Law and Business 1

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Author:
pablojr
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28489
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Law and Business 1
Updated:
2010-08-08 19:34:07
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Contracting
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State Examination
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  1. As part of the safety training proccess contractors supervisors are required to conduct "toolbox" or "tailgate" safety meetings. How often must these meetings be held?
    AT LEAST ONCE EVERY TEN WORKING DAYS.
  2. which of the following items is a job-related direct cost?
    PERFORMANCE BONDS
  3. What legal remedy can be pursued for non payment of funds owed to a contractor from a private job?
    PERFECT THE CLAIM OF LIEN
  4. The most important thing to include when advertising for construction work is......
    THE CONTRACTORS LICENSE NUMBER
  5. What must licensed plumbing, electrical sign, and well-drilling contractors have displayed on both sides of their commercial trucks?
    NAME, BUSINESS ADDRESS, AND CONTRACTORS LICENSE NUMBER
  6. What color paint is normally used to mark an excavation area?
    WHITE
  7. If, during excavation, you unearth human remains or burial artifacts at a construction site, what should you do?
    STOP WORK IMMEDIATELY AT THE SITE, AND NOTIFY THE CORONER
  8. Of the following four items to consider when bidding, which is the most important?
    PROFIT
  9. which of the following would you not include in a bid?
    ANTICIPATED LEGAL FEES
  10. When bidding on a home improvement contract, a contractor should include: material cost, labor cost, direct cost, permits, profit and...
    OVERHEAD COST
  11. What is the best reason for standardized bidding?
    ASSURANCES THE ACCURACY THE COST ESTIMATES
  12. Which of the following would most likely place a bid out of range from the other bids submitted for a job?
    PROFIT ABOVE 10%
  13. Your bid on a job was accepted, but you inadvertently left out part of that job, what should you do?
    THE CONTRACTOR IS RESPONSIBLE TO COMPLETE THE WORK
  14. What is a common pitfall in bidding?
    BIDDING AGAINST THE COMPETITION AND NOT THE JOB
  15. What is not recommended if you are out bid by a lower bidder?
    LOWER YOUR BID TO MATCH THE OTHER OFFERS
  16. A contractor is bidding on a project for a homeowner. The homeowner has included several "extra" items upon which to bid. After receiving the bid, the homeowner says it is to high and asks the contractor to lower the price. What should the contractor do?
    NEGOTIATE WITH THE OWNER TO REDUCE THE SCOPE OF WORK
  17. A customer wants to accept a bid but does not have enough money. A wise contract decision would be to....
    STICK CLOSE TO YOUR BID EVEN IF IT MEANS LOSING THE JOB
  18. When bidding on a job, what is the best way to "assess the job?"
    INSPECT THE JOB PERSONALLY
  19. If a contractor has a written contract based on "time and material," what should be done to cover an increase in overhead costs?
    THERE IS NOTHING HE CAN DO TO RECOVER THE ADDITIONAL COST (OVERHEAD IS NOT RELATED TO TIME AND MATERIAL)
  20. After your bid for a public works job has been accepted by the awarding authority, you recognize that you incorrectly listed one of your subcontractors. To correct your error, what should you do?
    NOTIFY THE AWARDING THE AUTHORITY AND REQUEST PERMISSION TO MAKE THE NECESSARY CHANGES DO TO YOUR CLERICAL ERROR
  21. If a general contractor fails to pay a subcontractor and the general fails for bankruptcy...
    THE SUB WOULD PROBABLY BE AWARDED A PORTION OF HIS CLAIM
  22. You realize after completion of a job that one of your subcontractors performed poor workmanship, who is responsible?
    THE PRIME CONTRACTOR
  23. How can contractors best control their job cost?
    BY PROPERLY COORDINATING ALL JOB ACTIVITIES
  24. What is the best way to monitor labor costs?
    FIGURE THE HOURS FROM DETAILED TIME CARDS
  25. When you lose money on a job, what is the best way to determine the source of a problem?
    COMPARE JOB COST RECORDS TO THE BUDGET
  26. What is the benefit of using job cost cards?
    THEY ARE A MEANS TO KEEP ACCURATE COST RECORDS FOR FUTURE BIDDING
  27. Select the best procedure when ordering materials for a job that is in progress
    CONSULT WITH THE JOB SUPERVISOR BEFORE ORDERING
  28. When is the best time to order materials?
    AFTER GOING OVER THE PLANS AND SPECS
  29. Large inventories should be maintained....
    NEVER
  30. What is best way to know what inventory you have?
    CALL THE SUPERINTENDENT AND HAVE IT CHECKED
  31. What should a contractor do, if the supplier he is purchasing material from, experiences a strike of its employees?
    CONTACT THE OWNER IMMIDIATELY
  32. When dealing with suppliers, how do you open an account and establish a line of credit?
    SIGN A NOTE THAT YOU WILL PAY YOUR NOTE MONTHLY
  33. The owner calls a contractor to fix a door that fell. The contractor agrees to rehang the door. After the contractor places the door, the owner asks the contractor to paint out the scratches made on the door by the owners dog, what should the contractor do?
    PREPARE A CHANGE ORDER
  34. Which of the following is considered the most effective means to avoid a problem with your customer regarding change orders during the course of construction?
