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Examination
Contents
The Law and Business Examination is divided into ten major sections.
These sections are:
- Employee Issues (approximately 4%)
- Contracts (approx. 10%)
- Project/Job Management (approx. 20%)
- Safety (approx. 12%)
- Insurance (approx. 3%)
- Bookkeeping (approx. 15%)
- Bid Procedures (approx. 13%)
- Licensing (approx. 15%)
- Liens and Dispute Resolution (approx. 5%)
- Special Circumstances (approx. 3%)
Materials for the Examination
This is a closed-book examination. No reference materials may be used
during the examination.
All materials brought to the examination site must be left in an
unmonitored area at your own risk.
Some questions require arithmetic computation. Applicants may bring a
hand/pocket calculator (either battery operated or solar powered) that is non-printing and
not alpha-programmable.
Test Strategy
For each question of the examination there are four choices to choose
from. Only one is the correct answer. There are no trick questions. Read carefully and
choose the answer which you believe correctly completes the statement or answers the
question.
It is to your advantage to answer all of the questions. Since there is
no penalty for guessing, you should guess at any question (s) when you are not sure of the
correct answer.
Sample Questions
The following questions are typical of the types of items that are on the examination.
The correct answer is marked with <<<.
1. All of the following are causes for disciplinary action EXCEPT:
- allowing one's license to be used by an unlicensed contractor
- entering into a contract with another contractor who is not licensed
- during bankruptcy, settling obligations incurred as a contractor for less than the full
amount owed <<<
- willful or deliberate failure to pay money when due for materials or services
2. Which procedure BEST ensures error-free bids
- working with an attorney
- having another person draft the bid
- discussing details of the bid with the supplier
- rechecking the bid before submitting it to the client <<<
3. As part of the safety training process, contractors' supervisors are required to
conduct "tool box* or "tailgate" safety meetings. How often must these
meetings be held?
- daily
- at least once every ten working days <<<
- at least once a month
- at least once a quarter
REFERENCES MATERIALS
California Contractors License Law and Reference Book (1994).
Department of General Services, Publication Section, P.O. Box 1015, North Highlands, CA
95660, (916) 574-2200. $13.50 including tax, postage and handling (effective August 1994).
Since the book is shipped via U.P.S., your street address needs to be indicated on the
order. This text is the primary reference for the examination.
Construction Management Guide - Basic Business & Project
Management for Contractors. National Association of State Contractors' Licensing Agencies,
P.O. Box 30478, Phoenix, AZ 85046. $22.50 including tax, postage and handling (Shipped
two-day priority mail).
California Employer's Tax Guide (DE 44 Rev. for the current year)
covers withholding, payment, and reporting of California Income Tax. It also covers
requirements related to Unemployment Insurance, Disability Insurance, and the Employment
Training Fund. It is available at the Employment Development Department nearest you.
Circular E, employer's Tax Guide (Publication 15 for the current
year) covers federal withholding, Social Security, Medicare and FUTA tax and filing and
deposit requirements. It is available at the district or local Internal Revenue Service
Office nearest you.
Employment Taxes and Information Returns (Publication 937 for the
current year) covers federal withholding, Social Security, Medicare and FUTA tax and
filing and deposit requirements. It is available at the district or local Internal Revenue
Service Office nearest you.
How to Succeed with Your Own Construction Business,
Diller, S. and Diller, J. Craftsman Book Company, 6058 Corte del Cedro, Box 6500, Carlsbad, CA 92009.
(800) 829-8123.
Bookkeeping for Builders, Thomsett, M.C. Craftsman Book Company, 6058
Corte del Cedro, Box 6500, Carlsbad, CA 92009. (800) 829-8123.
- Accounting and Financial Management for Builders, National Association of Home Builders,
15th and M Streets, N.W., Washington, D.C. 20005. (800) 223-2665.
Key sections of the law related to safety in construction are cited
in the California Contractors License Law and Reference Book (1994). For detailed
information, refer directly to Title 8 of the California Code of Regulations and to the
California Labor Code. If these sources are not available at your local public library,
you should be able to find them at any college library.
Information about safety laws and regulations can also be found in
three publications available from the Department of Industrial Relations, P.O. Box 420603,
San Francisco, CA 94142-0603, attention: Cal/OSHA Publications. (415) 703-5281. These
publications are:
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