Idaho Contractor/Public Works
Examination Practice Questions And
Correct Answers (Verifie
1. An Idaho general contractor holds a valid Idaho Public Works Contractor License.
It subcontracts electrical work valued at $12,000 on a public school project. The
electrical subcontractor is not licensed in Idaho. Under Idaho Code, which statement
best describes the legal consequence for the general contractor?
A. The general contractor is not liable because the subcontractor's license is the
subcontractor's responsibility.
B. The general contractor may be subject to penalties because it subcontracted to an
unlicensed entity, and the subcontract is voidable.
C. The general contractor is protected because the subcontract value is below the $20,000
threshold for specialty licensing.
D. The general contractor must immediately terminate the subcontract but faces no
penalty if the work is corrected.
Answer: B. The general contractor may be subject to penalties because it
subcontracted to an unlicensed entity, and the subcontract is voidable.
Rationale: Idaho Code § 54-1902 requires all contractors, including subcontractors, to be
licensed regardless of subcontract value; hiring an unlicensed subcontractor exposes the
general contractor to penalties and can render the subcontract unenforceable. Options A
and D incorrectly shift responsibility or ignore statutory penalties, while C misstates the
licensing threshold, which applies to registration, not specialty licensure.
Page 1 of 95
,2. A county in Idaho issues an invitation to bid for a public works project estimated at
$250,000. A bidder submits a bid with a 5% bid bond but fails to include the required
5% bid security in the form of a certified check or bond. The county rejects the bid.
The bidder protests, arguing substantial compliance. Which legal principle governs?
A. Substantial compliance applies because the bid was otherwise responsive and the
bond was only 5%.
B. Idaho law requires strict compliance with bid security requirements, and the bid is
nonresponsive.
C. The county must allow the bidder to cure the defect if it is the lowest bidder.
D. The bid is valid if the bidder submits the bond within 24 hours of bid opening.
Answer: B. Idaho law requires strict compliance with bid security requirements, and
the bid is nonresponsive.
Rationale: Idaho public works bidding statutes (e.g., Idaho Code § 67-2805) mandate strict
compliance with bid security requirements; failure to include the required security renders
the bid nonresponsive. Substantial compliance (A) is not recognized for bid security, and
post-bid cure (C, D) is generally not permitted.
Page 2 of 95
,3. A subcontractor on an Idaho public works project has not been paid for work
performed. The subcontractor wants to file a lien against the public property. Which
statement is most accurate regarding lien rights on public works in Idaho?
A. The subcontractor may file a mechanic's lien against the public property because
Idaho lien law applies to all construction.
B. The subcontractor cannot lien public property but may pursue a claim against the
payment bond.
C. The subcontractor must file a lien within 90 days of last work and then foreclose.
D. The subcontractor can file a lien only if the public entity consents.
Answer: B. The subcontractor cannot lien public property but may pursue a claim
against the payment bond.
Rationale: Idaho law prohibits mechanic's liens on public property; instead, unpaid
subcontractors must seek recovery under the payment bond required by Idaho Code §
54-1926 or § 67-2805. Options A and C incorrectly apply private lien procedures, and D
misstates the consent requirement.
4. An Idaho public works contract includes a retainage provision of 5%. The
contractor substantially completes the work but disputes a $10,000 backcharge for
defective work. Under Idaho Code, when must the public entity release retainage?
A. Within 30 days of substantial completion, minus any amount in dispute.
B. Within 60 days of final completion, including disputed amounts.
C. Retainage may be withheld indefinitely until all disputes are resolved.
D. Retainage must be released within 30 days of substantial completion only if the
contractor posts a bond.
Answer: A. Within 30 days of substantial completion, minus any amount in dispute.
Rationale: Idaho Code § 67-2806 requires public entities to release retainage within 30
days after substantial completion, except for amounts subject to a good-faith dispute.
Options B and C violate statutory timelines, and D incorrectly conditions release on a
bond.
Page 3 of 95
, 5. A general contractor is bidding on a federal public works project in Idaho that is
subject to Davis-Bacon prevailing wage requirements. The contractor plans to pay
apprentices at 50% of the journeyman rate. Which condition must be met for this to
be compliant?
A. The apprentices must be registered in a bona fide apprenticeship program.
B. The apprentices must have completed at least 2,000 hours of training.
C. The contractor must obtain approval from the Idaho Department of Labor.
D. The apprentices must be paid the full journeyman rate after 6 months.
Answer: A. The apprentices must be registered in a bona fide apprenticeship program.
Rationale: Under Davis-Bacon and Idaho's prevailing wage laws, apprentices may be paid
less than journeyman rates only if they are registered in a bona fide apprenticeship
program. Options B, C, and D are not statutory requirements and misstate compliance
conditions.
6. An Idaho public entity issues a request for proposals (RFP) for a design-build
project. A proposal is rejected because the proposer failed to include a required price
proposal separately. The proposer argues that the RFP did not explicitly state the
separation requirement. Which principle applies?
A. The proposal is nonresponsive because the RFP requirements are mandatory.
B. The entity must accept the proposal because the omission was a minor informality.
C. The proposer can supplement the price proposal after the deadline.
D. The entity must reissue the RFP with clarified instructions.
Answer: A. The proposal is nonresponsive because the RFP requirements are
mandatory.
Rationale: Idaho procurement law requires strict adherence to RFP submission
requirements; failure to separate price proposals as instructed renders the proposal
nonresponsive. Options B and C ignore mandatory requirements, and D is not required
unless the RFP was ambiguous.