    COMMUNICATE FREQUENTLY WITH YOUR CUSTOMER DURING THE COURSE OF CONSTRUCTION
  35. An owner makes numerous changes during the course of a job with that in mind, the contractor should.....
    CHARGE ADMINISTRATIVE FEES
  36. Which of the following ways is the least effective way to handle change orders?
    BILL THE CUSTOMER ONLY AFTER THE ENTIRE JOB IS COMPLETE
  37. Why should a contractor keep a copy of a change order?
    IN CASE A PROBLEM OCCURS LATER
  38. Where do you attach a change order?
    TO THE CONTRACT
  39. If customers have an excessive amount of change orders, how can you limit customers from having an excessive amount of change orders?
    ARRANGE FOR THE OWNER TO PUT FUNDS INTO AN ESCROW ACCOUNT OR FUNDING CONTROL COMPANY THAT WILL ENSURE PAYMENT FOR EACH CHANGE ORDER THAT IS PROPERLY EXECUTED
  40. Which of the following should be part of a change order?
    THE REVISED LIST OF COST
  41. which of the following statements best describes the correct practice when making amendments to an existing contract?
    AS CONTRACTOR, YOU CAN NOT MAKE ANY CHANGES FROM AN EXISTING CONTRACT WITHOUT THE OWNERS APPROVAL AND/OR SIGNITURE
  42. When you get an approved set of plans from the Building Department, what should you do?
    READ ANY NOTES
  43. Of the following, which would be the next step after an engineer hands you a set of approved plans?
    RECHECK THE PLANS
  44. Who is responsible if an employee installs a cabinet that falls and damages the counter-top?
    CONTRACTOR
  45. Work on a job ended two years ago. the owner, Mr. Jones notices some problems. Who should he contact?
    THE PRIME CONTRACTOR
  46. What should you do if a client is unhappy with your work?
    HANDLE THE PROBLEM IN A TIMELY MANNER WHEN IT COMES UP
  47. You are working on a job and you realize that the plans and specifications violate the applicable local codes? You are at a critical stage of the job. what is teh best form of action that you should take?
    CEASE WORK IMMEDIATELY UNTIL THE PLANS AND SPECS ARE BROUGHT UP TO CODE
  48. A customer cannot pay for the work you performed. What should you do?
    OFFER THE CUSTOMER AN EXTENSION UNTIL THEY CAN PAY
  49. A customer says you have failed to complete the remodeling job in a satisfactory manner and refuses to pay. If an arbitration clause does not appear in the original contract then....
    THE ONLY WAY TO ARBITRATE IS FOR BOTH PARTIES TO AGREE TO ARBITRATE
  50. The significance of retention is.....
    IMPORTANT BECAUSE RETENTION USUALLY EXCEEDS PROFIT
  51. If retention is withheld until substantial completion of the entire job, the subs that work on the early stages of the project can be put at a financial disadvantage. What is the best way to remedy this situation?
    TIE THE RELEASE OF PROPORTIONAL RETENTIONS TO THE COMPLETION OF THE SUBS WORK RATHER THAN THE ENTIRE JOB
  52. In most construction contracts, the retention may be held for ______ days as a guarantee that the prime pays the subcontractors and suppliers.
    60
  53. It is quite common in the construction industry for an owner to withhold a percentage of the total payments due to a contractor to ensure the contractor completes the job and pays his subcontractors and suppliers. Retentions are normally paid.....
    UPON COMPLETION AND EXPIRATION OF THE LIEN.
  54. The problem of retentions is greater for.....
    SUBCONTRACTORS WHO COMPLETE THEIR WORK EARLY IN THE PROJECT
  55. Before you initiate the inspection process with the building department, you should.....
    CLEAN THE JOB SITE
  56. A contractor constructs a building exactly per approved plans only to find out during inspection, the structure does not meet code due to an error by the Building & Safety Department. Who is liable?
    THE ARCHITECT/ ENGINEER
  57. All work on project has been completed. A copy of the final inspection report is given to whom?
    THE COUNTY ASSESSOR
  58. Select the best means to check to see that all phases of a job have been performed?
    A PUNCH LIST
  59. Which of the following is the best means to ensure that funds are readily available for a job?
    CHECK FOR COST OVERRUNS
  60. Who would be responsible for cost overruns on a job that the owner agreed to, but did not sign an additional contract for the cost overruns amounting to $2,500?
    THE CONTRACTOR WOULD BE RESPONSIBLE
  61. When purchasing insurance, what is the best way to choose the right company?
    THE CREDIT RATING OF THE COMPANY, THEN THE COST
  62. A "builders risk insurance" policy would cover....
    HAILSTORM DAMAGE
  63. Which of the following is not covered by a standard contractors insurance policy?
    EMPLOYEES TOOLS
  64. A contractor is looking for an insurance policy to cover the high degree of exposure to risk. Of the following, which insurance policy would be best for this purpose?
    UMBRELLA
  65. The taxes for businesses are calculated..........
    DEPENDING ON THE ORGANIZATIONAL STRUCTURE
  66. On what are contractors income taxes based?
    NET PROFIT
  67. If John, a prime contractor, fails to obtain a building permit prior to starting a job, he is subject to:
    SUSPENSION OF HIS CONTRACTORS LICENSE AND DOUBLE THE PERMIT FEE
  68. Whose signature must appear on an application for a building permit?
    CONTRACTOR
  69. What agency can give you direction and information pertaining to local building codes and regulations?
    THE ISSUING DEPARTMENT OR AGENCY
  70. Which of the following best describes the function of the Building Standards Codes?
    IT SETS FORTH REQUIREMENTS WHILE ALLOWING FOR ADAPTATION FOR LOCAL AUTHORITIES
  71. Which building code should a contractor follow?
    THE LOCAL CODE

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