2026/2027 Complete Questions and Answers
Detailed Rationales Pass Guaranteed - A+
Graded
TABLE OF CONTENTS
Section 1 | Business & Law (Licensing, Contracts, Liens) | Q1 – Q10
Section 2 | Project Management (Scheduling, Estimating, Safety) | Q11 – Q20
Section 3 | Building Codes & Plan Reading | Q21 – Q30
Section 4 | Sitework, Concrete & Masonry | Q31 – Q40
Section 5 | Wood Framing, Finishes & Mechanicals | Q41 – Q50
Instructions: Choose the single best answer. Pass: 80% in 90 minutes.
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SECTION 1: BUSINESS & LAW (LICENSING, CONTRACTS, LIENS) Q1 – Q10
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Question 1 of 50
A 38-year-old HVAC contractor completes a commercial installation but the general
contractor has not paid the $24,000 balance. He first started furnishing labor and
materials 45 days ago. State law requires a preliminary 20-day notice to preserve lien
rights, and the contractor never sent one.
A. He can file the lien immediately because the work is complete
B. He must file a late preliminary notice and may lose lien rights for work performed
during the first 20 days ✓ CORRECT
C. The general contractor's payment bond covers the full amount automatically
D. Lien rights extend indefinitely until the property owner pays
Correct Answer: B
,Rationale: Most states require preliminary notice within a short window after first
furnishing labor or materials, and late notices typically only preserve rights for work
performed in the preceding 20 days. Payment bonds do not eliminate the need for
proper notice, and lien rights are strictly time-limited by statute. Contractors who miss
preliminary notice deadlines often recover only a fraction of what they are owed.
Question 2 of 50
A 52-year-old homeowner in a state with a $50,000 licensing threshold acts as his own
general contractor to build a $180,000 custom home. He hires licensed subcontractors
for electrical and plumbing but personally manages framing and roofing crews. The
state licensing board investigates.
A. He is exempt because he owns the property and will live in the home
B. He is exempt because he hired licensed subcontractors for all specialty trades
C. He is exempt because the project is residential rather than commercial
D. He is required to hold a general contractor's license because the total project value
exceeds the statutory threshold ✓ CORRECT
Correct Answer: D
Rationale: Most states exempt owner-builders only for personal dwellings below a
certain dollar threshold or require them to obtain permits as owner-builders, but
commercial-scale residential projects exceeding the licensing limit require a licensed
general contractor. Hiring licensed subcontractors does not exempt the person
managing and coordinating the overall construction from licensure. Owner-builder
exemptions vary dramatically by state, and exceeding dollar limits without proper
licensure can result in project stop-work orders.
Question 3 of 50
A 41-year-old developer signs an agreement with a builder to construct a 12-unit
townhouse complex for a guaranteed maximum price of $2.4 million with shared
,savings below that cap. Midway through, steel prices spike 40 percent and the builder
requests additional funds.
A. The builder bears the risk for cost overruns up to the guaranteed maximum price ✓
CORRECT
B. The developer must pay all actual costs plus the builder's fee regardless of the cap
C. The builder can automatically pass through all material escalations under a shared
savings clause
D. The contract converts to time-and-materials when costs exceed 110 percent of the
estimate
Correct Answer: A
Rationale: A guaranteed maximum price contract places the risk of cost overruns on the
contractor up to the agreed cap, while savings below the cap are typically shared.
Cost-plus contracts would require the owner to pay actual costs, and automatic
pass-throughs defeat the purpose of a GMP. Developers favor GMP contracts precisely
because they transfer cost overrun risk to the builder while still incentivizing efficiency
through shared savings.
Question 4 of 50
A 35-year-old commercial property owner becomes dissatisfied with the pace of a retail
fit-out and terminates the general contractor by phone without written notice or cure
period. The contractor had fallen two weeks behind due to delayed owner-provided
lighting fixtures. The contractor sues for wrongful termination.
A. The owner acted properly because schedule delays justify immediate termination
B. The owner is liable only for the value of work completed to date
C. The owner breached the contract by failing to provide written notice and a cure period
✓ CORRECT
D. The contractor's delay automatically converted the contract to an at-will relationship
Correct Answer: C
, Rationale: Standard construction contracts and most state laws require written notice
of default and an opportunity to cure before termination, especially when delays are
caused by the owner's own actions. Termination without following contractual
procedures constitutes a breach, exposing the owner to damages beyond unpaid
contract value. Courts consistently rule that owners who skip notice-and-cure provisions
face liability for the contractor's lost profits and demobilization costs.
Question 5 of 50
A 29-year-old electrical subcontractor on a $4.2 million state courthouse renovation has
not been paid $67,000 by the general contractor. The project is public. He wants to
make a claim against the payment bond.
A. He must sue the general contractor and win a judgment before filing a bond claim
B. He must file a verified bond claim with the surety within the statutory time frame,
typically 90 days after last work ✓ CORRECT
C. He can file a mechanic's lien against the courthouse property
D. He should wait until project closeout because public bonds pay automatically at final
completion
Correct Answer: B
Rationale: Public projects are immune from mechanic's liens, so subcontractors must
pursue claims against the required payment bond within strict statutory deadlines,
usually 90 days after last furnishing labor or materials. Waiting for closeout or pursuing
litigation first often forfeits bond rights. Bond claims are the only security for
subcontractors on public work, and missing the notice deadline by even one day can
extinguish the claim entirely.
Question 6 of 50
A 48-year-old painting contractor hires three crew members, supplies all ladders and
brushes, sets daily start times, requires company shirts, and pays hourly wages. After a