CSLB C10 TEST 1 120 2026 STUDY GUIDE
REVISION SHEET CORE CONCEPT
BREAKDOWN
◉ Stop notice.
Answer: A document given for the purpose of stopping, intercepting,
or freezing funds that have not yet been paid on a construction
project in an attempt to ensure payment.
◉ What is required to for a stop notice to take effect.
Answer: 20-day preliminary notice must have been sent in order for
a Stop Payment Notice to take effect.
◉ What is a Preliminary notice.
Answer: A preliminary notice is a document sent at the beginning of
a construction job to inform the GC and property owner of their
work on the project. California requires subcontractors and
suppliers to send preliminary notice in order to preserve their right
to file a mechanics lien if they don't receive payment.
◉ What is the purpose of a I-9?.
Answer: A new-hire will fill out an I-9 form to verify their
employment eligibility status..
,◉ DE-1 forum.
Answer:
◉ What is a US-99.
Answer: A record that an entity or person paid you. The payer fills
out the 1099 form and sends copies to you and the IRS. There are
several kinds of 1099 forms.
◉ If an employee quits, wages are due within ___ hours..
Answer: 72
◉ Employment Development Department (EDD).
Answer: California government agency that supports state activities
and benefit programs by collecting and administering employment-
related taxes such as employer-financed unemployment insurance;
also provides other services to employers and employees
◉ Franchise Tax Board.
Answer: CA tax agency that collects and enforces state income tax
assessment and collection. In many situations, the FTB operates
similarly to the IRS.
◉ Internal Revenue Service (IRS).
,Answer: Federal agency responsible for collecting income taxes
◉ Home-Improvement Contract.
Answer: An agreement between the contractor and homeowner that
contains all of the terms of the improvement project. Must adhere to
state laws and spell out each party's responsibilities in detail.
◉ Who does NOT need a California Contractor's State License?.
Answer: Sale or installation of finished products that do not become
a fixed part of the structure.
◉ When must the prime contractor pay a subcontractor?.
Answer: 10-days after Prime-contractor received payment.
◉ Prime contractor.
Answer: Any contractor on a project who has a contract directly with
the owner.
◉ sub-contractor.
Answer: a person such as a plumber or electrician who performs
one part of the entire construction project
◉ Contractors Surety Bond.
, Answer: $12,500.00
◉ How long will the California Contractors State License Board hold
a contractor responsible for observable defects?.
Answer: 4 years
◉ When must a licensed contractor provide their license number?.
Answer: On all contracts, advertising and 20-Day Preliminary
Notices
◉ Responsible Managing Employee.
Answer: Full time employee works at least 32 hours or 80% of
operating time of biz, whichever is less.May be used to qualify for
individual, partnership, or corp license.Never more than 3 licensees
at one time.Can only act as qualifier for 1 license at a time unless
either: 1) other licensee is subsidiary 2) he/she owns at least 20% of
licensee 3) majority of officers/partners of other one also are those
of 1st
◉ State Disability Insurance is paid by.
Answer: Employees only.
REVISION SHEET CORE CONCEPT
BREAKDOWN
◉ Stop notice.
Answer: A document given for the purpose of stopping, intercepting,
or freezing funds that have not yet been paid on a construction
project in an attempt to ensure payment.
◉ What is required to for a stop notice to take effect.
Answer: 20-day preliminary notice must have been sent in order for
a Stop Payment Notice to take effect.
◉ What is a Preliminary notice.
Answer: A preliminary notice is a document sent at the beginning of
a construction job to inform the GC and property owner of their
work on the project. California requires subcontractors and
suppliers to send preliminary notice in order to preserve their right
to file a mechanics lien if they don't receive payment.
◉ What is the purpose of a I-9?.
Answer: A new-hire will fill out an I-9 form to verify their
employment eligibility status..
,◉ DE-1 forum.
Answer:
◉ What is a US-99.
Answer: A record that an entity or person paid you. The payer fills
out the 1099 form and sends copies to you and the IRS. There are
several kinds of 1099 forms.
◉ If an employee quits, wages are due within ___ hours..
Answer: 72
◉ Employment Development Department (EDD).
Answer: California government agency that supports state activities
and benefit programs by collecting and administering employment-
related taxes such as employer-financed unemployment insurance;
also provides other services to employers and employees
◉ Franchise Tax Board.
Answer: CA tax agency that collects and enforces state income tax
assessment and collection. In many situations, the FTB operates
similarly to the IRS.
◉ Internal Revenue Service (IRS).
,Answer: Federal agency responsible for collecting income taxes
◉ Home-Improvement Contract.
Answer: An agreement between the contractor and homeowner that
contains all of the terms of the improvement project. Must adhere to
state laws and spell out each party's responsibilities in detail.
◉ Who does NOT need a California Contractor's State License?.
Answer: Sale or installation of finished products that do not become
a fixed part of the structure.
◉ When must the prime contractor pay a subcontractor?.
Answer: 10-days after Prime-contractor received payment.
◉ Prime contractor.
Answer: Any contractor on a project who has a contract directly with
the owner.
◉ sub-contractor.
Answer: a person such as a plumber or electrician who performs
one part of the entire construction project
◉ Contractors Surety Bond.
, Answer: $12,500.00
◉ How long will the California Contractors State License Board hold
a contractor responsible for observable defects?.
Answer: 4 years
◉ When must a licensed contractor provide their license number?.
Answer: On all contracts, advertising and 20-Day Preliminary
Notices
◉ Responsible Managing Employee.
Answer: Full time employee works at least 32 hours or 80% of
operating time of biz, whichever is less.May be used to qualify for
individual, partnership, or corp license.Never more than 3 licensees
at one time.Can only act as qualifier for 1 license at a time unless
either: 1) other licensee is subsidiary 2) he/she owns at least 20% of
licensee 3) majority of officers/partners of other one also are those
of 1st
◉ State Disability Insurance is paid by.
Answer: Employees only.
