CONTRACT REQUIREMENTS AND EXECUTION

What is the maximum penalty for abandonment of a job?

Where can details be found that determine the type of materials used in construction?

A contractor enters into a home improvement contract with a homeowner to remodel a kitchen for $4,700. What is the MAXIMUM down payment collected on this job before work begins?

Which of the following is not required when executing a change order?

How many days does a PRIME CONTRACTOR have to record a notice of completion after the actual completion of work?

If an unauthorized deviation from regulations or building standards is discovered, then the law allows _______ to become compliant.

Can a homeowner give a contractor money if the contractor hasn’t started work?

The owner complains about workmanship on a completed project which is not critical to the timely completion of the whole project. However, the contractor is involved in the middle of the project which is critical to the timely completion of all of the phases. If the complaint is reasonable and requires correction, then which of the following is a best response?

The notice of cessation is filed _________________.

Notice of Cessation cannot be filed for the first 30 days.

A customer accepts a bid, however, the contractor then realizes that they made an error in the price. Which of the following best describes what the contractor should do in this instance?

Of the following, who would potentially meet the qualifications for a PACE loan?

Which of the following is a violation of the contractor’s law?

The price for a service and repair contract using a “not to exceed” clause may only be increased so long as:

Who is responsible for halting a job during a declared state of emergency?

When the customer is signing a contract, what is required next to the customer’s signature?

The Contract Notice must be included in:

What can a contractor do if the client doesn’t understand the contract or its contents?

Which of the following needs a contractor’s license?

What is the first thing that must happen when a home improvement contract is involved?

How long is the contractor liable for patent or visible defects?

What is the PACE loan primarily for?

What should you have on the first page of a contract?

In small claims court ______________.

One of the first steps a contractor should take before bidding on a project is to:

If a home solicitation presentation is made in Spanish, then the contract language:

Contractor advertisements must contain:

A home improvement contract will contain progress payments written:

What is a contractor prohibited from doing if there was an issue on the contract?

Why do contractors implement a schedule of values as a management tool?

If a subcontractor that has been paid already for his work, causes damage to the property, who is responsible for the damages?

Bob owns a property with 3 acres of land. The driveway to Bob’s residence gets wet during the winter season and is hazardous. Bob hires Frank to change the entrance location to the opposite end of the property. Who will Frank contact to get permission for such a task?

A legal term that describes the direct relationship that exists between parties in the same contract (i.e., the Owner and the General contractor) is called:

Which of the following does NOT pertain to a service and repair contract?

Pre-contract conditions include:

When preparing a bid, which of the following costs is considered overhead?

Once a prime contractor sends payment to their subcontractor and the check is cashed, how is it possible for the subcontractor to give a stop notice to the awarding authority?

What should be done before the inspector arrives?

Bob is bidding on a job and his direct costs are $35,000, overhead is 13% and profit is 5% of the bid. What will Bob’s bid be?

What is a “defects liability period”?

Everything must be included in a change order, except:

If Eric is selling or negotiating contracts at a client’s home and does not hold a Home Improvement Salesperson Registration, what kind of charge can the Registrar of Contractors impose on Eric?

If the homeowner discovers a defect in a new residential, single-family dwelling, they must?

Home improvement contracts must include, among other things:

If the homeowner cancels the home improvement contract negotiated at a client’s home within three days, how much time does a contractor have to pick up the material?

Which of the following is NOT included in a notice of completion?

____________________, then the contractor shall NOT be charged a fee for a re-inspection.

A licensed contractor enters into a verbal agreement with a customer for home improvement work. The total price for this project is $450. After reviewing the agreement, the contractor does not want to do the work at this price. Which of the following statements are true in this situation?

A home improvement salesperson violates provisions set by California law without telling the contractor. Who is subject to disciplinary action by the Contractors State License Board (CSLB)?

When is the best time to respond to an owner’s complaint regarding materials?

Which of the following defines a contractor engaging in the business of remodeling or improving homes on a full-time or part-time basis?

What should a contractor do if the client is not satisfied with the work?

Which of the following is required on a change order?

