Ca Contractor LAW-Questions with Correct Answers/ Verified/
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Regardless of the occupant load served, exit doors shall be operable from inside without the use of -
✔️✔️a key or any special knowledge
What do paint-grade wood cabinets require? Sanding - ✔️✔️Sanding
exceptions to licensing requirement - ✔️✔️employee paid wages, owner/building given properly is
not sold for one year, installer of finished products that do not become part of structure, alarm
company, work under $500, public utilities
Contractor License Classifications - ✔️✔️A - General Engineering Contractor - works on fixed works
ie irrigation, streets and roads, parks excavations
B- General Building Contractor - works on structures built for the shelter of persons or animals
requiring ore than two unrelated trades or crafts. A contractor who who performs only one trade on
a job (with exception of carpentry or framing) must have the specialty classification for that trade.
C - SPecialty Contractor - works in minor trades
What licenses does Board issue: - ✔️✔️Original License and Joint - Venture License
Original license - ✔️✔️issue to an "entity" which may be partnership, individual, or corporation.
how long is a license valid - ✔️✔️two year period. expires two years from the last day of themonth
it was issued.
Who may quality for the entity? - ✔️✔️a "qualifying individual or a qualifier is required for each
license issued.
May an individual qualify for more than one classification - ✔️✔️yes as long as they can show 4
years or exp and pass test
Who may be a qualifying individual - ✔️✔️individual license: the owner
partnership license: one partner or responsible managing employee
,Corporation License: One corporate officer (responsible managing officer) or responsible managing
employee
What is a responsible managing employee - ✔️✔️RME is one who is qualified to act as a qualifier
for a business entity. In order to act as an RME the RME but make inactive any other license
(including his own) and be permanently employed by the business entitiy or be actively engaged in
the operation of the business at least 32 hours per week or 80% of the total business operating
hours per week whichever is less.
how ofter is state contractors exam given - ✔️✔️the contract boards give the test at one of its
various testing locations Monday through Friday. You will received a notice to appear for
examination three weeks prior to test date notifying you of date and time and location
exam - ✔️✔️Multiple choice on computer, and given in two parts. Part 1 is Law & Business; Part 2 is
Trade.
Bonding requirements - ✔️✔️to get a license, you must submit contractor surety bond in amount
of $12500. An additional bond may be required on the qualifier if the qualifier owns less than 10% of
the company that is being qualified.
fees in getting a license - ✔️✔️$250 application fee, $150 two year license fee, Fingerprinting Fee,
plus Bonding Fees.
RME disaccociates - ✔️✔️licensee has 90 days to replace the RME or RMO or license becomes
susspended.
joint venture license - ✔️✔️license is issued to two or more licensed companies
how often for license renewal - ✔️✔️every two years
notice to owner - ✔️✔️state requires prime contractor to give notice before a job begins on
mechanics lien laws and the rights and responsibilities of the owner and contractor.
Powers of the Registrar - ✔️✔️The registrar of contractors (the head of the contractor state license
board) may investigate the actions of any applicant for a license, or of a contractor, salesperson
,Appeal of Citation - ✔️✔️licensee may appeal to registrar within 15 days from service of citation
Home Improvement Contract must contain - ✔️✔️name, address, license number of contractor
name and registration number of the salesperson
approximate dates work begin and end
down payment not to exceed $1000 or 10% whichever is less
dexcription of the work to be done
schedule of payments
Required on all Contracts - ✔️✔️Name and Address of the Contractors State License Board and the
name and address of the contractor
Business licenses are obtained - ✔️✔️from the office of the county or city clerk where wokr is to be
done. permits pulled in these offices require that the clerks office ask for the contractors license
number
purpose of a contractor bond - ✔️✔️to protect thethe customer or employee of the contractor
Report workers comp insurance carrier - ✔️✔️such a report shall be made by each contractor to
the Registrars office within 10 days. violation is a misdemeanor.
Mechanics Lien - ✔️✔️a lien upon real estate to secure the compensation of those who have been
direclty instrumential in the improvment of such properolty. wage earners do not have lien rights.
Claim of a Lien - ✔️✔️written statement demand after deducting all credits name of owner, labor
conducted, descriptiosn of job site
california 20 day preliminary notice - ✔️✔️first step in establish a lien right. an invoice can be
subsituted for this.
Stop Notice - ✔️✔️used on public works instead of a lien since public property may not be liened.
, original contractor - ✔️✔️contractor who has direct contract with the owner, whether the
contractor be aprime or specialty contractor. (Original contractor = Prime Contractor)
Stop Notice - ✔️✔️Lien on funds. it is a notice to the awarding authority of the holder of the
construction fundsd by a subcontractor (claimant) to withhold money to the prime contractor in
order to satisfy cliams for labor and materials furnishe3d to the original contractor by the
subcontractor.
WHen not paid, a subcontractor can file a mechanics lien and/or Stop Notice at any time after cesig
to perofmr labor until - ✔️✔️30 days following the notice of completion or notice of cessation
when not paid, a prime contractor can file mechanics liense within - ✔️✔️60 days after NOtice of
Completion or Notice of Cessation.
Notice of Completion - ✔️✔️filed by owner within 10 days after the job is completed. It restricts the
number of days wihtin which a contractor can fiel a lien against the properoty.
criteria to determine the completion of a project: - ✔️✔️1. occupation or use of a work of
improvement by the owner.
2. the acceptance by the owner.
3. lapse of 60 days
notice of cessation - ✔️✔️job has stopped and it cannot be recorded until 30 days has lapsed.
if notice of cessation has been filed contractors have - ✔️✔️90 to file stop notice and/or liens
a suit to perfect a claim of lien muist be commenced within an period of ___ days immedatly after
the date of filing. Liens are filed with the County Recorder in the county where the job takes place -
✔️✔️90 days
to perfect a lien, it is necessary to file a ______within 90 days. - ✔️✔️Lien Foreclosure Action
NOTICE OF NON-RESPONSIBILITY - ✔️✔️afiled by owner within 10 days when work is done that was
not ordered.
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