Practice Questions And Correct Answers
(Verified A
1. Under Georgia's 'Right to Repair' Act for construction defects, a homeowner must
provide written notice to the contractor before filing suit. If the contractor fails to
respond within the statutory period, what is the primary legal consequence?
A. The contractor forfeits the right to arbitration.
B. The homeowner may immediately file suit without further notice.
C. The contractor is automatically liable for treble damages.
D. The homeowner must file a complaint with the Georgia Secretary of State.
Answer: B. The homeowner may immediately file suit without further notice.
Rationale: Georgia's Right to Repair Act (O.C.G.A. § 8-2-35 et seq.) requires a homeowner
to serve written notice and allow the contractor a specified time to inspect and offer repair.
If the contractor fails to respond within that period, the homeowner is relieved of the
pre-suit notice requirement and may proceed directly to litigation. Options A, C, and D are
incorrect because the Act does not mandate arbitration, automatic treble damages, or
administrative complaints as a consequence of nonresponse.
2. A general contractor is preparing a bid for a public school project in Georgia.
Which of the following is true regarding the required bid bond and performance
bond?
A. A bid bond is required for all public projects over $100,000, and a performance bond
is required for the full contract amount.
B. A bid bond is required only if the project exceeds $1 million, and a performance bond
is optional.
C. A bid bond is not required, but a payment bond is required for projects over $100,000.
D. A bid bond and performance bond are both required only for federal projects, not state
projects.
Answer: A. A bid bond is required for all public projects over $100,000, and a
performance bond is required for the full contract amount.
Rationale: Georgia law (O.C.G.A. § 36-91-1 et seq.) requires a bid bond for public works
projects exceeding $100,000 and a performance bond and payment bond for the full
Page 1 of 87
,contract amount. Options B, C, and D misstate the thresholds or applicability; state
projects also require these bonds, and performance bonds are not optional.
Page 2 of 87
,3. In a critical path method (CPM) schedule, an activity has a total float of 5 days and
a free float of 2 days. If this activity is delayed by 4 days, what is the impact on the
project completion date?
A. The project completion date is delayed by 4 days.
B. The project completion date is delayed by 2 days.
C. The project completion date is not delayed, but the start of subsequent activities is
delayed by 2 days.
D. The project completion date is delayed by 1 day.
Answer: C. The project completion date is not delayed, but the start of subsequent
activities is delayed by 2 days.
Rationale: Total float is the amount an activity can be delayed without delaying project
completion. Free float is the amount it can be delayed without delaying the early start of
any successor. A 4-day delay exceeds free float (2 days) but is within total float (5 days), so
the project completion is not delayed, but successors are delayed by 2 days. Options A, B,
and D incorrectly calculate the impact on project completion.
4. Under OSHA's Focused Inspection Initiative for construction, which of the
following hazards would most likely trigger a focused inspection?
A. Lack of PPE for eye protection.
B. Fall hazards, struck-by, caught-in/between, and electrical hazards.
C. Inadequate recordkeeping of injury logs.
D. Poor housekeeping in material storage areas.
Answer: B. Fall hazards, struck-by, caught-in/between, and electrical hazards.
Rationale: OSHA's Focused Inspection Initiative targets the four leading causes of fatalities
in construction: falls, struck-by, caught-in/between, and electrical hazards. Option A, C,
and D are general safety issues but are not the primary focus of the initiative. The initiative
aims to maximize inspection efficiency by concentrating on these high-risk areas.
Page 3 of 87
, 5. A contractor uses the double-declining balance method to depreciate a $50,000
excavator with a 5-year useful life and $5,000 salvage value. What is the depreciation
expense for the second year?
A. $12,000
B. $10,000
C. $7,200
D. $8,000
Answer: A. $12,000
Rationale: Double-declining rate = (2/5) = 40%. Year 1 depreciation = $50,000 × 40% =
$20,000; book value = $30,000. Year 2 depreciation = $30,000 × 40% = $12,000. Salvage
value is not subtracted initially, but depreciation stops when book value reaches salvage.
Options B, C, and D miscalculate the rate or application.
6. Under Georgia's lien law, a subcontractor who has not been paid by the general
contractor must file a lien within how many days after the completion of the
subcontractor's work?
A. 30 days
B. 60 days
C. 90 days
D. 120 days
Answer: C. 90 days
Rationale: O.C.G.A. § 44-14-361.1 requires a subcontractor to file a lien within 90 days
after the completion of the subcontractor's work or after the subcontractor ceases work.
Options A, B, and D are incorrect timeframes. This deadline is critical for preserving lien
rights.
Page 4 of 87