California State Contractors License Law and Business Test Study Guide Questions And Answers

©SIRJOEL EXAM SOLUTIONS 2024/2025 ALL RIGHTS RESERVED. California State Contractors License Law and Business Test Study Guide Questions And Answers Who must be licensed as a contractor? - AnswersAnyone who constructs or alters on any job that costs 500 dollars or more. How old do your have to be to get a contractors license. - Answers18 What are the types of licenses issued. - AnswersIndividual, partnership, or corporation licenses. Joint Venture licenses are made up of 2 individual active licenses for a specific purpose. Does California recognize contractors licenses from other states or countries? - AnswersNo What charge is it to contract without a license? - AnswersMisdemeanor, meaning potential jail time, fines and administrative fines Are there educational requirements to obtain a contractors license? - AnswersNo Can technical training and apprenticeship training substitute the required training required for the 4 years needed. - AnswersYes. As long as the applicant has a minimum of 1 year of practical experience. Are all applicants required to submit to a background check? - AnswersYes What are the total fees I must pay to obtain a contractor license? - Answers$480.00. The non- refundable processing fee of $300 and the two year initial license fee of $180. Current fees are printed on the application forms and notices. How often do I have to renew my license? - Answersevery two years Will I receive notice before my active license expires? - AnswersYes. 60 days, but remember it is your responsibility to know and renew without being reminded. What is the active license renewal fee? - Answers$360. You are required to renew every two years. Is there a fee for renewing an active license - Answers$180. Inactive licenses must be renewed how often? - AnswersEvery four years ©SIRJOEL EXAM SOLUTIONS 2024/2025 ALL RIGHTS RESERVED. What is the minimum operating capital that you must have to qualify to be a contractor? - Answers$2500 If you are changing the business name or address, or changing the personnel or business type, how long do you have to notify the state of those changes? - Answers90 days If you change owners or the business entity, changing the license structure, can you renew your license at the end of the year or do you need to apply for a new one. - AnswersApply for a new one. Can your old license be renewed? - AnswersYes. If your license has been expired between 3 to 5 years. Another name for the qualifier. - AnswersThe test-taker. Or the person whom the license is going to be issued. What is the qualifier called if he/she is an individual? - AnswersThe owner What is the qualifier called if he or she is a partner? - AnswersQualifying Partner. What is the qualifier called if he or she is an officer? - AnswersRMO, Responsible Managing Officer What is the qualifier called if he or she is an employee? - AnswersRME, Responsible Managing Employee How many hours is an RME, Responsible Managing Employee required to work. - Answers80% or 32 hours How many licenses can an Owner or Qualifying Partner qualify for at a time. - Answers3 How may licenses can an RME or RMO qualify for at a time? - Answers1 Can you lend your license to someone? - AnswersNo. That would be punishable by law. Can you abandon a project without a legal excuse? - AnswersNo. This would be cause for disciplinary action. It is classified as "Breach of Contract". A contractor is not prohibited from taking and executing a contract involving the use of two or more crafts or trades, if the performance of the work is _____ and supplemental to the primary job. - AnswersIncidental and supplemental to the primary job. Otherwise it must be performed by a sub. Can you use funds from one project to finish another? - AnswersNo. This falls under the category of Larceny and is a misdemeanor or felony. Is it a crime to use false or misleading advertising? - AnswersYes. It is a misdemeanor. What is a joint venture license? - AnswersTwo or more qualifiers of different licenses who seek to combine their licenses and expertise for a specific project. How long is a joint venture valid for? - Answers2 years after first given. ©SIRJOEL EXAM SOLUTIONS 2024/2025 ALL RIGHTS RESERVED. If a QP leaves, what can the remaining party file to get more time? - AnswersA continuance of up to 1 year in order to complete the project. If a QP leaves, the remaining party has __ days to report it to the state. - Answers90 days What must qualifiers do every day regarding to the job site? - Answersvisit the site daily. When must the subcontractors be paid? - Answers7 days after each progress payment by the owner to the direct contractor. ____ is the task of preparing a detailed cost estimate for the job, including material. labor, overhead, as well as the profit or mark-up. - AnswersBidding Materials, labor, permits, loan fees, subs, are all considered what type of costs? - AnswersDirect Costs Office space rent, office supplies, advertising, staff, insurance, and utility bills are considered what type of costs? - AnswersOverhead costs Equipment maintenance, truck maintenance, lubrication, tools, fuel, equipment are considered what type of costs? - AnswersIndirect Costs Written offers from contractors to undertake a construction job in return for a sum of money which can be negotiated, limited or selective competition, or an open competition. - AnswersConstruction bid The 3 essential estimates needed to determine your "mark up" - AnswersGross Income, Overhead expenses, Net profit desired. The industry average for Net profit percentage is... - Answers6% What is the formula for determining "mark up". - AnswersOE + NP = A1...GI - A1= JC...GI / JC = Mark up Where is the best place to look for bidding advice? - AnswersRecent job history. Do sales tax costs need to be included in the bid estimate? - AnswersYes If the subs bid is too low, should you let him know? - AnswersYes, it is ethical and good practice to call the sub and inform him when the bid is too high or low. Should you build against code if the customer insists? - AnswersNo. It is illegal to build against code. Should you bid against other companies or against the job? - AnswersAlways bid against the job. Doing otherwise will cause you troubles in paying subs, materials, and equipment needed. Should you take your time and double check everything before leaving a quote or just get it done quickly? - AnswersTake your time and be critical, ensure you understand all aspects of the plan, walk the job and double check the bid estimate. An agreement with specific terms between two or more people for performance and compensation. - AnswersContract