Utah Contractor Exam Flashcards
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Questions and Answers

What is a sub-contractor of the prime contractor?

  • A sub-contractor of the agency
  • An employee of the agency
  • An employee of the prime contractor (correct)
  • None of the above

    • You would go to a district court:

  • For a case involving federal law
  • When constitutional issues are involved
  • For an interstate dispute
  • All of the above (correct)

    • A sole proprietorship has how many members running the company?

  • 1 (correct)
  • 2
  • 4 or more
  • 3

    • Which act establishes the rights of workers to organize into unions and negotiate contracts?

    <p>National Labor Relations Act of 1935</p> Signup and view all the answers

    If a home solicitation contract is signed on Thursday afternoon, what is the deadline for cancellation?

    <p>Monday midnight</p> Signup and view all the answers

    What is the purpose of OSHA?

    <p>Helps employers voluntarily follow safety and health laws and standards</p> Signup and view all the answers

    Do I need to keep paying for liability insurance, maintain financial responsibility, etc. for my license while I am not actively contracting?

    <p>Yes</p> Signup and view all the answers

    You must report FICA any withheld income tax (Form 941) every:

    <p>Three months</p> Signup and view all the answers

    The best way to reduce insurance costs without reducing risk is to:

    <p>Compare premiums and coverage yearly</p> Signup and view all the answers

    Which of the following is least likely to result in a claim dispute between the contractor and an owner?

    <p>Rejection of subcontractor</p> Signup and view all the answers

    Which of the following payroll taxes does not have a limit?

    <p>FIT</p> Signup and view all the answers

    The most economical way to obtain insurance is to:

    <p>Price-shop with several agents</p> Signup and view all the answers

    The ________ is found in the bidding documents of a construction contract, under the 'Instructions to Bidders'?

    <p>Reform of Bid</p> Signup and view all the answers

    Employees must provide the contractor with Form W-4:

    <p>When they start work</p> Signup and view all the answers

    An employer would issue a 1099 to:

    <p>A nonemployee who was paid at least $600 for services during the year</p> Signup and view all the answers

    The 'Notice of right to cancel' on a home improvement contract, is found where?

    <p>Near the client’s signature</p> Signup and view all the answers

    A time card includes the day and hours the person worked, as well as:

    <p>A description of the work</p> Signup and view all the answers

    Which of the following statements about mechanics' liens is correct?

    <p>The owner is responsible for the debt stated in the lien</p> Signup and view all the answers

    Who usually pays for your pre-employment physical?

    <p>Employer</p> Signup and view all the answers

    Can I inactivate my professional license?

    <p>Yes</p> Signup and view all the answers

    Of the following, which is the best way to determine if more materials must be ordered?

    <p>Compare material lists for similar jobs</p> Signup and view all the answers

    Specifications in construction contracts written without reference to brand names or proprietary makes are known as ______ specifications.

    <p>Base bid</p> Signup and view all the answers

    The person responsible for keeping records of changes on jobs is:

    <p>The general contractor</p> Signup and view all the answers

    If a client continues to request change orders, you should:

    <p>All of the above</p> Signup and view all the answers

    The phrase _______ is considered potentially troublesome in construction specifications.

    <p>Or equal</p> Signup and view all the answers

    Which of the following statements is correct? A contractor discovers a serious code violation on an approved set of plans:

    <p>Work must stop until the contractor reports the violation and has the plans corrected</p> Signup and view all the answers

    What is the purpose of the following statement in a contract? 'THE AGENT IS LIABLE FOR FINAL PAYMENT.'

    <p>The agent is responsible for final payment</p> Signup and view all the answers

    The Utah Division of Occupational and Professional Licensing will accept certain examinations an equivalent substitute for the Utah trade classification examinations required if taken in one of the following states.

    <p>Arizona, California, Nevada, Louisiana, South Carolina</p> Signup and view all the answers

    The most accurate method of accounting is:

    <p>Accrual</p> Signup and view all the answers

    The most reasonable method of preventing disputes about change orders is to:

    <p>Include the change order procedure in the original contract</p> Signup and view all the answers

    In a contract bond arrangement, the _____ is the obligee.

