NASCLA Contractors Guide – North Carolina 10th Edition
Latest Update 2026 | Exam Prep | Business, Law & Project
Management Review Guide
1. In North Carolina, the following is exempt from the licensing law EXCEPT:
servicing electrical appliances which are cord and plug connected
services performed for and by public utilities
electric work which is beyond the point of delivery
electric work which is ahead of the point of delivery
2. According to the NC Electrical Contractors Licensing Law, which of the
following best describes a "listed qualified individual"?
a project manager in charge of electrical contractors who are
licensed by the state
a person listed on a company license which has been issued by the
State Electrical Board
none of the above
a person, partnership or firm that regularly employs at least one
qualified individuaterm-180l
3. Describe the role of comprehensive general liability insurance in protecting a
business owner from employee-related damages.
Comprehensive general liability insurance only covers property
damage caused by natural disasters.
Comprehensive general liability insurance does not cover any
employee actions.
Comprehensive general liability insurance is only applicable to
contractors working on residential projects.
, Comprehensive general liability insurance protects business owners
from financial loss due to damages caused by employees while
performing their job duties.
4. Describe why the detailed survey method is considered the most accurate
for estimating in electrical contracting.
The detailed survey method relies on past project costs.
The detailed survey method uses average costs from similar projects.
The detailed survey method provides a comprehensive analysis of
project requirements and costs.
The detailed survey method is quicker than other methods.
5. What is the most accurate method of estimating in electrical contracting?
The historical data method
The rough estimate method
The detailed survey method
The unit cost method
6. Describe why company insurance is classified as a non-overhead expense in
project budgeting.
Company insurance is a fixed cost that does not vary with project
activity.
Company insurance is directly tied to project completion timelines.
Company insurance fluctuates based on the number of employees on
a project.
Company insurance is only applicable to specific projects.
, 7. If a contractor uses electrical equipment that has not been evaluated for
safety and suitability, what potential consequences could arise?
Improved customer satisfaction
Increased risk of accidents and legal liability
Higher profit margins
Faster project completion
8. Owner hires Contractor to re-wire her entire house, an expensive project.
After Contractor completed the work but before Owner paid, Owner
discovered that Contractor was not a licensed and bonded electrician, and
the re-wiring was improperly done in part and will have to be repaired. If
Owner decides not to pay and Contractor sues for breach:
Contractor will prevail, because Owner's breach was willful.
Owner will prevail, because Contractor was not licensed to do
electrical work.
Owner will prevail, because Contractor's performance was imperfect.
Contractor will prevail, because the loss to Contractor and the
windfall to Owner would be too great if Owner was not required to
pay for the benefit received.
9. What is an example of project overhead in electrical contracting?
Employee wages
Material costs
Project management costs
Company Insurance
Latest Update 2026 | Exam Prep | Business, Law & Project
Management Review Guide
1. In North Carolina, the following is exempt from the licensing law EXCEPT:
servicing electrical appliances which are cord and plug connected
services performed for and by public utilities
electric work which is beyond the point of delivery
electric work which is ahead of the point of delivery
2. According to the NC Electrical Contractors Licensing Law, which of the
following best describes a "listed qualified individual"?
a project manager in charge of electrical contractors who are
licensed by the state
a person listed on a company license which has been issued by the
State Electrical Board
none of the above
a person, partnership or firm that regularly employs at least one
qualified individuaterm-180l
3. Describe the role of comprehensive general liability insurance in protecting a
business owner from employee-related damages.
Comprehensive general liability insurance only covers property
damage caused by natural disasters.
Comprehensive general liability insurance does not cover any
employee actions.
Comprehensive general liability insurance is only applicable to
contractors working on residential projects.
, Comprehensive general liability insurance protects business owners
from financial loss due to damages caused by employees while
performing their job duties.
4. Describe why the detailed survey method is considered the most accurate
for estimating in electrical contracting.
The detailed survey method relies on past project costs.
The detailed survey method uses average costs from similar projects.
The detailed survey method provides a comprehensive analysis of
project requirements and costs.
The detailed survey method is quicker than other methods.
5. What is the most accurate method of estimating in electrical contracting?
The historical data method
The rough estimate method
The detailed survey method
The unit cost method
6. Describe why company insurance is classified as a non-overhead expense in
project budgeting.
Company insurance is a fixed cost that does not vary with project
activity.
Company insurance is directly tied to project completion timelines.
Company insurance fluctuates based on the number of employees on
a project.
Company insurance is only applicable to specific projects.
, 7. If a contractor uses electrical equipment that has not been evaluated for
safety and suitability, what potential consequences could arise?
Improved customer satisfaction
Increased risk of accidents and legal liability
Higher profit margins
Faster project completion
8. Owner hires Contractor to re-wire her entire house, an expensive project.
After Contractor completed the work but before Owner paid, Owner
discovered that Contractor was not a licensed and bonded electrician, and
the re-wiring was improperly done in part and will have to be repaired. If
Owner decides not to pay and Contractor sues for breach:
Contractor will prevail, because Owner's breach was willful.
Owner will prevail, because Contractor was not licensed to do
electrical work.
Owner will prevail, because Contractor's performance was imperfect.
Contractor will prevail, because the loss to Contractor and the
windfall to Owner would be too great if Owner was not required to
pay for the benefit received.
9. What is an example of project overhead in electrical contracting?
Employee wages
Material costs
Project management costs
Company Insurance
