In California, when do you need a CSLB contractor license for a construction job?
When the job is worth $500 or more in labor and materials combined CSLB says any construction job worth $500 or more, counting labor and materials together, needs a license. Permits and employees don’t change that. You also can’t split a job into smaller parts to stay under $500.
In North Carolina, at what total project cost does a general contractor need a license from the NCLBGC?
$40,000 or more North Carolina requires a general contractor license when the total cost of the project is $40,000 or more. Below that, the state general contractor license isn’t required, though other licenses (like electrical or plumbing) may be.
In California, a homeowner signs a $25,000 home improvement contract. What is the largest down payment the contractor can ask for?
$1,000 California limits a home improvement down payment to $1,000 or 10% of the contract price, whichever is less. 10% of $25,000 is $2,500, and $1,000 is less, so $1,000 is the most. Breaking this rule is a misdemeanor.
Halfway through a job, the owner asks for bigger windows. What’s the best way to handle the extra cost and time?
Get a written change order signed before doing the work A change order is a written agreement that changes the scope, price or schedule after the contract is signed. Getting it signed before the work starts protects both sides. Many states, including California for home improvement work, require changes to be in writing.
What is retainage on a construction contract?
Part of each progress payment held back until the work is complete Retainage (or retention) is a percentage held back from each progress payment, often 5% to 10%. The owner releases it once the job is finished and accepted. It gives the contractor a reason to finish the punch list.
What does a mechanics lien do?
It lets an unpaid contractor or supplier make a claim against the property itself A mechanics lien is a claim against the real property that was improved. It makes the unpaid amount a cloud on the title, and it can lead to a court-ordered sale. Strict notice and deadline rules apply, and they differ by state.
In Florida, a supplier selling to a subcontractor wants to keep its lien rights. By when must it serve a Notice to Owner?
Before starting, or no later than 45 days after first furnishing materials Florida law says the Notice to Owner must be served before starting, or no later than 45 days after starting, to furnish labor, services or materials. It also has to go out before the owner makes final payment. Suppliers to a subcontractor must send a copy to the contractor too.
On a bonded project, who is the payment bond mainly there to protect?
Subcontractors and suppliers who might not get paid A payment bond guarantees that subcontractors, laborers and suppliers get paid. A performance bond is the one that protects the owner if the contractor doesn’t finish. On public jobs, a payment bond often takes the place of lien rights, because you can’t lien public property.
Which is true about the $25,000 California contractor license bond?
It’s a total amount available for claims across all of the contractor’s jobs CSLB says the bond amount isn’t per job. It’s the total available for all the jobs during the life of the bond. It protects people harmed when a contractor breaks license law, not the contractor. You need it for an active license, not an inactive one.
An employee is hurt on the job through their own mistake. Which coverage pays for medical care and lost wages?
Workers’ compensation insurance Workers’ compensation pays for job injuries to employees no matter who was at fault. In return, the employee generally can’t sue the employer for the injury. General liability is for injury or damage to other people and their property.
Under the IRS rules, what matters most in deciding whether a worker is an employee or an independent contractor?
Whether the business has the right to control how the work is done The IRS looks at the whole relationship and the right to direct and control the worker. It groups the evidence into behavioral control, financial control and the type of relationship. A label in a contract doesn’t decide it. Some states, like California, use a stricter test.
A worker you hired leaves after 6 months. How long must you keep their Form I-9?
3 years after the date of hire You keep a Form I-9 for 3 years after the date of hire, or 1 year after employment ends, whichever is later. For someone who worked 6 months, 3 years from hire comes later. So that’s the date to use.
For an employee earning under the Social Security wage limit, what share of their wages does the employer pay in Social Security and Medicare tax?
7.65% The employer pays 6.2% for Social Security and 1.45% for Medicare, which is 7.65%. The employee pays the same 7.65% through withholding. Together that’s 15.3%.
Under federal OSHA construction rules, at what height do workers near an unprotected edge need fall protection?
6 feet OSHA’s construction standard requires fall protection when a worker is on a surface with an unprotected side or edge 6 feet or more above a lower level. Guardrails, safety nets or a personal fall arrest system are the usual options. States with their own OSHA plans can be stricter.
Under federal OSHA rules, when does a trench need a protective system such as sloping, shoring or a trench box?
At 5 feet deep or more, unless it’s all in stable rock OSHA requires cave-in protection in excavations 5 feet deep or more, unless they’re made entirely in stable rock. Shallower trenches can also need protection if a competent person sees signs of a possible cave-in. Trenches deeper than 20 feet need a system designed by a registered professional engineer.
An employee dies from a work-related incident. How soon must the employer report it to federal OSHA?
Within 8 hours Federal OSHA rules say a work-related death must be reported within 8 hours. An in-patient hospitalization, an amputation or the loss of an eye must be reported within 24 hours.
Your balance sheet shows $250,000 in current assets and $180,000 in current liabilities. What is your working capital?
$70,000 Working capital is current assets minus current liabilities: $250,000 minus $180,000 is $70,000. Boards like North Carolina’s look at working capital when deciding which license level you can hold.
Your total cost for a job is $80,000. You add a 25% markup. What is your bid price?
$100,000 Markup is added on top of cost. 25% of $80,000 is $20,000, so the price is $100,000. That $20,000 is 20% of the selling price, which is why a 25% markup gives a 20% margin.
A concrete slab is 30 feet long, 20 feet wide and 4 inches thick. About how much concrete do you need, before waste?
7.4 cubic yards Change inches to feet first: 4 inches is 0.333 feet. 30 × 20 × 0.333 is 200 cubic feet. There are 27 cubic feet in a cubic yard, so 200 ÷ 27 is about 7.4 cubic yards. You’d then add a little for waste.
On a project schedule, what is the critical path?
The longest chain of linked tasks, where any delay delays the whole job The critical path is the longest sequence of dependent tasks from start to finish. Those tasks have no float, so a delay to any of them pushes back the finish date. Tasks off the critical path have some slack.
United States · Licensing exam