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1. Which of the following best defines a “general contractor”?
A. A subcontractor who specializes in a trade
B. A contractor responsible for the overall coordination of a
project
C. An architect who oversees construction
D. A supplier of construction materials
General contractors are responsible for the management of the
entire construction project, including subcontractors and
schedules.
2. What type of insurance is typically required for contractors in
Georgia?
A. Health insurance
B. Life insurance
C. Workers’ compensation and liability insurance
D. Vehicle insurance
Workers’ compensation covers employees, and liability insurance
protects against claims arising from construction activities.
3. When is a contractor required to obtain a building permit in
Georgia?
, A. Only for residential projects
B. For any construction, alteration, or demolition that affects
structural elements
C. Only for commercial projects
D. Only when working on public property
Building permits ensure compliance with safety codes and local
regulations.
4. Which of the following is considered a bid bond?
A. A warranty for construction materials
B. A guarantee that a contractor will honor their bid if awarded
the contract
C. Insurance for subcontractors
D. A security for equipment rental
A bid bond protects the project owner if the contractor fails to
accept the contract after winning the bid.
5. What is the maximum number of days a contractor has to notify a
homeowner in Georgia of a lien right?
A. 15 days
B. 30 days
C. 60 days
D. 90 days
Georgia law requires notice within 60 days to protect lien rights on
private property.
6. Which type of contract typically provides the greatest risk to a
contractor?
A. Cost-plus contract
B. Lump-sum (fixed-price) contract
, C. Time and materials contract
D. Unit price contract
In lump-sum contracts, the contractor assumes risk for cost
overruns because the price is fixed.
7. How often must a contractor renew their license in Georgia?
A. Annually
B. Every 2 years
C. Every 3 years
D. Every 5 years
Contractor licenses in Georgia are typically valid for three years
before renewal.
8. What is the main purpose of the Georgia Construction Industry
Licensing Board?
A. Issue permits for building materials
B. Provide financing to contractors
C. Regulate and license contractors to protect public safety
D. Determine construction project schedules
The board ensures that licensed contractors meet standards of
skill, safety, and ethics.
9. Which of the following is considered an “unlicensed contracting
activity” in Georgia?
A. Painting a room in your own home
B. Minor plumbing repairs under $100
C. Performing construction valued over $2,500 without a license
D. Installing personal fencing under $500
Georgia law requires licensing for work exceeding $2,500 in total
project cost.