Utah Contractor Exam (Real)
Depreciation is taken on which of the company's assets?
a. Loans
b. Current assets
c. Fixed assets
d. None of the above - answerC ... Explanation: Depreciation is counted from fixed
assets.
A private employer who employs __ or more people as of July 1, 2010, may not hire a
new employee unless the employer is registered with and uses a status verification
system such as E -Verify to verify the federal legal working status of any new employee.
a. 5
b. 10
c. 15
d. 1 - answerC ... Explanation: A private employer who employs 15 or more people as of
July 1, 2010, may not hire a new employee unless the employer is registered with and
uses a status verification system such as E -Verify to verify the federal legal working
status of any new employee.
If a contractor decides to increase the contract price, the contractor:
a. Should get a loan from the bank
b. May request assistance from the subcontractor
c. And the owner must agree to a written and signed change order
d. Should request the building inspector to revise the specifications - answerC ...
Explanation: A written and signed change order can allow the contractor to change a
contract price.
If a subcontractor signs an unconditional waiver and release, this would imply that a:
a. Subcontractor cannot ask anything more of the owner
b. Owner cannot ask anything more of the subcontractor
c. Subcontractor cannot get anything from the prime
d. Subcontractor cannot ask anything more of the prime - answerA ... Explanation: Once
the subcontractor signs an unconditional waiver and release, the subcontractor cannot
ask anything more of the owner.
Any applicant who has been denied a license to practice on the basis of credentials, or
failure to pass a required examination, may submit a request for agency review to the
executive director ____ following notification of the denial of a license or refusal to
renew or reinstate a license.
a. Within 10 days
b. Within 20 days
c. Within 30 days
,d. Within 60 days - answer5. C ... Explanation: Any applicant who has been denied a
license to practice on the basis of credentials, character, or failure to pass a required
examination, or who has been refused renewal or reinstatement of a license to practice
on the basis that the applicant does not meet qualifications for continued licensure in
any occupation or profession under the jurisdiction of the division may submit a request
for agency review to the executive director within 30 days following notification of the
denial of a license or refusal to renew or reinstate a license.
What should a contractor do if after starting a home improvement project the contractor
discovers that the details and specifications do NOT correctly show the existing
construction?
a. Stop and work on a correction
b. Stop the job and inform the owner or his agent
c. Continue the work if variations are only minor
d. Stop the job and inform the Building Department - answerB ... Explanation: Any
details and specifications are not represented correctly then it is the contractor's duty to
inform the owner or his agent.
Keeping good accounting records is important for:
a. Maintaining financial statements
b. Obtaining financing
c. Effective management
d. All of the above - answerD ... Explanation: Effective management, maintaining
financial statements and obtaining proper financing are all the result of keeping good
accounting records.
8. The promise by a party called the guarantor to make good the mistake, debt, or
default of another party found in the construction contract law is called:
a. Surety
b. Guarantee
c. Warrantee
d. Agreement - answerB ... Explanation: Guarantee.
9. The plans and specifications of a home improvement project usually describe:
a. Layout sizes
b. Liquidated damages
c. Consent to arbitrate
d. Neighborhood regulations - answer9. A ... Explanation: Layout sizes are usually
described in plans and specifications of home improvement projects.
The number of years that an employer must keep records of FUTA and other federal
taxes is:
a. 2 years
b. 4 years
c. 6 years
,d. 10 years - answerB ... Explanation: 4 years is the amount of time an employer must
keep records of FUTA and other federal taxes.
Page: 5-2
What is the term for a detailed compilation of the quantity of each elemental work item?
a. Summary sheet
b. Bid invitation
c. Takeoff
d. Specification - answerC ... Explanation: Estimators use construction blueprints, either
manually or electronically, and start "taking off" quantities of items they will need from
those blueprints in order to prepare part of the estimate.
Page: 6-3
Before beginning work, an employer or contractor must inquire whether asbestos is
present in any building constructed prior to:
a. 1990
b. 1987
c. 1978
d. 1979 - answerC ... Explanation: Buildings prior to 1978 may contain asbestos.
Page: 4-5
Important thing to include when advertising for construction work is:
a. The company's complete name style
b. A list of all the owners of the company
c. The contractor's license number
d. The company's address - answerC ... Explanation: A contractor's license number
should be presented when advertising for legitimacy purposes.
