ContractorsLicense.com

The Law and Business Examination is divided into ten major sections.

These sections are:

1. Company start-up procedures (10%)

  • Regulations
  • Planning
  • Business records

2. Human resources (6%)

  • Legal status
  • Qualifications
  • Employment recordkeeping

3. General business requirements (20%)

  • Accounting practices
  • Information management
  • Cash flow

4. Insurance and bonds (7%)

  • General business insurance
  • Workers’ Compensation insurance
  • Bonds

5. Pre-contract considerations (12%)

  • Estimating
  • Verification

6. Proposals and contracts (9%)

  • Writing
  • Content
  • Warranty

7. Contract compliance (9%)

  • Industry standards
  • Changes
  • Invoicing
  • Contract clauses

8. Public works (4%)

9. Safety (9%)

  • Training
  • Regulations
  • Hazardous materials

10. Legal (14%)

  • Lien law
  • Collections
  • Civil Code
  • Environment
  • Local

*Percentages are approximate*

 

Test Site Policy
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.

 

 

Test Strategy
This examination consists of multiple-choice questions each with four choices per question. Some questions require mathematical calculation. Examination questions are written to provide only one BEST answer and are NOT written as trick questions.

All correct answers have equal value. If you are unsure about a particular question it is better to try to answer the question with the chance of possibly getting it correct (and earning one point) than it is to leave the question blank and definitely get it wrong (and lose one point).

Ample time is provided to answer all examination questions so be sure to read each question and its four choices completely and carefully before selecting your answer.

 

Sample Questions

The following questions are typical of the kind of items that are on the examination. The correct answer is highlighted.

1. 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?

  1. Daily
  2. At least once every ten working days
  3. At least once a month
  4. At least once a quarter

2. Which of the following items is a job-related direct cost?

  1. Trade Association membership dues
  2. Contractor’s license renewal fee
  3. Performance bonds
  4. Office rent

3. What legal remedy can be pursued for nonpayment of funds owed to a contractor from a private job?

  1. Notify the city building official.
  2. File preliminary lien notice.
  3. Perfect the claim of the lien.
  4. File a Stop Notice.

*All questions are written and reviewed by licensed contractors who are actively working in the field*

Resources
California Building Code.
International Code Council,
5360 Workman Mill Road,
Whittier, CA 90601.
(800) 284-4406
FAX: (866) 891-1695
INTERNET: www.iccsafe.org. Click on ICC bookstore.
California Contractors License Law and Reference Book.
Order Fulfillment,
LexisNexis,
1275 Broadway,
Albany, NY 12214-4070.
Make check to “Matthew Bender & Co., Inc.”
(800) 562-1197
FAX: (800) 828-8341
INTERNET: www.lexis.com. Click on “LexisNexis Bookstore” and type “California Contractors” in search box.
Cal/OSHA Construction Safety Orders.
California Code of Regulations, Title 8,
Division 1 – Industrial Relations, Chapter 4, Subchapter 4.
Check payment with order form:
Barclays Law Publishers,
P.O. Box 95767,
Chicago, IL 60694.
(800) 888-3600
FAX: (415) 732-8875
OR
Building News, Inc.,
1612 S. Clementine Street,
Anaheim, CA 92802.
(888) 264-7483
INTERNET: ccr.oal.ca.gov/cgi-bin/om_isapi.dll OR www.bni-books.com
“Greenbook:” Standard Specifications for Public Works Construction.
Building News, Inc.,
1612 S. Clementine Street,
Anaheim, CA 92802.
(888) 264-7483
INTERNET: www.bni-books.com
Home Improvement Contracts: Putting the pieces together.
Contractors State License Board,
9821 Business Park Drive,
Sacramento, CA 95827.
(800) 321-CSLB
INTERNET: www.cslb.ca.gov

*Contact information for the above publishers is current as of 5/05*