CONTRACTOR (CLASS A) EXAMINATION
PRACTICE QUESTIONS WITH ANSWERS AND
RATIONALES
Class A – General Engineering Contractor – Trade Exam Content Areas
Content Area Approximate Weight
1. Planning and Estimating 15–19%
2. Structural Principles 5–6%
3. Earthwork and Surveying 14–15%
4. Subsurface, Surface, and Elevated Piping Work 20–21%
5. Foundation and Concrete Construction 10–11%
6. Buildings, Structures, and Related Work 9%
7. Roadwork and Paving 5%
8. Safety 18%
Class A Scope of Work
,A Class A General Engineering Contractor performs work on fixed works that require
specialized engineering knowledge and skill. This includes:
Irrigation, drainage, water power, water supply, flood control
Highways, streets, roads, railroads, airports
Bridges, overpasses, tunnels, dams
Pipelines, sewers, water treatment plants
Power plants, electrical transmission lines
Harbors, docks, wharves, piers
Levees, flood control works
Heavy industrial plants, steel mills, refineries
Foundations for all of the above
Key Reference Materials
2022 California Building Code (Title 24)
2022 California Electrical Code (Title 24)
2022 California Plumbing Code (Title 24)
California Contractors License Law & Reference Book
OSHA Construction Standards (29 CFR 1926)
PART 1: LAW AND BUSINESS (Questions 1–35)
,Question 1: What is the minimum bond amount required for a California contractor's license?
Answer: $15,000.
Rationale: The CSLB requires contractors to maintain a $15,000 contractor's bond for the
benefit of consumers who are harmed by the contractor's actions. The bond can be used to pay
claims for damages resulting from the contractor's failure to perform work, failure to pay
subcontractors, or other violations. The bond must be issued by an admitted surety insurer. If a
claim is paid against the bond, the contractor must replenish it to the required amount.
Question 2: Under California law, a homeowner has how many business days to cancel a home
improvement contract?
Answer: Three business days.
Rationale: California Civil Code Section 1689.5 gives homeowners three business days to cancel
a home improvement contract without penalty. The contractor must provide the homeowner with
a written notice of this right at the time the contract is signed. The cancellation period begins
when the contract is signed, and the homeowner can cancel by sending a written notice to the
contractor.
, Question 3: A contractor receives a progress payment from the owner. The contractor must pay
their subcontractors:
Answer: Within 10 days of receiving the funds.
Rationale: Under California prompt payment laws (Business and Professions Code Section
7108.5), a prime contractor must pay subcontractors within 10 days of receiving payment from
the owner, unless the subcontract agreement specifies a different timeframe. Failure to pay
subcontractors promptly can result in penalties, interest, and potential license discipline.
Question 4: Which business structure offers pass-through taxation, where profits and losses are
reported on the owners' personal tax returns?
Answer: Partnership, LLC, or S-Corporation.
Rationale: Partnerships, LLCs (unless elected to be taxed as a corporation), and S-Corporations
are pass-through entities, meaning the business itself does not pay federal income taxes. Instead,
profits and losses are "passed through" to the owners' personal tax returns. C-Corporations are
taxed as separate entities and pay corporate income tax, which is then taxed again when
distributed to shareholders as dividends.
Question 5: What is the penalty for acting as a contractor without a license in California?
Answer: A fine of up to $15,000 and potential imprisonment.