Which type of specification is most commonly used for public work?
a. Bidder's choice
b. Restricted
c. Closed
d. Open - answerD ... Explanation: Open.
______ you pass the state required exams, all applicants must complete the required
application to obtain a contractor license. The contractor application consists of
numerous pages of information you must fill out completely and correctly or you will be
denied a license.
a. After
b. Before
c. Both A and B
d. None of the above - answerA ... Explanation: After you pass the state required
exams, all applicants must complete the required application to obtain a contractor
, license. The contractor application consists of numerous pages of information you must
fill out completely and correctly or you will be denied a license.
The best way to determine if a contractor is duly licensed?
a. Ask the contractor if he is licensed
b. Look at the contractor's pocket license
c. Ask to see the contractor's license bond
d. Call the Utah Department of Professional Licensing - answerD ... Explanation: The
Utah Department of Professional Licensing has records of all licensed construction
personnel and is the best place to see if someone is licensed.
A ___________ is needed if an owner wants a contractor to start earlier before the
formalities associated with the signing of the contract can be completed.
a. Writ of mediation
b. Proviso of estoppel
c. Escape clause
d. Letter of intent - answerD ... Explanation: A new contract specifying the new time or a
letter of intent can be written if the owner wants the contractor to start work earlier than
the indicated time.
_____ your application is submitted to the D.O.P.L. you must purchase the required
public liability insurance.
a. After
b. Before
c. Both A and B
d. None of the above - answerB ... Explanation: Before your application is submitted to
the D.O.P.L. you must purchase the required public liability insurance.
Which can be said about fixed expenses?
a. Overhead is generally considered a fixed expense
b. Fixed expenses vary over time
c. Direct labor is generally considered a fixed expense
d. Fixed expenses usually amount to less than 10% of total expenses - answerA ...
Explanation: In this case a fixed expense is considered to be overhead costs.
One way of guaranteeing project completion and correction of defects is by withholding
funds which is also called:
a. Stipulation
b. Retention
c. Umbrage
d. Remainder - answerB ... Explanation: Retention is the process of not paying in order
for the project to be completed.
_________ defines the total financial resources available to the contractor.
a. Accounting losses
b. Positive financial Ratios
Depreciation is taken on which of the company's assets?
a. Loans
b. Current assets
c. Fixed assets
d. None of the above - answerC ... Explanation: Depreciation is counted from fixed
assets.
A private employer who employs __ or more people as of July 1, 2010, may not hire a
new employee unless the employer is registered with and uses a status verification
system such as E -Verify to verify the federal legal working status of any new employee.
a. 5
b. 10
c. 15
d. 1 - answerC ... Explanation: A private employer who employs 15 or more people as of
July 1, 2010, may not hire a new employee unless the employer is registered with and
uses a status verification system such as E -Verify to verify the federal legal working
status of any new employee.
If a contractor decides to increase the contract price, the contractor:
a. Should get a loan from the bank
b. May request assistance from the subcontractor
c. And the owner must agree to a written and signed change order
d. Should request the building inspector to revise the specifications - answerC ...
Explanation: A written and signed change order can allow the contractor to change a
contract price.
If a subcontractor signs an unconditional waiver and release, this would imply that a:
a. Subcontractor cannot ask anything more of the owner
b. Owner cannot ask anything more of the subcontractor
c. Subcontractor cannot get anything from the prime
d. Subcontractor cannot ask anything more of the prime - answerA ... Explanation: Once
the subcontractor signs an unconditional waiver and release, the subcontractor cannot
ask anything more of the owner.
Any applicant who has been denied a license to practice on the basis of credentials, or
failure to pass a required examination, may submit a request for agency review to the
executive director ____ following notification of the denial of a license or refusal to
renew or reinstate a license.
a. Within 10 days
b. Within 20 days
c. Within 30 days
,d. Within 60 days - answer5. C ... Explanation: Any applicant who has been denied a
license to practice on the basis of credentials, character, or failure to pass a required
examination, or who has been refused renewal or reinstatement of a license to practice
on the basis that the applicant does not meet qualifications for continued licensure in
any occupation or profession under the jurisdiction of the division may submit a request
for agency review to the executive director within 30 days following notification of the
denial of a license or refusal to renew or reinstate a license.
