AK Marine Construction Contractor Exam
Questions and Correct Answers
SECTION 1: REGULATORY & LICENSING REQUIREMENTS
(Questions 1-25)
1. Which Alaska agency is primarily responsible for contractor licensing?
• A. Alaska Department of Transportation
• B. Alaska Department of Environmental Conservation
• C. Alaska Department of Commerce, Community, and Economic
Development (DCCED)
• D. Alaska Attorney General's Office
Rationale: Contractor licensing in Alaska is regulated by the Department of Commerce,
Community, and Economic Development (DCCED), specifically through its Division of
Corporations, Business, and Professional Licensing .
2. How often must an Alaska contractor registration be renewed?
• A. Annually
• B. Every two years
• C. Every three years
• D. Every five years
Rationale: Alaska contractor licenses must be renewed every two years . The
Department sends renewal notices, and contractors must provide updated insurance
and bonding documentation.
3. Which specialty contractor trade is recognized under 12 AAC 21.200?
• A. General Contractor
• B. Residential Endorsement
• C. Handyman Contractor
• D. Marine Contractor
,Rationale: Under 12 AAC 21.200, "Marine Contractor" is specifically listed as a
recognized specialty contractor trade in Alaska .
4. What is the primary purpose of a contractor's license in Alaska?
• A. To guarantee project profits
• B. To ensure compliance with building codes and regulations
• C. To eliminate the need for permits
• D. To bypass local inspections
Rationale: A contractor's license ensures that individuals meet minimum competency
standards and comply with state and local building codes, safety regulations, and legal
requirements .
5. What is the surety bond requirement for a Specialty Contractor (including
Marine Contractor) in Alaska?
• A. $5,000
• B. $10,000
• C. $20,000
• D. $25,000
Rationale: Specialty contractors, including Marine Contractors, are required to have a
$10,000 surety bond in Alaska .
6. What is the minimum general liability insurance requirement for property
damage in Alaska?
• A. $10,000
• B. $20,000
• C. $50,000
• D. $100,000
Rationale: Alaska law requires at least $20,000 coverage for damage to property .
7. What is the minimum general liability insurance requirement for injury
(including death) to one person?
• A. $20,000
• B. $25,000
• C. $50,000
• D. $100,000
,Rationale: Alaska law requires at least $50,000 coverage for injury (including death) to
any one person .
8. What is the minimum general liability insurance requirement for injury
(including death) to more than one person?
• A. $50,000
• B. $75,000
• C. $100,000
• D. $150,000
Rationale: Alaska law requires at least $100,000 coverage for injury (including death) to
more than one person .
9. What is the purpose of a contractor bond?
• A. To guarantee project completion
• B. To protect consumers from contractor violations
• C. To insure employee injuries
• D. To set construction prices
Rationale: Contractor bonds provide financial protection to consumers for damages
caused by contractor violations and ensure contractors meet their contractual
obligations .
10. Which document defines the legal relationship between owner and contractor?
• A. Building permit
• B. Contract agreement
• C. Bond certificate
• D. Business license
Rationale: The contract agreement establishes rights, duties, and obligations of both
parties .
11. What is a "change order"?
• A. A cancellation of the contract
• B. A modification to the original contract
• C. A payment application
• D. A warranty document
Rationale: A change order modifies the scope, cost, or time of the original contract .
, 12. Which Alaska agency is responsible for building permits and code
enforcement?
• A. The State of Alaska directly
• B. Local municipalities
• C. The US Army Corps of Engineers
• D. The Alaska Department of Labor
Rationale: Building permits are typically issued and enforced by local municipalities, not
the state, in Alaska.
13. What is the primary purpose of a business license in Alaska?
• A. To regulate construction quality
• B. To authorize business operations
• C. To certify technical skills
• D. To approve building plans
Rationale: A business license legally authorizes a company to operate in Alaska .
14. What is typically required before a contractor can begin work on most
construction projects?
• A. Verbal approval from the owner
• B. A signed contract only
• C. A valid building permit
• D. Completion of work
Rationale: Most construction projects require an approved building permit before work
begins to ensure compliance with codes and safety standards .
15. Which form of business provides liability protection and pass-through
taxation?
• A. Sole proprietorship
• B. General partnership
• C. Limited Liability Company (LLC)
• D. Corporation only
Rationale: An LLC combines liability protection with pass-through taxation .
