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Indiana General Contractor Exam— COMPLETE QUESTIONS
AND DETAILED SOLUTIONS LATEST UPDATE THIS YEAR-JUST
RELEASED
Indiana General Contractor Exam
SUMMARIZED EXAM TOPICS COVERED (POINT FORM)
Based on Indiana state and local licensing requirements, the exam covers the following core areas:
• Building Codes & Standards: Indiana Building Code (based on IBC 2017 with state amendments),
Indiana Residential Code (IRC 2017), 2012 International Building Code (varies by local
jurisdiction). Key sections: R305.1 (ceiling height-7 ft minimum), R311.7.5.1 (stair tread width-10
inches minimum), R401.2.1 (insulation R-values-Climate Zone 5 requires R-13 cavity).
• Contractor Licensing & Business Registration: State-level business entity registration through
Indiana Secretary of State (for LLCs, corporations, partnerships); local municipal licensing varies
(Allen County, Marion County, Vanderburgh County, etc.). Class A (unlimited value) vs. Class B
(100,000limit)[citation:3].Suretybondrequirementstypically100,000limit)[citation:3].Suretybondr
equirementstypically25,000.
• Indiana Home Improvement Contracts Act (HICA): Three-day right of rescission for contracts
signed away from contractor's place of business; cancellation must be in writing by midnight of
third business day.
• Mechanics' Liens (I.C. 32-28-3-3): Must file within 60 days of last work performed. Preliminary
notice required for residential projects.
• Builder's Trust Fund Act (I.C. 22-13-2-2): Funds paid for specific project held in trust;
misapplication (using for other projects) is a criminal offense-Level 6 felony for amounts $750+.
• OSHA Safety Standards (29 CFR 1926): Fall protection (guardrails 42±3 inches), trench safety (>5
ft requires protective system), confined space protocols.
• Construction Management: Blueprint reading (symbols: CL=center line, NTS=not to scale),
project phases (planning, design, construction), change orders, contract scope definition,
subcontractor management.
• Structural Components: Concrete footings (minimum 36 inches below frost line in Indiana),
rebar reinforcement, load-bearing walls, sill plates, LVL beams, framing systems.
• Insurance Requirements: General liability insurance (100,000−100,000−300,000 per occurrence
typical); workers' compensation (required for any employee); bond requirements vary by
locality.
• Plan Reading & Estimating: Blueprint interpretation (architectural, structural, mechanical
plans); "bottom-up" cost estimating (direct labor costs first); quantity takeoffs for concrete,
lumber, roofing.
• Permits & Inspections: Building permits required before construction; permit inspections verify
code compliance; site inspection protocols.
QUESTIONS 1-250
1. A homeowner signs a contract for a $22,000 kitchen remodel on a Sunday afternoon at the
contractor's office. The homeowner calls the contractor on Tuesday to cancel. Is the cancellation valid?
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A) Yes, the homeowner has 3 business days to cancel any home improvement contract.
B) No, the 3-day right of rescission applies only when the contract is signed away from the contractor's
regular place of business.
C) Yes, the homeowner has 5 business days to cancel a contract valued over $10,000.
D) No, the right of rescission applies only to contracts signed at the homeowner's residence.
Answer: B
Rationale: Under the Indiana Home Improvement Contracts Act (HICA), cancellation rights apply only to
contracts signed "away from the contractor's regular place of business." A contract signed at the
contractor's office does not trigger the three-day rescission period.
2. A general contractor in Indiana has total annual payroll of $500,000 and 15 employees. What is the
contractor's responsibility regarding workers' compensation insurance?
A) Not required because payroll exceeds $100,000 annually
B) Required only for employees working at heights over 10 feet
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C) Required for every employer with one or more employees
D) Exempt because it is a general contractor
Answer: C
Rationale: Indiana law (I.C. 22-3-2-2) requires every employer with one or more employees to obtain
workers' compensation insurance to cover employees for work-related injuries.
3. A homeowner pays a contractor a $15,000 deposit for a basement finish. The contractor immediately
uses the money to pay his personal credit card bill. Has the contractor violated any law?
A) No, because the deposit is less than 20% of the contract price.
B) Yes, the contractor misapplied trust funds, which is a criminal offense-Level 6 felony for amounts over
$750.
C) Is legal because the contractor can use the funds for any business expense.
D) Is only a breach of contract.
Answer: B
Rationale: Under the Builders Trust Fund Act (I.C. 22-13-2-2), funds paid to a contractor for a specific
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project are held in trust. Using funds for any other purpose is criminal; amounts $750 or more constitute
a Level 6 felony.
4. A general contractor is bidding on a commercial building project valued at $2,500,000. What
classification of contractor is required by Indiana law?
A) Class B (up to $100,000)
B) Class A (unlimited value)
C) No license is required for commercial projects
D) A specialty contractor classification
Answer: B
Rationale: Class A general contractors have no project dollar limit. Class B is restricted to projects up
to 100,000.A100,000.A2.5 million project requires a Class A license.