    <p>Owner</p> Signup and view all the answers

    A contractor must retain records for employees that are exposed to hazardous materials for a period of time of:

    <p>30 years</p> Signup and view all the answers

    This type of bond guarantees job completion:

    <p>Performance bond</p> Signup and view all the answers

    The person responsible for keeping track of change orders is:

    <p>Contractor</p> Signup and view all the answers

    For what length of time are Current liabilities generally considered?

    <p>12 months</p> Signup and view all the answers

    An employer is not required to keep written health records for:

    <p>10 employees or less</p> Signup and view all the answers

    The specification referring to a standard established for either a material, a test method, or an insulation procedure is called a ________.

    <p>Reference</p> Signup and view all the answers

    Which of these is classified as a job-related direct cost?

    <p>Performance bond</p> Signup and view all the answers

    If a contract is made between a contractor and an unlicensed person who is in violation of the law?

    <p>Both the contractor and the unlicensed person</p> Signup and view all the answers

    Under the terms found in a typical construction project, the contractor is usually held to guarantee that the completed project:

    <p>Has been executed with the quality of workmanship and materials specified in the contract documents</p> Signup and view all the answers

    Form 941 must be submitted how often?

    <p>Quarterly</p> Signup and view all the answers

    After an employee is terminated, how long should a company maintain the employee's time card?

    <p>One year</p> Signup and view all the answers

    If a contractor finds an 8" discrepancy on a set of plans, what should the contractor do?

    <p>Contact the architect or building designer</p> Signup and view all the answers

    Overtime laws are considered to be:

    <p>Federal laws</p> Signup and view all the answers

    Which of the following is NOT by itself an acceptable form of documentation for filling out an I-9 form?

    <p>Social Security card</p> Signup and view all the answers

    In writing construction specifications, each of the following performance characteristics is associated with compatibility EXCEPT:

    <p>Dimensional stability</p> Signup and view all the answers

    When should a contractor accept a job where the owner does not have a pre-approved loan?

    <p>When there is an emergency situation and the owner has a high income and good credit</p> Signup and view all the answers

    The 'Notice to Owner' is given to:

    <p>Let the owner know that the property can be liened</p> Signup and view all the answers

    Which of the following does the state require for contractors to obtain?

    <p>Some form of insurance/bonds</p> Signup and view all the answers

    An employer must provide information on safety procedures:

    <p>When a new employee is hired</p> Signup and view all the answers

    Depreciation is taken on which of the company's assets?

    <p>Fixed assets</p> Signup and view all the answers

    A private employer who employs __ or more people as of July 1, 2010, may not hire a new employee unless the employer is registered with and uses a status verification system such as E-Verify.

    <p>15</p> Signup and view all the answers

    If a contractor decides to increase the contract price, the contractor:

    <p>And the owner must agree to a written and signed change order</p> Signup and view all the answers

    If a subcontractor signs an unconditional waiver and release, this would imply that a:

    <p>Subcontractor cannot ask anything more of the owner</p> Signup and view all the answers

    Any applicant who has been denied a license to practice on the basis of credentials, or failure to pass a required examination, may submit a request for agency review to the executive director ____ following notification of the denial of a license or refusal to renew or reinstate a license.

    <p>Within 30 days</p> Signup and view all the answers

    What should a contractor do if after starting a home improvement project the contractor discovers that the details and specifications do NOT correctly show the existing construction?

    <p>Stop the job and inform the owner or his agent</p> Signup and view all the answers

    Keeping good accounting records is important for:

    <p>All of the above</p> Signup and view all the answers

    The promise by a party called the guarantor to make good the mistake, debt, or default of another party found in the construction contract law is called:

    <p>Guarantee</p> Signup and view all the answers

    The plans and specifications of a home improvement project usually describe:

    <p>Layout sizes</p> Signup and view all the answers

    The number of years that an employer must keep records of FUTA and other federal taxes is:

    <p>4 years</p> Signup and view all the answers

    What is the term for a detailed compilation of the quantity of each elemental work item?

    <p>Takeoff</p> Signup and view all the answers

    Before beginning work, an employer or contractor must inquire whether asbestos is present in any building constructed prior to:

    <p>1978</p> Signup and view all the answers

    An important thing to include when advertising for construction work is:

    <p>The contractor's license number</p> Signup and view all the answers

    Which type of specification is most commonly used for public work?

    <p>Open</p> Signup and view all the answers

    ______ you pass the state required exams, all applicants must complete the required application to obtain a contractor license.