16. What is the non-refundable application fee for an Alaska contractor license?
Questions and Correct Answers
SECTION 1: REGULATORY & LICENSING REQUIREMENTS
(Questions 1-25)
1. Which Alaska agency is primarily responsible for contractor licensing?
• A. Alaska Department of Transportation
• B. Alaska Department of Environmental Conservation
• C. Alaska Department of Commerce, Community, and Economic
Development (DCCED)
• D. Alaska Attorney General's Office
Rationale: Contractor licensing in Alaska is regulated by the Department of Commerce,
Community, and Economic Development (DCCED), specifically through its Division of
Corporations, Business, and Professional Licensing .
2. How often must an Alaska contractor registration be renewed?
• A. Annually
• B. Every two years
• C. Every three years
• D. Every five years
Rationale: Alaska contractor licenses must be renewed every two years . The
Department sends renewal notices, and contractors must provide updated insurance
and bonding documentation.
3. Which specialty contractor trade is recognized under 12 AAC 21.200?
• A. General Contractor
• B. Residential Endorsement
• C. Handyman Contractor
• D. Marine Contractor
,Rationale: Under 12 AAC 21.200, "Marine Contractor" is specifically listed as a
recognized specialty contractor trade in Alaska .
4. What is the primary purpose of a contractor's license in Alaska?
• A. To guarantee project profits
• B. To ensure compliance with building codes and regulations
• C. To eliminate the need for permits
• D. To bypass local inspections
Rationale: A contractor's license ensures that individuals meet minimum competency
standards and comply with state and local building codes, safety regulations, and legal
requirements .
5. What is the surety bond requirement for a Specialty Contractor (including
Marine Contractor) in Alaska?
• A. $5,000
• B. $10,000
• C. $20,000
• D. $25,000
Rationale: Specialty contractors, including Marine Contractors, are required to have a
$10,000 surety bond in Alaska .
6. What is the minimum general liability insurance requirement for property
damage in Alaska?
• A. $10,000
• B. $20,000
• C. $50,000
• D. $100,000
Rationale: Alaska law requires at least $20,000 coverage for damage to property .
7. What is the minimum general liability insurance requirement for injury
(including death) to one person?
• A. $20,000
• B. $25,000
• C. $50,000
• D. $100,000
,Rationale: Alaska law requires at least $50,000 coverage for injury (including death) to
any one person .
8. What is the minimum general liability insurance requirement for injury
(including death) to more than one person?
• A. $50,000
• B. $75,000
• C. $100,000
• D. $150,000
Rationale: Alaska law requires at least $100,000 coverage for injury (including death) to
more than one person .
9. What is the purpose of a contractor bond?
• A. To guarantee project completion
• B. To protect consumers from contractor violations
• C. To insure employee injuries
• D. To set construction prices
Rationale: Contractor bonds provide financial protection to consumers for damages
caused by contractor violations and ensure contractors meet their contractual
obligations .
10. Which document defines the legal relationship between owner and contractor?
• A. Building permit
• B. Contract agreement
• C. Bond certificate
• D. Business license
Rationale: The contract agreement establishes rights, duties, and obligations of both
parties .
11. What is a "change order"?
• A. A cancellation of the contract
• B. A modification to the original contract
• C. A payment application
• D. A warranty document
Rationale: A change order modifies the scope, cost, or time of the original contract .
, 12. Which Alaska agency is responsible for building permits and code
enforcement?
• A. The State of Alaska directly
• B. Local municipalities
• C. The US Army Corps of Engineers
• D. The Alaska Department of Labor
Rationale: Building permits are typically issued and enforced by local municipalities, not
the state, in Alaska.
13. What is the primary purpose of a business license in Alaska?
• A. To regulate construction quality
• B. To authorize business operations
• C. To certify technical skills
• D. To approve building plans
Rationale: A business license legally authorizes a company to operate in Alaska .
14. What is typically required before a contractor can begin work on most
construction projects?
• A. Verbal approval from the owner
• B. A signed contract only
• C. A valid building permit
• D. Completion of work
Rationale: Most construction projects require an approved building permit before work
begins to ensure compliance with codes and safety standards .
15. Which form of business provides liability protection and pass-through
taxation?
• A. Sole proprietorship
• B. General partnership
• C. Limited Liability Company (LLC)
• D. Corporation only
Rationale: An LLC combines liability protection with pass-through taxation .
16. What is the non-refundable application fee for an Alaska contractor license?
