Contractor Practice Exam |
Questions, Verified Answers &
Detailed Rationales |
Complete Contractor License
Exam Prep Study Guide |
Updated 2026
1. What is the primary purpose of a construction
specification?
A. To replace the contract
B. To describe materials, workmanship, and
requirements for the work
C. To establish the contractor's profit
D. To determine payroll taxes
Answer: To describe materials, workmanship, and
requirements for the work
Rationale: Specifications supplement the drawings by
defining required materials, standards, quality,
installation procedures, and workmanship.
2. On a construction drawing, what does a scale of 1/4
inch = 1 foot mean?
A. 1/4 foot on the building equals 1 inch on the drawing
B. 1/4 inch on the drawing represents 1 foot in actual
construction
C. 1 inch represents 1/4 foot
D. 1 foot on the drawing represents 1/4 inch in construction
Answer: 1/4 inch on the drawing represents 1 foot in
actual construction
,Rationale: An architectural scale establishes the
relationship between dimensions shown on the drawing
and actual field dimensions.
3. What is the primary purpose of a construction
schedule?
A. To determine the contractor's license classification
B. To calculate sales tax
C. To coordinate activities, resources, and completion
dates
D. To replace the project specifications
Answer: To coordinate activities, resources, and
completion dates
Rationale: A schedule establishes the planned sequence
and timing of construction activities and helps
coordinate labor, materials, equipment, and
subcontractors.
4. Which document generally establishes the
contractual relationship between an owner and general
contractor?
A. Material safety data sheet
B. Punch list
C. Construction contract
D. Daily report
Answer: Construction contract
Rationale: The construction contract establishes the
parties' obligations, scope, price, schedule, payment
terms, and other contractual requirements.
5. What is the best description of a change order?
A. A contractor's daily work report
B. A building permit
C. A written modification to the contract work, price, or
time
D. A subcontractor invoice
,Answer: A written modification to the contract work,
price, or time
Rationale: A properly authorized change order modifies
the original contract and normally identifies changes to
scope, cost, and/or schedule.
6. Which item is normally included in a contractor's
direct cost?
A. Corporate income tax
B. Labor used directly on the project
C. General advertising
D. Office rent unrelated to the project
Answer: Labor used directly on the project
Rationale: Direct costs can be specifically assigned to a
project, such as project labor, materials, and equipment.
7. What is overhead?
A. Only the cost of concrete
B. Only the contractor's profit
C. General business expenses not directly attributable
to one project
D. The amount paid to a subcontractor
Answer: General business expenses not directly
attributable to one project
Rationale: Office expenses, administrative salaries,
insurance, utilities, and similar business expenses are
typically overhead.
8. A contractor estimates direct project costs at $80,000
and applies a 10% markup. What is the selling price?
A. $80,000
B. $84,000
C. $88,000
D. $90,000
Answer: $88,000
, Rationale: Ten percent of $80,000 is $8,000. Adding the
markup gives a selling price of $88,000.
9. Which type of soil generally provides poor bearing
capacity because it contains decomposed organic
material?
A. Gravel
B. Dense sand
C. Compacted fill
D. Organic soil
Answer: Organic soil
Rationale: Organic soils can compress significantly and
are generally unsuitable as a structural bearing material
unless properly removed, stabilized, or engineered.
10. What is the primary purpose of site grading?
A. To increase paint adhesion
B. To reduce concrete strength
C. To establish required elevations and control drainage
D. To determine electrical voltage
Answer: To establish required elevations and control
drainage
Rationale: Proper grading directs water away from
buildings and establishes elevations required by the
plans.
11. What is a benchmark on a construction site?
A. A temporary fence
B. A known elevation reference point
C. A type of footing
D. A soil classification
Answer: A known elevation reference point
Rationale: Surveyors and contractors use benchmarks
as established reference points when determining
elevations.