Questions with Answers & Detailed Rationales, Licensing and
Regulatory Compliance, Contract Law, Estimating and Bidding, Cost
Control, Project Management, Construction Scheduling, Site Safety,
Environmental Compliance, Building Methods and Materials,
Insurance, Risk Management & Contractor Licensing Preparation
Domain 1: Licensing, Registration & Regulatory Compliance (Questions 1–30)
Question 1
A general contractor relocates from Oklahoma to Texas and plans to operate in multiple
cities. The contractor asks whether a Texas state-issued general contractor license is
required.
A. Yes, the Texas Department of Licensing and Regulation issues general contractor licenses
statewide
B. No, Texas has no statewide general contractor license; city registration may be required
C. Yes, but only for projects exceeding $50,000
D. No, but a Texas Residential Construction Commission registration is mandatory
Correct Answer: B
Explanation: Texas abolished the TRCC in 2009 and has no statewide GC license. Municipal
registration and trade-specific licenses still apply where required.
Question 2
A contractor is preparing to pull permits for a commercial project in Austin. Which action is
the most important first step to ensure authorization to pull permits?
,A. Contact the Texas Department of Licensing and Regulation for a state GC license
B. Verify registration requirements with the City of Austin and confirm insurance and
bonding compliance
C. Submit the bid and wait for the owner to handle all permitting
D. Obtain a Texas Residential Construction Commission builder registration
Correct Answer: B
Explanation: Austin requires contractor registration through its AB+C Portal before permit
issuance. Municipal requirements vary; always verify locally.
Question 3
A specialty contractor performs HVAC installation on a 40-ton commercial cooling system.
Which Texas license classification permits work on systems of any size?
A. Class B
B. Class A
C. Class C
D. Residential Endorsement
Correct Answer: B
Explanation: A Class A ACR license permits work on any size unit. Class B is limited to 25 tons
cooling and 1.5 million BTU/hr heating.
Question 4
,A contractor applies for a TDLR Air Conditioning and Refrigeration contractor license. How
many months of practical experience are generally required?
A. 24 months
B. 36 months
C. 48 months
D. 60 months
Correct Answer: C
Explanation: TDLR requires 48 months of practical ACR experience under a licensed
contractor within the past 72 months, or equivalent education substitution.
Question 5
A licensed ACR contractor allows their license to expire while continuing to perform
contracting work. What is the primary consequence under Texas rules?
A. The contractor may continue working until a renewal application is filed
B. The contractor may not collect fees or enforce contracts for ACR services performed
without a valid license
C. The contractor faces only a modest late fee with no operational restriction
D. The contractor may work under a probationary period granted automatically
Correct Answer: B
Explanation: A company not employing a licensed ACR contractor when a contract is signed
cannot collect a fee or enforce that contract.
, Question 6
A municipality requires contractor registration. A contractor’s registration lapses for 90 days.
What is the most likely consequence?
A. Automatic renewal with no penalty
B. The contractor may continue working but cannot pull new permits
C. The contractor must reapply as a new applicant and may face penalties for work
performed while unregistered
D. A verbal warning is issued with no further action
Correct Answer: C
Explanation: Most cities treat expired registrations as new applications and may fine
unregistered contracting activity. Working without registration risks fines and permit holds.
Question 7
A contractor is cited for performing work without required local registration. Which entity
typically enforces municipal contractor registration requirements?
A. Texas Department of Licensing and Regulation
B. The local building department or code enforcement authority
C. The Texas Attorney General
D. The Occupational Safety and Health Administration
Correct Answer: B