WISCONSIN DWELLING CONTRACTOR
QUALIFIER PRE-LICENSE EXAM 2026-
2027 STUDY GUIDE QUESTIONS AND
ANSWERS| CONSTRUCTION LAWS AND
PRACTICES
What is a cost plus percentage contract? Correct Answer
A cost plus percentage contract is similar to a cost plus
fee contract, except that the fee is a percentage of the
costs.
How is the fee determined in a cost plus percentage
contract? Correct Answer The fee may be a fixed or
variable percentage of the costs, and it is always
prescribed in the contract.
What additional terms may be included in a cost plus
percentage contract? Correct Answer Fee limits, bonuses
for completing ahead of schedule, penalties for late
completion, and a cost ceiling may also be included.
When is a cost plus percentage contract more desirable?
Correct Answer A cost plus percentage contract is more
desirable when an accurate cost estimate is not possible,
such as in rebuilding after a disaster.
What type of fee is usually included when the contractor
can provide a good estimate of project costs? Correct
,Answer When the contractor can provide a good estimate,
the contract will usually include a fixed fee.
Multiple Prime Contractors Correct Answer In instances
when the project is extremely demanding and requires
more expertise than is available from a single contractor,
the owner or agency may assume the responsibility to
coordinate and manage the project. The owner or owners
representative will call for separate bids for each part of
the project. Each contract must specify the relationships
between the prime contractors and their responsibility for
any interference with each other.
Breach of Contract Correct Answer A contract breach is a
failure to perform to the contract. In the profession of
contracting, there may be two levels of contract breach:
material and immaterial.
What is a material breach of contract? Correct Answer A
material breach is a significant violation of the contract that
gives the other party a right to stop further performance
and sue for damages.
What happens if a material breach occurs? Correct
Answer The other party has the right to stop further
performance and sue for damages.
Give an example of a material breach by the owner.
Correct Answer The owner locking the contractor out of
the job site, preventing the contractor from performing the
work agreed upon.
,Give an example of a material breach by the owner related
to payment. Correct Answer The owner refusing to pay for
work done.
Give an example of a material breach by the contractor.
Correct Answer The contractor refusing to build in
accordance with the specifications of the contract.
What is an immaterial breach of contract? Correct Answer
An immaterial breach is a minor or inconsequential
violation of the contract that does not allow the other party
to stop further performance.
Can a contractor stop work due to an immaterial breach?
Correct Answer No, an immaterial breach does not allow
the other party to stop further performance.
What is an example of an immaterial breach? Correct
Answer A painter using the wrong trim color is an example
of an immaterial breach.
What must the offending party be given in the case of an
immaterial breach? Correct Answer The offending party
must be given an opportunity to resolve the problem and
make things right.
What can happen if an immaterial breach is not corrected?
Correct Answer If not corrected, an immaterial breach may
become a material breach and can become grounds for a
lawsuit.
, What type of excuse is required for actions taken in a
breach of contract? Correct Answer There must be a legal
excuse for the actions, not an emotional one.
What should a contractor do if involved in a perceived
breach? Correct Answer The contractor should attempt to
resolve the issue with the owner, document the resolution,
and seek advice from an attorney.
What is the guiding principle when dealing with contract
breaches? Correct Answer The guiding principle is to work
to the contract and resolve differences as work proceeds.
What is a breach of contract? Correct Answer A breach of
contract occurs when one party violates the terms of the
contract so severely that it affects the contract's
enforceability.
Under what conditions can a contract be terminated?
Correct Answer A contract can be terminated if one party
breaches the terms so badly that the contract is no longer
salvageable.
What must be included in a contract termination due to
breach? Correct Answer Termination of the contract must
include significant evidence of the breach.
What can happen if a contract is invalidly terminated?
Correct Answer An invalid termination can lead to litigation
and punitive damages.
QUALIFIER PRE-LICENSE EXAM 2026-
2027 STUDY GUIDE QUESTIONS AND
ANSWERS| CONSTRUCTION LAWS AND
PRACTICES
What is a cost plus percentage contract? Correct Answer
A cost plus percentage contract is similar to a cost plus
fee contract, except that the fee is a percentage of the
costs.
How is the fee determined in a cost plus percentage
contract? Correct Answer The fee may be a fixed or
variable percentage of the costs, and it is always
prescribed in the contract.
What additional terms may be included in a cost plus
percentage contract? Correct Answer Fee limits, bonuses
for completing ahead of schedule, penalties for late
completion, and a cost ceiling may also be included.
When is a cost plus percentage contract more desirable?
Correct Answer A cost plus percentage contract is more
desirable when an accurate cost estimate is not possible,
such as in rebuilding after a disaster.
What type of fee is usually included when the contractor
can provide a good estimate of project costs? Correct
,Answer When the contractor can provide a good estimate,
the contract will usually include a fixed fee.
Multiple Prime Contractors Correct Answer In instances
when the project is extremely demanding and requires
more expertise than is available from a single contractor,
the owner or agency may assume the responsibility to
coordinate and manage the project. The owner or owners
representative will call for separate bids for each part of
the project. Each contract must specify the relationships
between the prime contractors and their responsibility for
any interference with each other.
Breach of Contract Correct Answer A contract breach is a
failure to perform to the contract. In the profession of
contracting, there may be two levels of contract breach:
material and immaterial.
What is a material breach of contract? Correct Answer A
material breach is a significant violation of the contract that
gives the other party a right to stop further performance
and sue for damages.
What happens if a material breach occurs? Correct
Answer The other party has the right to stop further
performance and sue for damages.
Give an example of a material breach by the owner.
Correct Answer The owner locking the contractor out of
the job site, preventing the contractor from performing the
work agreed upon.
,Give an example of a material breach by the owner related
to payment. Correct Answer The owner refusing to pay for
work done.
Give an example of a material breach by the contractor.
Correct Answer The contractor refusing to build in
accordance with the specifications of the contract.
What is an immaterial breach of contract? Correct Answer
An immaterial breach is a minor or inconsequential
violation of the contract that does not allow the other party
to stop further performance.
Can a contractor stop work due to an immaterial breach?
Correct Answer No, an immaterial breach does not allow
the other party to stop further performance.
What is an example of an immaterial breach? Correct
Answer A painter using the wrong trim color is an example
of an immaterial breach.
What must the offending party be given in the case of an
immaterial breach? Correct Answer The offending party
must be given an opportunity to resolve the problem and
make things right.
What can happen if an immaterial breach is not corrected?
Correct Answer If not corrected, an immaterial breach may
become a material breach and can become grounds for a
lawsuit.
, What type of excuse is required for actions taken in a
breach of contract? Correct Answer There must be a legal
excuse for the actions, not an emotional one.
What should a contractor do if involved in a perceived
breach? Correct Answer The contractor should attempt to
resolve the issue with the owner, document the resolution,
and seek advice from an attorney.
What is the guiding principle when dealing with contract
breaches? Correct Answer The guiding principle is to work
to the contract and resolve differences as work proceeds.
What is a breach of contract? Correct Answer A breach of
contract occurs when one party violates the terms of the
contract so severely that it affects the contract's
enforceability.
Under what conditions can a contract be terminated?
Correct Answer A contract can be terminated if one party
breaches the terms so badly that the contract is no longer
salvageable.
What must be included in a contract termination due to
breach? Correct Answer Termination of the contract must
include significant evidence of the breach.
What can happen if a contract is invalidly terminated?
Correct Answer An invalid termination can lead to litigation
and punitive damages.