    <p>After</p> Signup and view all the answers

    The best way to determine if a contractor is duly licensed is to:

    <p>Call the Utah Department of Professional Licensing</p> Signup and view all the answers

    A ___________ is needed if an owner wants a contractor to start earlier before the formalities associated with the signing of the contract can be completed.

    <p>Letter of intent</p> Signup and view all the answers

    _____ your application is submitted to the D.O.P.L. you must purchase the required public liability insurance.

    <p>Before</p> Signup and view all the answers

    Which can be said about fixed expenses?

    <p>Overhead is generally considered a fixed expense</p> Signup and view all the answers

    One way of guaranteeing project completion and correction of defects is by withholding funds which is also called:

    <p>Retention</p> Signup and view all the answers

    _________ defines the total financial resources available to the contractor.

    <p>Equity</p> Signup and view all the answers

    When doing several prime contracts in a construction project, the limits of each prime contract will usually be established in the:

    <p>Specifications</p> Signup and view all the answers

    My license was up for renewal, but it expired. Why wasn't I contacted?

    <p>It is the licensee's responsibility to provide current and up-to-date contact information</p> Signup and view all the answers

    If more than 0.1 asbestos is discovered in the construction materials, the following should be done:

    <p>The contractor should contact OSHA immediately</p> Signup and view all the answers

    A cancellation of contract happens:

    <p>When the buyer tenders written notice of cancellation to the seller at the contract's specified address</p> Signup and view all the answers

    Once I submit my application, can I work until I get my license from DOPL?

    <p>No</p> Signup and view all the answers

    If depreciation of equipment is not accounted for on a balance sheet, debts are:

    <p>Overstated</p> Signup and view all the answers

    Preliminary notice must be filed with the Construction Registry within __ days after commencement of claimant's work.

    <p>20</p> Signup and view all the answers

    A license may not be reinstated subsequent to action taken under Section 58-1-401 _______ after the action has been taken, unless the division in collaboration with the appropriate board imposes other conditions.

    <p>Within 90 days</p> Signup and view all the answers

    If a job site is found to have unsafe conditions, OSHA has the power to stop work for:

    <p>Until the working hazard is resolved</p> Signup and view all the answers

    As a safety precaution, how many feet should there be between explosives and electrical wiring?

    <p>25 feet</p> Signup and view all the answers

    If a homeowner requests that the contractor obtain a payment and performance bond, the owner is wanting coverage for:

    <p>Materials, labor and supplies</p> Signup and view all the answers

    Written reports are required to be written by the employer in case of which job-related injury?

    <p>All of the above</p> Signup and view all the answers

    The term for the written documents which describe the rights, responsibilities, and relationships of the contracting parties is called:

    <p>General conditions</p> Signup and view all the answers

    The DOPL has authority to enforce the:

    <p>Contractor's warranties</p> Signup and view all the answers

    A minor must be paid what percentage of the normal wage?

    <p>100%</p> Signup and view all the answers

    You are allowed to take the contractor license exam ______ times before your original application is voided.

    <p>Three</p> Signup and view all the answers

    How long can a licensed contractor be liable for latent defects?

    <p>10 years</p> Signup and view all the answers

    When dealing with a public works project, a stop notice is used to:

    <p>Withhold sufficient money from the prime contractor to pay the subcontractors who file stop notices</p> Signup and view all the answers

    The acceptance period in the bidding process of construction projects is a period of______ days.

    <p>30</p> Signup and view all the answers

    If asbestos is found in a home improvement project, the responsible party for the abatement is:

    <p>Homeowner</p> Signup and view all the answers

    Prime contractor and a subcontractor have what kind of relationship?

    <p>Contractual</p> Signup and view all the answers

    Which of the following is considered a direct cost?

    <p>Payroll tax</p> Signup and view all the answers

    When a contractor discovers a hazardous material, the contractor must inform the:

    <p>Homeowner</p> Signup and view all the answers

    How does a contractor pay for his/her delivery materials?

    <p>C.O.D.</p> Signup and view all the answers

    Study Notes

    Depreciation and Assets

    • Depreciation is applicable to fixed assets, not loans or current assets.

    Employment Verification

    • Private employers with 15 or more employees as of July 1, 2010, must use a status verification system like E-Verify for new hires.

    Contract Price Changes

    • A contractor can increase the contract price only with a written and signed change order, agreed upon by both parties.