Indiana General Contractor Exam— COMPLETE QUESTIONS
AND DETAILED SOLUTIONS LATEST UPDATE THIS YEAR-JUST
RELEASED
Indiana General Contractor Exam
SUMMARIZED EXAM TOPICS COVERED (POINT FORM)
Based on Indiana state and local licensing requirements, the exam covers the following core areas:
• Building Codes & Standards: Indiana Building Code (based on IBC 2017 with state amendments),
Indiana Residential Code (IRC 2017), 2012 International Building Code (varies by local
jurisdiction). Key sections: R305.1 (ceiling height-7 ft minimum), R311.7.5.1 (stair tread width-10
inches minimum), R401.2.1 (insulation R-values-Climate Zone 5 requires R-13 cavity).
• Contractor Licensing & Business Registration: State-level business entity registration through
Indiana Secretary of State (for LLCs, corporations, partnerships); local municipal licensing varies
(Allen County, Marion County, Vanderburgh County, etc.). Class A (unlimited value) vs. Class B
(100,000limit)[citation:3].Suretybondrequirementstypically100,000limit)[citation:3].Suretybondr
equirementstypically25,000.
• Indiana Home Improvement Contracts Act (HICA): Three-day right of rescission for contracts
signed away from contractor's place of business; cancellation must be in writing by midnight of
third business day.
• Mechanics' Liens (I.C. 32-28-3-3): Must file within 60 days of last work performed. Preliminary
notice required for residential projects.
• Builder's Trust Fund Act (I.C. 22-13-2-2): Funds paid for specific project held in trust;
misapplication (using for other projects) is a criminal offense-Level 6 felony for amounts $750+.
• OSHA Safety Standards (29 CFR 1926): Fall protection (guardrails 42±3 inches), trench safety (>5
ft requires protective system), confined space protocols.
• Construction Management: Blueprint reading (symbols: CL=center line, NTS=not to scale),
project phases (planning, design, construction), change orders, contract scope definition,
subcontractor management.
• Structural Components: Concrete footings (minimum 36 inches below frost line in Indiana),
rebar reinforcement, load-bearing walls, sill plates, LVL beams, framing systems.
• Insurance Requirements: General liability insurance (100,000−100,000−300,000 per occurrence
typical); workers' compensation (required for any employee); bond requirements vary by
locality.
• Plan Reading & Estimating: Blueprint interpretation (architectural, structural, mechanical
plans); "bottom-up" cost estimating (direct labor costs first); quantity takeoffs for concrete,
lumber, roofing.
• Permits & Inspections: Building permits required before construction; permit inspections verify
code compliance; site inspection protocols.
QUESTIONS 1-250
1. A homeowner signs a contract for a $22,000 kitchen remodel on a Sunday afternoon at the
contractor's office. The homeowner calls the contractor on Tuesday to cancel. Is the cancellation valid?
, Page 2 of 175
A) Yes, the homeowner has 3 business days to cancel any home improvement contract.
B) No, the 3-day right of rescission applies only when the contract is signed away from the contractor's
regular place of business.
C) Yes, the homeowner has 5 business days to cancel a contract valued over $10,000.
D) No, the right of rescission applies only to contracts signed at the homeowner's residence.
Answer: B
Rationale: Under the Indiana Home Improvement Contracts Act (HICA), cancellation rights apply only to
contracts signed "away from the contractor's regular place of business." A contract signed at the
contractor's office does not trigger the three-day rescission period.
2. A general contractor in Indiana has total annual payroll of $500,000 and 15 employees. What is the
contractor's responsibility regarding workers' compensation insurance?
A) Not required because payroll exceeds $100,000 annually
B) Required only for employees working at heights over 10 feet
, Page 3 of 175
C) Required for every employer with one or more employees
D) Exempt because it is a general contractor
Answer: C
Rationale: Indiana law (I.C. 22-3-2-2) requires every employer with one or more employees to obtain
workers' compensation insurance to cover employees for work-related injuries.
3. A homeowner pays a contractor a $15,000 deposit for a basement finish. The contractor immediately
uses the money to pay his personal credit card bill. Has the contractor violated any law?
A) No, because the deposit is less than 20% of the contract price.
B) Yes, the contractor misapplied trust funds, which is a criminal offense-Level 6 felony for amounts over
$750.
C) Is legal because the contractor can use the funds for any business expense.
D) Is only a breach of contract.
Answer: B
Rationale: Under the Builders Trust Fund Act (I.C. 22-13-2-2), funds paid to a contractor for a specific
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project are held in trust. Using funds for any other purpose is criminal; amounts $750 or more constitute
a Level 6 felony.
4. A general contractor is bidding on a commercial building project valued at $2,500,000. What
classification of contractor is required by Indiana law?
A) Class B (up to $100,000)
B) Class A (unlimited value)
C) No license is required for commercial projects
D) A specialty contractor classification
Answer: B
Rationale: Class A general contractors have no project dollar limit. Class B is restricted to projects up
to 100,000.A100,000.A2.5 million project requires a Class A license.
