CONTRACTORS LICENSE LAW TESTS FINAL
PAPER 2026 COMPLETE QUESTIONS AND
ANSWERS
◉ What is a joint venture license? Answer: Two or more qualifiers of
different licenses who seek to combine their licenses and expertise
for a specific project.
◉ How long is a joint venture valid for? Answer: 2 years after first
given.
◉ If a QP leaves, what can the remaining party file to get more time?
Answer: A continuance of up to 1 year in order to complete the
project.
◉ If a QP leaves, the remaining party has __ days to report it to the
state. Answer: 90 days
◉ What must qualifiers do every day regarding to the job site?
Answer: visit the site daily.
◉ When must the subcontractors be paid? Answer: 7 days after each
progress payment by the owner to the direct contractor.
,◉ ____ is the task of preparing a detailed cost estimate for the job,
including material. labor, overhead, as well as the profit or mark-up.
Answer: Bidding
◉ Materials, labor, permits, loan fees, subs, are all considered what
type of costs? Answer: Direct Costs
◉ Office space rent, office supplies, advertising, staff, insurance, and
utility bills are considered what type of costs? Answer: Overhead
costs
◉ Equipment maintenance, truck maintenance, lubrication, tools,
fuel, equipment are considered what type of costs? Answer: Indirect
Costs
◉ Written offers from contractors to undertake a construction job in
return for a sum of money which can be negotiated, limited or
selective competition, or an open competition. Answer: Construction
bid
◉ The 3 essential estimates needed to determine your "mark up"
Answer: Gross Income, Overhead expenses, Net profit desired.
◉ The industry average for Net profit percentage is... Answer: 6%
, ◉ What is the formula for determining "mark up". Answer: OE + NP
= A1...GI - A1= JC...GI / JC = Mark up
◉ Where is the best place to look for bidding advice? Answer:
Recent job history.
◉ Do sales tax costs need to be included in the bid estimate?
Answer: Yes
◉ If the subs bid is too low, should you let him know? Answer: Yes, it
is ethical and good practice to call the sub and inform him when the
bid is too high or low.
◉ Should you build against code if the customer insists? Answer: No.
It is illegal to build against code.
◉ Should you bid against other companies or against the job?
Answer: Always bid against the job. Doing otherwise will cause you
troubles in paying subs, materials, and equipment needed.
◉ Should you take your time and double check everything before
leaving a quote or just get it done quickly? Answer: Take your time
and be critical, ensure you understand all aspects of the plan, walk
the job and double check the bid estimate.
PAPER 2026 COMPLETE QUESTIONS AND
ANSWERS
◉ What is a joint venture license? Answer: Two or more qualifiers of
different licenses who seek to combine their licenses and expertise
for a specific project.
◉ How long is a joint venture valid for? Answer: 2 years after first
given.
◉ If a QP leaves, what can the remaining party file to get more time?
Answer: A continuance of up to 1 year in order to complete the
project.
◉ If a QP leaves, the remaining party has __ days to report it to the
state. Answer: 90 days
◉ What must qualifiers do every day regarding to the job site?
Answer: visit the site daily.
◉ When must the subcontractors be paid? Answer: 7 days after each
progress payment by the owner to the direct contractor.
,◉ ____ is the task of preparing a detailed cost estimate for the job,
including material. labor, overhead, as well as the profit or mark-up.
Answer: Bidding
◉ Materials, labor, permits, loan fees, subs, are all considered what
type of costs? Answer: Direct Costs
◉ Office space rent, office supplies, advertising, staff, insurance, and
utility bills are considered what type of costs? Answer: Overhead
costs
◉ Equipment maintenance, truck maintenance, lubrication, tools,
fuel, equipment are considered what type of costs? Answer: Indirect
Costs
◉ Written offers from contractors to undertake a construction job in
return for a sum of money which can be negotiated, limited or
selective competition, or an open competition. Answer: Construction
bid
◉ The 3 essential estimates needed to determine your "mark up"
Answer: Gross Income, Overhead expenses, Net profit desired.
◉ The industry average for Net profit percentage is... Answer: 6%
, ◉ What is the formula for determining "mark up". Answer: OE + NP
= A1...GI - A1= JC...GI / JC = Mark up
◉ Where is the best place to look for bidding advice? Answer:
Recent job history.
◉ Do sales tax costs need to be included in the bid estimate?
Answer: Yes
◉ If the subs bid is too low, should you let him know? Answer: Yes, it
is ethical and good practice to call the sub and inform him when the
bid is too high or low.
◉ Should you build against code if the customer insists? Answer: No.
It is illegal to build against code.
◉ Should you bid against other companies or against the job?
Answer: Always bid against the job. Doing otherwise will cause you
troubles in paying subs, materials, and equipment needed.
◉ Should you take your time and double check everything before
leaving a quote or just get it done quickly? Answer: Take your time
and be critical, ensure you understand all aspects of the plan, walk
the job and double check the bid estimate.