    Waiver and Release

    • An unconditional waiver and release from a subcontractor means they cannot claim further payment from the owner after signing.

    License Denial Review

    • Applicants denied a license can request agency review within 30 days of denial notification.

    Project Specification Discrepancies

    • Contractors must inform the owner if project specifications do not match existing building conditions before proceeding.

    Importance of Accounting Records

    • Keeping accurate accounting records supports effective management, financial statements, and financing opportunities.

    Construction Guarantees

    • Guarantees in construction law ensure that a guarantor will rectify another party's mistakes or defaults.

    Construction Plans

    • Plans for home improvement projects primarily detail layout sizes and specifications.

    Tax Record Retention

    • Employers are required to keep records of FUTA and federal taxes for a minimum of four years.

    Quantity Estimation

    • A "takeoff" is a detailed listing of quantities for each work item used in construction estimations.

    Asbestos Regulations

    • Contractors must check for asbestos in buildings constructed before 1978 prior to initiating work.

    Advertising Requirements

    • Contractors must include their license number in advertisements to ensure legitimacy.

    Public Work Specifications

    • Open specifications are typically used for public works projects.

    License Application Process

    • Applicants must complete a license application after passing the required state exams.

    Verification of Licensing

    • The Utah Department of Professional Licensing is the reliable source for verifying a contractor's license status.

    Contract Initiation

    • A letter of intent is necessary if work must begin before that contract is formally signed.

    Required Insurance

    • Public liability insurance must be purchased prior to submitting application to the Department of Professional Licensing.

    Fixed Expenses

    • Overhead costs are generally classified as fixed expenses, which do not vary significantly over time.

    Retention Payments

    • Retention refers to the practice of withholding payment to ensure project completion and defect correction.

    Financial Resources

    • Equity signifies the total financial resources available to a contractor.

    Prime Contracts

    • Specifications outline the limitations of each prime contract on a construction project.

    License Renewal Responsibility

    • Licensees must maintain current contact information to receive renewal notifications from the Department of Professional Licensing.

    Asbestos Discovery Protocol

    • If more than 0.1 of asbestos is found, the contractor must contact OSHA for further directives.

    Contract Cancellations

    • Cancellation of a contract formally takes effect when written notice is delivered to the seller.

    License Hold Period

    • Applicants cannot work until their license is issued after application submission.

    Overstated Debts

    • Failing to account for equipment depreciation leads to overstated debts on a balance sheet.

    Preliminary Notice Requirement

    • Preliminary notice must be filed within 20 days of commencing work to preserve rights.

    License Reinstatement Limits

    • A license cannot be reinstated within 90 days of a disciplinary action unless specified otherwise by the division.

    OSHA Work Stoppage Authority

    • OSHA can stop work at a site until all unsafe conditions are addressed.

    Safety Precautions with Explosives

    • Maintain a minimum distance of 25 feet between explosives and electrical wiring.

    Payment and Performance Bonds

    • Payment and performance bonds ensure the contractor's obligations for materials, labor, and supplies are met.

    Injury Reporting

    • Written reports are mandatory for injuries requiring more than first aid or necessitating an employee's return to work.

    General Conditions of Contracts

    • General conditions define the obligations and relationships of the parties involved in a contract.

    DOPL Authority

    • The DOPL has the authority to enforce contractor warranties.

    Minor Wage Regulations

    • Minors must receive the same pay as adult employees for similar work performed.

    Examination Attempts

    • Applicants are allowed three attempts to pass the contractor license exam within an 18-month period.

    Latent Defect Liability

    • Contractors can be held liable for latent defects for a period of 10 years.

    Stop Notice in Public Works

    • A stop notice is used to withhold enough funds from a prime contractor to ensure subcontractors are paid.

    Bidding Acceptance Period

    • The acceptance period for construction bids is typically 30 days.

    Asbestos Abatement Responsibility

    • Homeowners are responsible for hiring licensed professionals for asbestos removal.

    Contractor-Subcontractor Relationship

    • Contractors and subcontractors maintain a contractual relationship.

    Direct Costs in Construction

    • Payroll tax is categorized as a direct cost associated with construction.

    Hazardous Material Reporting

    • Contractors must inform homeowners when hazardous materials are discovered at a worksite.

    District Court Jurisdiction

    • District courts deal with federal law cases, constitutional issues, and interstate disputes.