If the owner makes numerous changes during the course of a job, when should the contractor bill the customer for the changes?

Can a service and repair contract be canceled?

What is the proper course of action if a set of blueprints or schematics contains discrepancies or contradictions?

Who is responsible for an employee’s poor workmanship?

If the home improvement contract was legally canceled on September 8th, by what date must a contractor return the down payment?

When the total price of a bid is over ___, the contractor must be licensed.

Who would be responsible for $2300 in cost overruns that the owner agreed to, but did not sign an additional contract for?

If materials cost $2.50 per linear foot and the labor cost is $1.50 per linear foot, how much is the installation of 250 linear feet?

How long is the contractor liable for latent or structural defects?

When writing a home solicitation contract, the buyer signs the contract at a place other than the contractor’s place of business. What form must be included with the contract?

Jurisdictional strikes are:

What is the benefit of arbitration over litigation?

Where is “Mechanics Lien Warning” located on a contract?

Within how many days must an “agreement to arbitrate” be returned by the participants after being mailed by CSLB’s Registrar?

Retention is when:

If a contractor’s salesperson makes an oral bid to a prospective customer in Spanish, the written home solicitation contract:

Which clause requires a subcontractor to be bound by the same obligations as a general contractor?

What is a good way for a contractor to decrease outsourced labor costs?

In construction agreements, what are the most common methods of construction?

If work on a job was completed two years ago and the owner noticed some problems, who should the owner contact?

Can a contractor tell a homeowner that he or she does not have workers’ compensation insurance?

Why is binding arbitration better than a regular lawsuit?

What document is used when the homeowner decides to revise the original contract?

Which of the following will protect the contractor from making a mistake during the bidding process?

If a contractor completes a project after the agreed completion date, what type of damages does the contractor pay the owner?

Holding up retention creates a problem that is relatively serious for:

Who typically escorts the city inspector around the job site?

Which of the following is true regarding contracts and payments?

Which of the following is considered a PACE-approved upgrade?

On April 7th, the contractor negotiated a home solicitation contract with a homeowner which gave a small down payment. The homeowner changed his mind and was able to successfully cancel the contract on April 10. Of the options provided, what is the latest date the contractor had to return the down payment?

When should the Home Improvement Salesperson include a Notice of Cancellation form?

If all work on a project has been completed, a copy of the final inspection report should be given to:

The Department of Building and Safety

What is a “Certificate of Making Good Defects”?

In a non-emergency situation, a contractor must give a customer at least ____ to cancel a home solicitation contract.

If a client fails to keep up on progress payments, what can the contractor do?

A contractor will not hire a subcontractor based on their:

What is the maximum value of a gift, which the home improvement salesperson can give to a potential customer?

What happens if a subcontractor signs a contract that contains an indemnity agreement?

Who must sign and date the contract?

A contractor constructs a building exactly according to the approved plan. During the inspection, the contractor finds out that the building does not meet the code due to an error by the Building and Safety Department. Who is liable?

Using a time card that allows a contractor to review and keep track of hours worked is part of:

Prior to a bid, what is a contractor considering when reviewing the plans and specifications?

Which of the following is required on a home improvement contract?

Generally, what is the upper limit on the money amount that a party can claim in small claims court?

Which of the following defines a person having some title or interest in a parcel of real property?

What is not recommended when being outbid by a lower bidder?

A contractor and owner agree to a price of $20,000 for a home improvement project and sign a contract. What is the maximum down payment the contractor may require before beginning work?

A home solicitation contract was signed on Friday and the contractor received a written letter four days later, stating that the homeowner will not proceed with the contract. The letter was postmarked on Saturday, so what does the contractor do?

A contract provides for 90% payment by the time construction is completed for the final 10% after the lien period expires. This 10% retention:

Which of the following project types are best avoided?

If the customer does not pay their invoice on time, what should the contractor do?

What is the typical percentage of retention withheld from the progress payments?

When should a contractor collect payment for the change order?

Which of the following is not recommended when submitting a bid to a customer?

When should a contractor show proof of licensure?