Law 1 Part 3

Flashcards cover licensing, bonding, estimating, insurance, legal compliance, safety, and project-management topics likely to appear on the Law & Business Test 2.

What is the best way to avoid any suspension when renewing a contractor’s license bond?

Make the effective date of the new bond the SAME as the cancellation date of the old bond.

If direct costs are $7,200 and overhead is 12% and profit is 10% of the selling price, what is the selling price?

$9,230.77

A home-improvement salesperson (HIS) registration must be renewed every .

Two years

May an RME who already qualifies one active license also bid weekend work under a second, individual license?

No. The RME may qualify only the existing license in this situation.

Under special conditions, how many firms may a qualifier serve within any one-year period?

Up to three firms

Using money from a current job to finance an unrelated project is called .

Diversion

Filing a stop-payment notice on a public project creates a lien on what?

The construction funds (money due on the project)

Besides workers’ compensation, what insurance is required on a public-works project?

Liability insurance

After a remodel, how long does a client have to make a claim for service or repair of a fit-and-finish defect?

One year

Small-Claims Court may dismiss a contractor’s suit if the contractor .

Was unlicensed while performing a contract of $500 or more

Which cost item is usually the most difficult to estimate accurately?

Labor

Except in an emergency, you must notify Underground Service Alert at least how far in advance of excavation?

At least two working days, but not more than 14 calendar days, before digging

Excavators are required to mark the boundaries of a work area with what color paint?

White paint

What happens to a partnership contractor’s license if a general partner leaves or dies?

The partnership license is cancelled.

Which single piece of employee information may an employer legally disclose?

The employee’s name

For how many years must a contractor keep employee payroll records?

Three years

When facing temporary cash-flow problems, which financing method is generally recommended?

Use funds from a pre-established line of credit

, although often the largest single line item in a bid, can be determined fairly accurately.

Materials

Disabled-access laws took effect in for public buildings and in for private buildings.

1970 (public) and 1971 (private)

When an owner claims completed work is incorrect and you are at a critical project point, what should you do?

Stop the critical task and remedy the error immediately.

What is the best tool for monitoring and analyzing labor costs on a job?

Detailed time cards that break down tasks for each worker

If unsafe or faulty equipment is discovered on site, who must correct the problem?

The contractor

Retention money on most construction contracts can be held for up to days after the prime pays subs and suppliers.

60 days

How often must the designated safety supervisor be on the job site?

As often as necessary—it depends on the work being performed

If an employee files a safety complaint with DOSH, what will DOSH do about disclosing the employee’s identity?

Keep the complainant’s name confidential and prohibit retaliation.