CSLB CA LAW AND BUSINESS EXAM LESSON 5 EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT ANSWERS) A+ GRADE ASSURED
Have a heating starting - CORRECT ANSWER --Note About Extra WorkPand ChangePOrders
From the CSLB "Extra Work and Change Orders become part of the contract once the order is in
andPsigned by prior to the commencement of any work covered by the new change order. -
- CORRECT ANSWER --Prepared in writing
-the Parties
The order must describe the scope of the extra work or change the cost to be or from the
contract, and the effect the order will have on the schedule or progress payments. - - CORRECT
ANSWER -- AddedPor Subtracted
When a customer asks for something not included on the contract... - - CORRECT ANSWER -
Do notPdo anything until getting something signed because if you do, they do not have to pay. YouPcanPals
o get in trouble for doing something not on the contract
If another trade damages your work, charge again either - - CORRECT
ANSWER -- the client or other trade contractor, but talk to client first.
Commercial General Liability INS (CGL) should be in a header stating whether - - CORRECT
ANSWER - the ContractorPhas or does not have general liability insurance.
If he/she does have CGL, they must put the info on - - CORRECT ANSWER -Who covers them, and
contact INFO
If the company is self covered - - CORRECT ANSWER -It must be stated
If the company is not covered, they must include - - CORRECT
ANSWER - That they are not covered, must disclose
Workers Compensation INS must be - - CORRECT ANSWER -Written as a header
, If the contractor has no employees then it must be - - CORRECT ANSWER -
stated that they are exempt from workers comp (ROOFING MUST BE COVERED)
If they company does have employees, it must be in this area that - - CORRECT ANSWER -
the Contractor does carry workers comp and all of his employees are covered and insured
ALl legit businesses will ask for proof - - CORRECT ANSWER -Before starting work
Performance of Extra or Change-Order Work Notice is a notice explains to the client that -
- CORRECT ANSWER -
No extra work or change in work can be done unless signed by both parties (Change Order Notice)
If client chooses to change something, CSLB requires this INFO to be put in the new Change Order Notic
e including . - - CORRECT ANSWER --The scope of work encompassed by the order
-The amount to be added or subtracted from the contract
-The effect the order will make in the progress payments or the completion date
If contractors do not get the customers signature on change order then, - - CORRECT
ANSWER - The clients does not have to pay the contractor (Everything gets SIGNED)
Mechanics Lien Warning Must have its own page with - - CORRECT
ANSWER - Heading stating "MECHANICS LIEN WARNING"
Anyone who helps improve your property, but who is not paid, may record a mechanics lien on your prop
erty. A mechanics liens is aP- - CORRECT ANSWER -
Claim, like a mortgage or a home equity loan, made against your property and recorded with the county r
ecorder.
Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to impr
ove your property may record mechanics liens and sue you in court to forclose the lien. If a court finds th
e lien is valid, - - CORRECT ANSWER -
You could be forced to pay twice or have a court officer sell yourPhome to pay the lien. Liens can also aff
ect your credit.
QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT ANSWERS) A+ GRADE ASSURED
Have a heating starting - CORRECT ANSWER --Note About Extra WorkPand ChangePOrders
From the CSLB "Extra Work and Change Orders become part of the contract once the order is in
andPsigned by prior to the commencement of any work covered by the new change order. -
- CORRECT ANSWER --Prepared in writing
-the Parties
The order must describe the scope of the extra work or change the cost to be or from the
contract, and the effect the order will have on the schedule or progress payments. - - CORRECT
ANSWER -- AddedPor Subtracted
When a customer asks for something not included on the contract... - - CORRECT ANSWER -
Do notPdo anything until getting something signed because if you do, they do not have to pay. YouPcanPals
o get in trouble for doing something not on the contract
If another trade damages your work, charge again either - - CORRECT
ANSWER -- the client or other trade contractor, but talk to client first.
Commercial General Liability INS (CGL) should be in a header stating whether - - CORRECT
ANSWER - the ContractorPhas or does not have general liability insurance.
If he/she does have CGL, they must put the info on - - CORRECT ANSWER -Who covers them, and
contact INFO
If the company is self covered - - CORRECT ANSWER -It must be stated
If the company is not covered, they must include - - CORRECT
ANSWER - That they are not covered, must disclose
Workers Compensation INS must be - - CORRECT ANSWER -Written as a header
, If the contractor has no employees then it must be - - CORRECT ANSWER -
stated that they are exempt from workers comp (ROOFING MUST BE COVERED)
If they company does have employees, it must be in this area that - - CORRECT ANSWER -
the Contractor does carry workers comp and all of his employees are covered and insured
ALl legit businesses will ask for proof - - CORRECT ANSWER -Before starting work
Performance of Extra or Change-Order Work Notice is a notice explains to the client that -
- CORRECT ANSWER -
No extra work or change in work can be done unless signed by both parties (Change Order Notice)
If client chooses to change something, CSLB requires this INFO to be put in the new Change Order Notic
e including . - - CORRECT ANSWER --The scope of work encompassed by the order
-The amount to be added or subtracted from the contract
-The effect the order will make in the progress payments or the completion date
If contractors do not get the customers signature on change order then, - - CORRECT
ANSWER - The clients does not have to pay the contractor (Everything gets SIGNED)
Mechanics Lien Warning Must have its own page with - - CORRECT
ANSWER - Heading stating "MECHANICS LIEN WARNING"
Anyone who helps improve your property, but who is not paid, may record a mechanics lien on your prop
erty. A mechanics liens is aP- - CORRECT ANSWER -
Claim, like a mortgage or a home equity loan, made against your property and recorded with the county r
ecorder.
Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to impr
ove your property may record mechanics liens and sue you in court to forclose the lien. If a court finds th
e lien is valid, - - CORRECT ANSWER -
You could be forced to pay twice or have a court officer sell yourPhome to pay the lien. Liens can also aff
ect your credit.