Page 4 of 95
Examination Practice Questions And
Correct Answers (Verifie
1. An Idaho general contractor holds a valid Idaho Public Works Contractor License.
It subcontracts electrical work valued at $12,000 on a public school project. The
electrical subcontractor is not licensed in Idaho. Under Idaho Code, which statement
best describes the legal consequence for the general contractor?
A. The general contractor is not liable because the subcontractor's license is the
subcontractor's responsibility.
B. The general contractor may be subject to penalties because it subcontracted to an
unlicensed entity, and the subcontract is voidable.
C. The general contractor is protected because the subcontract value is below the $20,000
threshold for specialty licensing.
D. The general contractor must immediately terminate the subcontract but faces no
penalty if the work is corrected.
Answer: B. The general contractor may be subject to penalties because it
subcontracted to an unlicensed entity, and the subcontract is voidable.
Rationale: Idaho Code § 54-1902 requires all contractors, including subcontractors, to be
licensed regardless of subcontract value; hiring an unlicensed subcontractor exposes the
general contractor to penalties and can render the subcontract unenforceable. Options A
and D incorrectly shift responsibility or ignore statutory penalties, while C misstates the
licensing threshold, which applies to registration, not specialty licensure.
Page 1 of 95
,2. A county in Idaho issues an invitation to bid for a public works project estimated at
$250,000. A bidder submits a bid with a 5% bid bond but fails to include the required
5% bid security in the form of a certified check or bond. The county rejects the bid.
The bidder protests, arguing substantial compliance. Which legal principle governs?
A. Substantial compliance applies because the bid was otherwise responsive and the
bond was only 5%.
B. Idaho law requires strict compliance with bid security requirements, and the bid is
nonresponsive.
C. The county must allow the bidder to cure the defect if it is the lowest bidder.
D. The bid is valid if the bidder submits the bond within 24 hours of bid opening.
Answer: B. Idaho law requires strict compliance with bid security requirements, and
the bid is nonresponsive.
Rationale: Idaho public works bidding statutes (e.g., Idaho Code § 67-2805) mandate strict
compliance with bid security requirements; failure to include the required security renders
the bid nonresponsive. Substantial compliance (A) is not recognized for bid security, and
post-bid cure (C, D) is generally not permitted.
Page 2 of 95
,3. A subcontractor on an Idaho public works project has not been paid for work
performed. The subcontractor wants to file a lien against the public property. Which
statement is most accurate regarding lien rights on public works in Idaho?
A. The subcontractor may file a mechanic's lien against the public property because
Idaho lien law applies to all construction.
B. The subcontractor cannot lien public property but may pursue a claim against the
payment bond.
C. The subcontractor must file a lien within 90 days of last work and then foreclose.
D. The subcontractor can file a lien only if the public entity consents.
Answer: B. The subcontractor cannot lien public property but may pursue a claim
against the payment bond.
Rationale: Idaho law prohibits mechanic's liens on public property; instead, unpaid
subcontractors must seek recovery under the payment bond required by Idaho Code §
54-1926 or § 67-2805. Options A and C incorrectly apply private lien procedures, and D
misstates the consent requirement.
4. An Idaho public works contract includes a retainage provision of 5%. The
contractor substantially completes the work but disputes a $10,000 backcharge for
defective work. Under Idaho Code, when must the public entity release retainage?
A. Within 30 days of substantial completion, minus any amount in dispute.
B. Within 60 days of final completion, including disputed amounts.
C. Retainage may be withheld indefinitely until all disputes are resolved.
D. Retainage must be released within 30 days of substantial completion only if the
contractor posts a bond.
Answer: A. Within 30 days of substantial completion, minus any amount in dispute.
Rationale: Idaho Code § 67-2806 requires public entities to release retainage within 30
days after substantial completion, except for amounts subject to a good-faith dispute.
Options B and C violate statutory timelines, and D incorrectly conditions release on a
bond.
Page 3 of 95
, 5. A general contractor is bidding on a federal public works project in Idaho that is
subject to Davis-Bacon prevailing wage requirements. The contractor plans to pay
apprentices at 50% of the journeyman rate. Which condition must be met for this to
be compliant?
A. The apprentices must be registered in a bona fide apprenticeship program.
B. The apprentices must have completed at least 2,000 hours of training.
C. The contractor must obtain approval from the Idaho Department of Labor.
D. The apprentices must be paid the full journeyman rate after 6 months.
Answer: A. The apprentices must be registered in a bona fide apprenticeship program.
Rationale: Under Davis-Bacon and Idaho's prevailing wage laws, apprentices may be paid
less than journeyman rates only if they are registered in a bona fide apprenticeship
program. Options B, C, and D are not statutory requirements and misstate compliance
conditions.
6. An Idaho public entity issues a request for proposals (RFP) for a design-build
project. A proposal is rejected because the proposer failed to include a required price
proposal separately. The proposer argues that the RFP did not explicitly state the
separation requirement. Which principle applies?
A. The proposal is nonresponsive because the RFP requirements are mandatory.
B. The entity must accept the proposal because the omission was a minor informality.
C. The proposer can supplement the price proposal after the deadline.
D. The entity must reissue the RFP with clarified instructions.
Answer: A. The proposal is nonresponsive because the RFP requirements are
mandatory.
Rationale: Idaho procurement law requires strict adherence to RFP submission
requirements; failure to separate price proposals as instructed renders the proposal
nonresponsive. Options B and C ignore mandatory requirements, and D is not required
unless the RFP was ambiguous.
Page 4 of 95
