ALABAMA CONTRACTORS EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2025/2026 Q&A | INSTANT
DOWNLOAD PDF
1. What is the primary purpose of a surety bond on a construction project?
A. To finance the project
B. To guarantee project completion and payment of subcontractors
C. To insure the contractor’s equipment
D. To pay for worker’s compensation claims
Surety bonds ensure that contractors fulfill their obligations and pay their
subs and suppliers.
2. Which document outlines the rights and responsibilities between the
owner and contractor?
A. Project manual
B. Subcontractor agreement
C. Owner-contractor agreement
D. Scope of work
This agreement legally binds the contractor and the owner to specific
duties and expectations.
3. Which type of insurance protects a contractor from third-party bodily injury
claims?
, A. Builder’s risk
B. Workers’ compensation
C. General liability
D. Professional liability
General liability covers third-party injury or property damage resulting
from construction activities.
4. In Alabama, who licenses general contractors for commercial work over
$50,000?
A. County government
B. Alabama Licensing Board for General Contractors
C. Secretary of State
D. OSHA
The Alabama Licensing Board for General Contractors regulates and
licenses commercial contractors in Alabama.
5. Which of the following is considered a direct cost in estimating?
A. Labor wages
B. Office rent
C. Accountant fees
D. Office supplies
Labor wages are part of the job-site expenses directly related to project
completion.
6. Which project delivery method includes design and construction under one
contract?
A. Design-bid-build
, B. Design-build
C. CM-at-risk
D. IPD (Integrated Project Delivery)
Design-build combines design and construction services, streamlining
communication and costs.
7. OSHA requires a fall protection system for construction when workers are
at what minimum height?
A. 4 feet
B. 6 feet
C. 8 feet
D. 10 feet
Construction work requires fall protection starting at 6 feet to prevent
injury from falls.
8. Which of the following is NOT included in overhead costs?
A. Job superintendent salary
B. Office rent
C. Bricklayers’ wages
D. Legal fees
Bricklayers' wages are direct labor costs, not overhead.
9. What is retainage in construction?
A. An insurance policy
B. Early payment discount
C. A portion of the payment withheld until project completion
D. Additional interest charges
CORRECT ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2025/2026 Q&A | INSTANT
DOWNLOAD PDF
1. What is the primary purpose of a surety bond on a construction project?
A. To finance the project
B. To guarantee project completion and payment of subcontractors
C. To insure the contractor’s equipment
D. To pay for worker’s compensation claims
Surety bonds ensure that contractors fulfill their obligations and pay their
subs and suppliers.
2. Which document outlines the rights and responsibilities between the
owner and contractor?
A. Project manual
B. Subcontractor agreement
C. Owner-contractor agreement
D. Scope of work
This agreement legally binds the contractor and the owner to specific
duties and expectations.
3. Which type of insurance protects a contractor from third-party bodily injury
claims?
, A. Builder’s risk
B. Workers’ compensation
C. General liability
D. Professional liability
General liability covers third-party injury or property damage resulting
from construction activities.
4. In Alabama, who licenses general contractors for commercial work over
$50,000?
A. County government
B. Alabama Licensing Board for General Contractors
C. Secretary of State
D. OSHA
The Alabama Licensing Board for General Contractors regulates and
licenses commercial contractors in Alabama.
5. Which of the following is considered a direct cost in estimating?
A. Labor wages
B. Office rent
C. Accountant fees
D. Office supplies
Labor wages are part of the job-site expenses directly related to project
completion.
6. Which project delivery method includes design and construction under one
contract?
A. Design-bid-build
, B. Design-build
C. CM-at-risk
D. IPD (Integrated Project Delivery)
Design-build combines design and construction services, streamlining
communication and costs.
7. OSHA requires a fall protection system for construction when workers are
at what minimum height?
A. 4 feet
B. 6 feet
C. 8 feet
D. 10 feet
Construction work requires fall protection starting at 6 feet to prevent
injury from falls.
8. Which of the following is NOT included in overhead costs?
A. Job superintendent salary
B. Office rent
C. Bricklayers’ wages
D. Legal fees
Bricklayers' wages are direct labor costs, not overhead.
9. What is retainage in construction?
A. An insurance policy
B. Early payment discount
C. A portion of the payment withheld until project completion
D. Additional interest charges
