Contractors license in Arizona Exam
UPDATED QUESTIONS AND CORRECT
ANSWERS
Number of Employees Required for Workers' Compensation - CORRECT
ANSWER More than 1 employee
Penalty for Failing to Identify Underground Utilities - CORRECT ANSWER Fine up
to $5000 for first violation, up to $70000 for subsequent violations
Regulation of Air Pollutants - CORRECT ANSWER Clean Air Act
Applicability of Fair Labor Act - CORRECT ANSWER Applies to employers with 1 or
more employees
Purpose of Form I-9 - CORRECT ANSWER Verify employees' legal immigration
status in the USA
Definition of Project Overhead - CORRECT ANSWER Includes items like bonds,
temporary storage, dumpsters, security guards, porter potties; makes up 5-10% of bid
Overview of Clean Water Act - CORRECT ANSWER Regulates discharges of
pollutants into US waters
Explanation of Current Liabilities - CORRECT ANSWER Liabilities maturing and
payable within 1 year
Retention Period for Immigration Forms - CORRECT ANSWER At least 3 years
, Purpose of Maintenance Bond - CORRECT ANSWER Guarantees no defective
workmanship or material for one year on completed project
Liability Insurance - CORRECT ANSWER To protect against third party claims
Keyman Life Insurance - CORRECT ANSWER To ensure business continuity in case
of death or incapacity
Employee Deductions for Workers' Comp - CORRECT ANSWER Employees do not
pay, employer covers all costs
Form I-9 Completion Timeframe - CORRECT ANSWER Should be completed within
3 days of hire
Retention Period for Lead Pamphlet Receipt - CORRECT ANSWER Must be kept for
3 years
Ownership of Bonds or Cash Deposits - CORRECT ANSWER Under the licensee's
name
Publication Timing Requirement - CORRECT ANSWER Publish within 60 days for 3
consecutive publications
Certification of Project Completion - CORRECT ANSWER Done by the architect or
engineer
Progress Payments Definition - CORRECT ANSWER Partial payments after
completion of construction phases
Single Prime Method Explanation - CORRECT ANSWER Owner hires architect for
design, contractor for work
UPDATED QUESTIONS AND CORRECT
ANSWERS
Number of Employees Required for Workers' Compensation - CORRECT
ANSWER More than 1 employee
Penalty for Failing to Identify Underground Utilities - CORRECT ANSWER Fine up
to $5000 for first violation, up to $70000 for subsequent violations
Regulation of Air Pollutants - CORRECT ANSWER Clean Air Act
Applicability of Fair Labor Act - CORRECT ANSWER Applies to employers with 1 or
more employees
Purpose of Form I-9 - CORRECT ANSWER Verify employees' legal immigration
status in the USA
Definition of Project Overhead - CORRECT ANSWER Includes items like bonds,
temporary storage, dumpsters, security guards, porter potties; makes up 5-10% of bid
Overview of Clean Water Act - CORRECT ANSWER Regulates discharges of
pollutants into US waters
Explanation of Current Liabilities - CORRECT ANSWER Liabilities maturing and
payable within 1 year
Retention Period for Immigration Forms - CORRECT ANSWER At least 3 years
, Purpose of Maintenance Bond - CORRECT ANSWER Guarantees no defective
workmanship or material for one year on completed project
Liability Insurance - CORRECT ANSWER To protect against third party claims
Keyman Life Insurance - CORRECT ANSWER To ensure business continuity in case
of death or incapacity
Employee Deductions for Workers' Comp - CORRECT ANSWER Employees do not
pay, employer covers all costs
Form I-9 Completion Timeframe - CORRECT ANSWER Should be completed within
3 days of hire
Retention Period for Lead Pamphlet Receipt - CORRECT ANSWER Must be kept for
3 years
Ownership of Bonds or Cash Deposits - CORRECT ANSWER Under the licensee's
name
Publication Timing Requirement - CORRECT ANSWER Publish within 60 days for 3
consecutive publications
Certification of Project Completion - CORRECT ANSWER Done by the architect or
engineer
Progress Payments Definition - CORRECT ANSWER Partial payments after
completion of construction phases
Single Prime Method Explanation - CORRECT ANSWER Owner hires architect for
design, contractor for work
