Utah Contractor Exam 2025 Prep Test Bank
With 550 Questions and Correct Answers with
Detailed Rationales/ Utah General Contractor
License Test 2025 Practice Test Bank (Newest!)
What should a contractor do if after starting a home improvement project the
contractor discovers that the details and specifications do NOT correctly show the
existing construction?
a. Stop and work on a correction
b. Stop the job and inform the owner or his agent
c. Continue the work if variations are only minor
d. Stop the job and inform the Building Department
B ... Explanation: Any details and specifications are not represented correctly then
it is the contractor's duty to inform the owner or his agent.
The best way to determine if a contractor is duly licensed?
a. Ask the contractor if he is licensed
b. Look at the contractor's pocket license
c. Ask to see the contractor's license bond
d. Call the Utah Department of Professional Licensing
D ... Explanation: The Utah Department of Professional Licensing has records of
all licensed construction personnel and is the best place to see if someone is
licensed.
A subcontractors bond does what?
a. Protects the owner
b. Protects the general contractor
c. Protects the subcontractor from general contractor
d. None of the above
B ... Explanation: A subcontractors bond protects the general contractor in the
event that the subcontractor does not fully perform the contract.
_________ occurs when the subcontractor approaches the general contractor after
the project was awarded with the intent of lowering the original price on bid day.
pg. 1
,a. Bid Peddling
b. Bid Rigging
c. Bid Shopping
d. None of the above
A...Explanation: Bid Peddling occurs when the subcontractor approaches the
general contractor after the project was awarded with the intent of lowering the
original price on bid day.
Which of the following formulas would you use to determine the total material cost
per unit?
a. Price per Unit + Number of Units Needed = Total Material Unit Cost
b. Price per Unit - Number of Units Needed = Total Material Unit Cost
c. Price per Unit x Number of Units Needed = Total Material Unit Cost
d. Price per Unit x 3 Units Needed = Total Material Unit Cost
C ... Explanation: Price per Unit x Number of Units Needed = Total Material Unit
Cost.
A license may not be reinstated subsequent to action taken under Section 58-1-401
_______ after the action has been taken, unless the division in collaboration with
the appropriate board imposes other conditions.
a. Within 30 days
b. Within 60 days
c. Within 90 days
d. Within 120 days
D ... Explanation: A license may not be reinstated subsequent to action taken under
Section 58-1-401 within 90 days after the action has been taken, unless the division
in collaboration with the appropriate board imposes other conditions.
Current assets compared to current liabilities is commonly known as:
a. Current ratio
b. Current net profit
c. Current assets
d. Current liabilities
A ... Explanation: Current Ratio = Current Assets ÷ Current Liabilities.
A ___________ is needed if an owner wants a contractor to start earlier before the
formalities associated with the signing of the contract can be completed.
pg. 2
,a. Writ of mediation
b. Proviso of estoppel
c. Escape clause
d. Letter of intent
D ... Explanation: A new contract specifying the new time or a letter of intent can
be written if the owner wants the contractor to start work earlier than the indicated
time.
_____ your application is submitted to the D.O.P.L. you must purchase the
required public liability insurance.
a. After
b. Before
c. Both A and B
d. None of the above
B ... Explanation: Before your application is submitted to the D.O.P.L. you must
purchase the required public liability insurance.
Which can be said about fixed expenses?
a. Overhead is generally considered a fixed expense
b. Fixed expenses vary over time
c. Direct labor is generally considered a fixed expense
d. Fixed expenses usually amount to less than 10% of total expenses
A ... Explanation: In this case a fixed expense is considered to be overhead costs.
One way of guaranteeing project completion and correction of defects is by
withholding funds which is also called:
a. Stipulation
b. Retention
c. Umbrage
d. Remainder
B ... Explanation: Retention is the process of not paying in order for the project to
be completed.
_________ defines the total financial resources available to the contractor.
a. Accounting losses
b. Positive financial Ratios
pg. 3
, c. Capitalization
d. Equity
D ... Explanation: Equity defines the total financial resources to the contractor.
When doing several prime contracts in a construction project, the limits of each
prime contract will usually be established in the:
a. Bidding requirements
b. Agreement
c. General conditions
d. Specifications
D ... Explanation: The specifications usually establish limits in the prime contract.
My license was up for renewal, but it expired. Why wasn't I contacted?
a. It is the licensee responsibility to provide current and up to date contact
information
b. All licenses are automatically renewed
c. You failed to request the application for renewal
d. All of the above
A ... Explanation: Approximately two months before the expiration date of the
license, DOPL sends out one notice of license renewal to every licensee holding an
active license. These notices are mailed to each licensee at the address of record as
submitted to DOPL by the licensee. If you fail to notify DOPL directly of a change
in mailing address, there is no guarantee that the notice of renewal will reach you.
It is your responsibility, as a licensee, to maintain a current address with DOPL
and to make sure that the license is renewed before the expiration date. If your
address is incorrect, you will not receive renewal notices or other correspondence.
If more than 0.1 asbestos is discovered in the construction materials, the following
should be done:
a. The crew should try not to disturb the area but keep working
b. The contractor should contact OSHA immediately
c. The workers should stop and remove the materials wearing masks and gloves
d. The crew should wet down the area with water and continue working
B ... Explanation: OSHA should be contacted if more than 0.1 of asbestos is found
in construction materials since they can give further instructions.
pg. 4
With 550 Questions and Correct Answers with
Detailed Rationales/ Utah General Contractor
License Test 2025 Practice Test Bank (Newest!)