    Sole Proprietorship Structure

    • A sole proprietorship is run by a single individual.

    Labor Rights Legislation

    • The National Labor Relations Act of 1935 establishes workers' rights to unionize and negotiate.

    Home Solicitation Contract Cancellation

    • The cancellation deadline for a home solicitation contract is Monday midnight following a Thursday signing.

    OSHA's Objective

    • OSHA's purpose is to adopt and enforce safety and health regulations in the workplace.### OSHA and Compliance
    • OSHA aids employers in voluntarily adhering to safety and health laws.
    • OSHA makes decisions on appeals concerning safety and health citation violations.
    • Permits and registration are issued by OSHA for contractors engaging in asbestos-related work.

    Liability Insurance and Licensing

    • Active contractor licenses in Utah necessitate ongoing liability insurance and financial responsibility.
    • Inactive licenses are exempt from these insurance and financial responsibilities.

    FICA and Tax Reporting

    • Employers must report withheld income taxes (Form 941) quarterly.

    Insurance Cost Management

    • To reduce insurance costs without increasing risk, compare premiums and coverage annually.

    Disputes in Contracts

    • The rejection of sub-contractors is the least likely cause for disputes between contractors and owners.

    Payroll Taxes

    • Federal Income Tax (FIT) does not have a cap; it is considered unlimited compared to other payroll taxes.

    Insurance Acquisition

    • The most effective approach to acquire economical insurance is to compare quotes from various agents.

    Bidding Documentation

    • The "Reform of Bid" is included in the bidding documents under "Instructions to Bidders".

    Employee Documentation Requirements

    • Employees must submit completed Form W-4 at the beginning of their employment.

    1099 Issuance

    • A contractor must issue a 1099 form to any nonemployee paid $600 or more for services in a year.

    Home Improvement Contracts

    • The "Notice of right to cancel" appears near the client's signature on home improvement contracts.

    Time Card Recordkeeping

    • A time card should detail the day and hours worked as well as a description of the work performed.

    Mechanics' Liens

    • In a mechanics' lien, the owner holds the responsibility for the associated debts.

    Pre-employment Costs

    • Employers typically cover the costs of pre-employment physical examinations.

    License Inactivation

    • Contractors can apply for an inactive professional license status, but fees and renewal criteria still apply.

    Inventory Assessment

    • The best practice to determine if additional materials are needed involves comparing material lists from similar jobs.

    Specifications in Contracts

    • Base bid specifications describe materials and construction methods without reference to specific brands.

    Change Order Management

    • The general contractor is responsible for maintaining records of all changes and decisions during the project.

    Quality Assurance in Contracts

    • Contractors must ensure completed projects meet specified quality standards in the contract documentation.

    Accounting Methods

    • Accrual accounting is recognized as the most accurate accounting method.

    Change Order Disputes Prevention

    • Including the change order procedure in the original contract can prevent future disputes.

    Bonding in Contracts

    • The owner is identified as the obligee in a bond arrangement related to contract performance.

    Hazardous Materials Recordkeeping

    • Contractors are required to keep records for employees exposed to hazardous materials for 30 years.
    • Performance bonds are classified as job-related direct costs in construction.

    Contracting with Unlicensed Individuals

    • Both the contractor and the unlicensed individual are in violation of the law if a contract is made without proper licensing.

    Employee Time Card Retention

    • Employers must keep an employee's time card for one year post-termination.

    Federal Overtime Laws

    • Overtime laws are classified as federal regulations.

    I-9 Documentation Compliance

    • Lack of a Social Security card may not be a sufficient standalone document for completing an I-9 form.

    Construction Specifications and Compatibility

    • Dimensional stability is not associated with the compatibility characteristics in construction specifications.

    Acceptance of Jobs without Loans

    • Contractors may accept jobs from owners lacking pre-approved loans under emergency conditions with verified high income and good credit.

    Notice to Owner Purpose

    • A "Notice to Owner" informs that a property can be liened.

    Contractor Requirements by State

    • Contractors are generally required to have some form of insurance or bonding to operate legally.

    Safety Procedure Communication

    • Employers must provide safety procedure information when new employees are hired.

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    Test your knowledge with these flashcards designed for the Utah Contractor Exam. Covering essential topics such as depreciation of assets and employment verification systems, these cards provide a quick and effective way to study for the exam.

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