NASCLA Business Exam Questions with Complete Answers Latest Update 2025-2026 Already Passed
All Class A contractor licensure applications MUST include - Answers information on the knowledge,
skills, and abilities of the applicant.
All of the following must be licensed EXCEPT - Answers a material supplier who advises a contractor.
What is the PRIMARY purpose of licensing? - Answers Protect the health and welfare of the public.
What is the MAXIMUM penalty for a contractor who undertakes work without the proper class of
license? - Answers $500 fine per day for each day of violation plus penalties for a misdemeanor.
When a claimant is paid funds from the Contractors Recovery Trust Fund - Answers the contractor's
license is revoked.
Which of the following is a requirement for a joint venture? - Answers Either the joint venture or each
contracting party of the joint venture must be licensed.
The application for licensure MUST include - Answers the business address of the proposed designated
employee.
How much is the Class A initial license fee not including the Recovery Fund fee? - Answers $360
According to the Board Rules and Regulations, a full-time employee is one who works a MINIMUM of
how many hours per week? - Answers 30 hours.
A firm desiring to be licensed as a Class B contractor MUST have a MINIMUM net worth of - Answers
$15,000.
According to the Board Rules and Regulations, which of the following could be a qualified individual? -
Answers Any full-time employee.
A licensee's name change MUST be reported to the Board within a MAXIMUM of how many days? -
Answers 30 days.
An appeal of the local building official's decision to refuse to grant a modification to the USBC MUST be
made to the local building board within a MAXIMUM of how many days? - Answers 90 days.
Who is to be in charge of a local building department? - Answers Building official.
When MUST the work be stopped following the issuance of a stop work order? - Answers Immediately.
A building official MUST issue a certificate of occupancy for a building that meets all the requirements
for a certificate within a MAXIMUM of how many working days after the certificate was requested? -
Answers 5
Additions to buildings MUST comply with - Answers the current code for new construction.
, A contract for which of the following types of structures may be subject to recovery from the
Transaction Recovery Fund? - Answers Residential only.
Payments made by the Transaction Recovery Fund to claimants may include an amount for - Answers
attorneys' fees.
A verified claim for payment from the Transaction Recovery Fund MUST occur within a MAXIMUM of
what period of time from the date the claimant was awarded a final judgment? - Answers 12 months.
Contractors will be assessed a fee for the Transaction Recovery Fund whenever the fund balance is less
than - Answers $400,000.
Contractors who are assessed a fee to support the Transaction Recovery Fund MUST pay this fee within
a MINIMUM of how many days from when the assessment fee notice was mailed? - Answers 45 days.
Temporary erosion and sediment control measures MUST be removed within a MAXIMUM of how many
days after the final site stabilization? - Answers 30 days.
An appeal of a final decision of a county on an erosion control plan MUST be filed within a MAXIMUM of
how many days? - Answers 30 days.
Which of the following statements about a sole proprietorship is TRUE? - Answers he business, or any
part of it, can be sold, altered, or exchanged at will.
What type of business organization allows people to share financial resources? - Answers Partnership.
Which of the following is a TRUE statement about estimating? - Answers Both overestimating and
underestimating costs could have disastrous consequences.
What should be added to wage rates to ensure accuracy in estimating labor for a project? - Answers
Labor burden.
The two basic laws of construction estimating are - Answers low estimates decrease profits and high
estimates decrease volume.
What MUST be included in an estimate for a job? - Answers Materials, labor, equipment, and overhead
costs.
A contractor should do all of the following when estimating a project EXCEPT - Answers assume ideal
conditions.
Which of the following estimating methods is typically used by the architect rather than the contractor?
- Answers Conceptual estimate.
Equipment needs for a project are BEST estimated by - Answers : calculating the number of hours or
days it is needed.
All Class A contractor licensure applications MUST include - Answers information on the knowledge,
skills, and abilities of the applicant.
All of the following must be licensed EXCEPT - Answers a material supplier who advises a contractor.
What is the PRIMARY purpose of licensing? - Answers Protect the health and welfare of the public.
What is the MAXIMUM penalty for a contractor who undertakes work without the proper class of
license? - Answers $500 fine per day for each day of violation plus penalties for a misdemeanor.
When a claimant is paid funds from the Contractors Recovery Trust Fund - Answers the contractor's
license is revoked.
Which of the following is a requirement for a joint venture? - Answers Either the joint venture or each
contracting party of the joint venture must be licensed.
The application for licensure MUST include - Answers the business address of the proposed designated
employee.
How much is the Class A initial license fee not including the Recovery Fund fee? - Answers $360
According to the Board Rules and Regulations, a full-time employee is one who works a MINIMUM of
how many hours per week? - Answers 30 hours.
A firm desiring to be licensed as a Class B contractor MUST have a MINIMUM net worth of - Answers
$15,000.
According to the Board Rules and Regulations, which of the following could be a qualified individual? -
Answers Any full-time employee.
A licensee's name change MUST be reported to the Board within a MAXIMUM of how many days? -
Answers 30 days.
An appeal of the local building official's decision to refuse to grant a modification to the USBC MUST be
made to the local building board within a MAXIMUM of how many days? - Answers 90 days.
Who is to be in charge of a local building department? - Answers Building official.
When MUST the work be stopped following the issuance of a stop work order? - Answers Immediately.
A building official MUST issue a certificate of occupancy for a building that meets all the requirements
for a certificate within a MAXIMUM of how many working days after the certificate was requested? -
Answers 5
Additions to buildings MUST comply with - Answers the current code for new construction.
, A contract for which of the following types of structures may be subject to recovery from the
Transaction Recovery Fund? - Answers Residential only.
Payments made by the Transaction Recovery Fund to claimants may include an amount for - Answers
attorneys' fees.
A verified claim for payment from the Transaction Recovery Fund MUST occur within a MAXIMUM of
what period of time from the date the claimant was awarded a final judgment? - Answers 12 months.
Contractors will be assessed a fee for the Transaction Recovery Fund whenever the fund balance is less
than - Answers $400,000.
Contractors who are assessed a fee to support the Transaction Recovery Fund MUST pay this fee within
a MINIMUM of how many days from when the assessment fee notice was mailed? - Answers 45 days.
Temporary erosion and sediment control measures MUST be removed within a MAXIMUM of how many
days after the final site stabilization? - Answers 30 days.
An appeal of a final decision of a county on an erosion control plan MUST be filed within a MAXIMUM of
how many days? - Answers 30 days.
Which of the following statements about a sole proprietorship is TRUE? - Answers he business, or any
part of it, can be sold, altered, or exchanged at will.
What type of business organization allows people to share financial resources? - Answers Partnership.
Which of the following is a TRUE statement about estimating? - Answers Both overestimating and
underestimating costs could have disastrous consequences.
What should be added to wage rates to ensure accuracy in estimating labor for a project? - Answers
Labor burden.
The two basic laws of construction estimating are - Answers low estimates decrease profits and high
estimates decrease volume.
What MUST be included in an estimate for a job? - Answers Materials, labor, equipment, and overhead
costs.
A contractor should do all of the following when estimating a project EXCEPT - Answers assume ideal
conditions.
Which of the following estimating methods is typically used by the architect rather than the contractor?
- Answers Conceptual estimate.
Equipment needs for a project are BEST estimated by - Answers : calculating the number of hours or
days it is needed.