What should a contractor do if after starting a home improvement project the
contractor discovers that the details and specifications do NOT correctly show the
existing construction?
a. Stop and work on a correction
b. Stop the job and inform the owner or his agent
c. Continue the work if variations are only minor
d. Stop the job and inform the Building Department
B ... Explanation: Any details and specifications are not represented correctly then
it is the contractor's duty to inform the owner or his agent.
The best way to determine if a contractor is duly licensed?
a. Ask the contractor if he is licensed
b. Look at the contractor's pocket license
c. Ask to see the contractor's license bond
d. Call the Utah Department of Professional Licensing
D ... Explanation: The Utah Department of Professional Licensing has records of
all licensed construction personnel and is the best place to see if someone is
licensed.
A subcontractors bond does what?
a. Protects the owner
b. Protects the general contractor
c. Protects the subcontractor from general contractor
d. None of the above
B ... Explanation: A subcontractors bond protects the general contractor in the
event that the subcontractor does not fully perform the contract.
_________ occurs when the subcontractor approaches the general contractor after
the project was awarded with the intent of lowering the original price on bid day.
pg. 1
,a. Bid Peddling
b. Bid Rigging
c. Bid Shopping
d. None of the above
A...Explanation: Bid Peddling occurs when the subcontractor approaches the
general contractor after the project was awarded with the intent of lowering the
original price on bid day.
Which of the following formulas would you use to determine the total material cost
per unit?
a. Price per Unit + Number of Units Needed = Total Material Unit Cost
b. Price per Unit - Number of Units Needed = Total Material Unit Cost
c. Price per Unit x Number of Units Needed = Total Material Unit Cost
d. Price per Unit x 3 Units Needed = Total Material Unit Cost
C ... Explanation: Price per Unit x Number of Units Needed = Total Material Unit
Cost.
A license may not be reinstated subsequent to action taken under Section 58-1-401
_______ after the action has been taken, unless the division in collaboration with
the appropriate board imposes other conditions.
a. Within 30 days
b. Within 60 days
c. Within 90 days
d. Within 120 days
D ... Explanation: A license may not be reinstated subsequent to action taken under
Section 58-1-401 within 90 days after the action has been taken, unless the division
in collaboration with the appropriate board imposes other conditions.
Current assets compared to current liabilities is commonly known as:
a. Current ratio
b. Current net profit
c. Current assets
d. Current liabilities
A ... Explanation: Current Ratio = Current Assets ÷ Current Liabilities.
A ___________ is needed if an owner wants a contractor to start earlier before the
formalities associated with the signing of the contract can be completed.
pg. 2
,a. Writ of mediation
b. Proviso of estoppel
c. Escape clause
d. Letter of intent
D ... Explanation: A new contract specifying the new time or a letter of intent can
be written if the owner wants the contractor to start work earlier than the indicated
time.
_____ your application is submitted to the D.O.P.L. you must purchase the
required public liability insurance.
a. After
b. Before
c. Both A and B
d. None of the above
B ... Explanation: Before your application is submitted to the D.O.P.L. you must
purchase the required public liability insurance.
Which can be said about fixed expenses?
a. Overhead is generally considered a fixed expense
b. Fixed expenses vary over time
c. Direct labor is generally considered a fixed expense
d. Fixed expenses usually amount to less than 10% of total expenses
A ... Explanation: In this case a fixed expense is considered to be overhead costs.
One way of guaranteeing project completion and correction of defects is by
withholding funds which is also called:
a. Stipulation
b. Retention
c. Umbrage
d. Remainder
B ... Explanation: Retention is the process of not paying in order for the project to
be completed.
_________ defines the total financial resources available to the contractor.
a. Accounting losses
b. Positive financial Ratios
pg. 3
, c. Capitalization
d. Equity
D ... Explanation: Equity defines the total financial resources to the contractor.
When doing several prime contracts in a construction project, the limits of each
prime contract will usually be established in the:
a. Bidding requirements
b. Agreement
c. General conditions
d. Specifications
D ... Explanation: The specifications usually establish limits in the prime contract.
My license was up for renewal, but it expired. Why wasn't I contacted?
a. It is the licensee responsibility to provide current and up to date contact
information
b. All licenses are automatically renewed
c. You failed to request the application for renewal
d. All of the above
A ... Explanation: Approximately two months before the expiration date of the
license, DOPL sends out one notice of license renewal to every licensee holding an
active license. These notices are mailed to each licensee at the address of record as
submitted to DOPL by the licensee. If you fail to notify DOPL directly of a change
in mailing address, there is no guarantee that the notice of renewal will reach you.
It is your responsibility, as a licensee, to maintain a current address with DOPL
and to make sure that the license is renewed before the expiration date. If your
address is incorrect, you will not receive renewal notices or other correspondence.
If more than 0.1 asbestos is discovered in the construction materials, the following
should be done:
a. The crew should try not to disturb the area but keep working
b. The contractor should contact OSHA immediately
c. The workers should stop and remove the materials wearing masks and gloves
d. The crew should wet down the area with water and continue working
B ... Explanation: OSHA should be contacted if more than 0.1 of asbestos is found
in construction materials since they can give further instructions.
pg. 4
