Correct Answer: B
Rationale: The general contractor manages the
construction process, coordinating subcontractors,
schedules, and project workflow.
2. In Alabama, a general contractor must have which type of
license for residential projects valued over $50,000?
A. Class A license
B. Class B license
C. Class C license
D. Specialty license
Correct Answer: A
,Rationale: Alabama law requires a Class A license for large-
scale residential or commercial projects exceeding a
specific monetary threshold.
3. What is the primary purpose of a performance bond?
A. Guarantee material quality
B. Guarantee project completion according to contract
C. Reduce project taxes
D. Ensure subcontractor compliance
Correct Answer: B
Rationale: A performance bond protects the owner by
ensuring the contractor completes the project per contract
terms.
4. A construction schedule that sequences tasks, identifies
dependencies, and allocates resources is called:
A. Work breakdown structure
B. Critical path method (CPM) schedule
C. Punch list
D. Gantt chart
Correct Answer: B
Rationale: CPM scheduling helps contractors manage
timelines, critical tasks, and resource allocation efficiently.
,5. When is a general contractor liable for OSHA violations
on a construction site?
A. Only if personally performing the unsafe act
B. If responsible for site safety management
C. Only for subcontractors’ actions
D. Never
Correct Answer: B
Rationale: Contractors are responsible for ensuring
workplace safety compliance, even if violations are by
subcontractors, per OSHA “controlling employer” rules.
6. What is the purpose of a retainage in a construction
contract?
A. To pay suppliers directly
B. To ensure the contractor completes all work
satisfactorily
C. To reduce insurance costs
D. To avoid project delays
Correct Answer: B
Rationale: Retainage is withheld until project completion to
ensure quality work and completion.
, 7. Which type of insurance protects the general contractor
against third-party property damage or injury?
A. Workers’ compensation
B. General liability insurance
C. Builder’s risk insurance
D. Professional liability
Correct Answer: B
Rationale: General liability insurance covers third-party
injuries or property damage caused during construction.
8. A subcontractor fails to complete their work on time.
What should the general contractor do first?
A. Terminate the subcontract immediately
B. Notify the owner and proceed with replacement
C. Review the contract and issue a notice to cure
D. Ignore and hope for completion
Correct Answer: C
Rationale: The contractor must follow contract terms,
including giving the subcontractor a chance to remedy
delays.
9. Which document defines the legal scope of work between
the owner and the contractor?
EXAM WITH ACTUAL QUESTIONS WITH CORRECT
VERIFIED ANSWERS WITH RATIONALES
1. Which of the following is a primary responsibility of a
general contractor?
A. Designing the building
B. Supervising and coordinating all subcontractors
C. Issuing building permits
D. Inspecting municipal utility lines
Correct Answer: B
Rationale: The general contractor manages the
construction process, coordinating subcontractors,
schedules, and project workflow.
2. In Alabama, a general contractor must have which type of
license for residential projects valued over $50,000?
A. Class A license
B. Class B license
C. Class C license
D. Specialty license
Correct Answer: A
,Rationale: Alabama law requires a Class A license for large-
scale residential or commercial projects exceeding a
specific monetary threshold.
3. What is the primary purpose of a performance bond?
A. Guarantee material quality
B. Guarantee project completion according to contract
C. Reduce project taxes
D. Ensure subcontractor compliance
Correct Answer: B
Rationale: A performance bond protects the owner by
ensuring the contractor completes the project per contract
terms.
4. A construction schedule that sequences tasks, identifies
dependencies, and allocates resources is called:
A. Work breakdown structure
B. Critical path method (CPM) schedule
C. Punch list
D. Gantt chart
Correct Answer: B
Rationale: CPM scheduling helps contractors manage
timelines, critical tasks, and resource allocation efficiently.
,5. When is a general contractor liable for OSHA violations
on a construction site?
A. Only if personally performing the unsafe act
B. If responsible for site safety management
C. Only for subcontractors’ actions
D. Never
Correct Answer: B
Rationale: Contractors are responsible for ensuring
workplace safety compliance, even if violations are by
subcontractors, per OSHA “controlling employer” rules.
6. What is the purpose of a retainage in a construction
contract?
A. To pay suppliers directly
B. To ensure the contractor completes all work
satisfactorily
C. To reduce insurance costs
D. To avoid project delays
Correct Answer: B
Rationale: Retainage is withheld until project completion to
ensure quality work and completion.
, 7. Which type of insurance protects the general contractor
against third-party property damage or injury?
A. Workers’ compensation
B. General liability insurance
C. Builder’s risk insurance
D. Professional liability
Correct Answer: B
Rationale: General liability insurance covers third-party
injuries or property damage caused during construction.
8. A subcontractor fails to complete their work on time.
What should the general contractor do first?
A. Terminate the subcontract immediately
B. Notify the owner and proceed with replacement
C. Review the contract and issue a notice to cure
D. Ignore and hope for completion
Correct Answer: C
Rationale: The contractor must follow contract terms,
including giving the subcontractor a chance to remedy
delays.
9. Which document defines the legal scope of work between
the owner and the contractor?