What should a contractor do if after starting a home improvement project the contractor
discovers that the details and specifications do NOT correctly show the existing
construction?
a. Stop and work on a correction
b. Stop the job and inform the owner or his agent
c. Continue the work if variations are only minor
d. Stop the job and inform the Building Department - answerB ... Explanation: Any
details and specifications are not represented correctly then it is the contractor's duty to
inform the owner or his agent.
Keeping good accounting records is important for:
a. Maintaining financial statements
b. Obtaining financing
c. Effective management
d. All of the above - answerD ... Explanation: Effective management, maintaining
financial statements and obtaining proper financing are all the result of keeping good
accounting records.
8. The promise by a party called the guarantor to make good the mistake, debt, or
default of another party found in the construction contract law is called:
a. Surety
b. Guarantee
c. Warrantee
d. Agreement - answerB ... Explanation: Guarantee.
9. The plans and specifications of a home improvement project usually describe:
a. Layout sizes
b. Liquidated damages
c. Consent to arbitrate
d. Neighborhood regulations - answer9. A ... Explanation: Layout sizes are usually
described in plans and specifications of home improvement projects.
The number of years that an employer must keep records of FUTA and other federal
taxes is:
a. 2 years
b. 4 years
c. 6 years
,d. 10 years - answerB ... Explanation: 4 years is the amount of time an employer must
keep records of FUTA and other federal taxes.
Page: 5-2
What is the term for a detailed compilation of the quantity of each elemental work item?
a. Summary sheet
b. Bid invitation
c. Takeoff
d. Specification - answerC ... Explanation: Estimators use construction blueprints, either
manually or electronically, and start "taking off" quantities of items they will need from
those blueprints in order to prepare part of the estimate.
Page: 6-3
Before beginning work, an employer or contractor must inquire whether asbestos is
present in any building constructed prior to:
a. 1990
b. 1987
c. 1978
d. 1979 - answerC ... Explanation: Buildings prior to 1978 may contain asbestos.
Page: 4-5
Important thing to include when advertising for construction work is:
a. The company's complete name style
b. A list of all the owners of the company
c. The contractor's license number
d. The company's address - answerC ... Explanation: A contractor's license number
should be presented when advertising for legitimacy purposes.
Which type of specification is most commonly used for public work?
a. Bidder's choice
b. Restricted
c. Closed
d. Open - answerD ... Explanation: Open.
______ you pass the state required exams, all applicants must complete the required
application to obtain a contractor license. The contractor application consists of
numerous pages of information you must fill out completely and correctly or you will be
denied a license.
a. After
b. Before
c. Both A and B
d. None of the above - answerA ... Explanation: After you pass the state required
exams, all applicants must complete the required application to obtain a contractor
, license. The contractor application consists of numerous pages of information you must
fill out completely and correctly or you will be denied a license.
The best way to determine if a contractor is duly licensed?
a. Ask the contractor if he is licensed
b. Look at the contractor's pocket license
c. Ask to see the contractor's license bond
d. Call the Utah Department of Professional Licensing - answerD ... Explanation: The
Utah Department of Professional Licensing has records of all licensed construction
personnel and is the best place to see if someone is licensed.
A ___________ is needed if an owner wants a contractor to start earlier before the
formalities associated with the signing of the contract can be completed.
a. Writ of mediation
b. Proviso of estoppel
c. Escape clause
d. Letter of intent - answerD ... Explanation: A new contract specifying the new time or a
letter of intent can be written if the owner wants the contractor to start work earlier than
the indicated time.
_____ your application is submitted to the D.O.P.L. you must purchase the required
public liability insurance.
a. After
b. Before
c. Both A and B
d. None of the above - answerB ... Explanation: Before your application is submitted to
the D.O.P.L. you must purchase the required public liability insurance.
Which can be said about fixed expenses?
a. Overhead is generally considered a fixed expense
b. Fixed expenses vary over time
c. Direct labor is generally considered a fixed expense
d. Fixed expenses usually amount to less than 10% of total expenses - answerA ...
Explanation: In this case a fixed expense is considered to be overhead costs.
One way of guaranteeing project completion and correction of defects is by withholding
funds which is also called:
a. Stipulation
b. Retention
c. Umbrage
d. Remainder - answerB ... Explanation: Retention is the process of not paying in order
for the project to be completed.
_________ defines the total financial resources available to the contractor.
a. Accounting losses
b. Positive financial Ratios
