Free Contractor License Practice Test (20 Questions)

Question 1

Which federal agency establishes and enforces workplace safety and health regulations for the construction industry?

Accepted Answer

OSHA (Occupational Safety and Health Administration)

Answer

EPA (Environmental Protection Agency)

Answer

NLRB (National Labor Relations Board)

Answer

DOT (Department of Transportation)

Question 2

Which of the following best defines 'overhead' in a construction estimate?

Accepted Answer

Business costs that cannot be charged directly to a single project

Answer

The direct cost of materials installed on the project

Answer

The hourly wage paid to field workers

Answer

The profit margin added on top of all costs

Question 3

In building code terminology, what does 'means of egress' refer to?

Accepted Answer

The continuous, unobstructed path from any point in a building to a public way in an emergency

Answer

The electrical system's grounding path

Answer

The method used to waterproof a foundation

Answer

The rated load capacity of a floor system

Question 4

A performance bond on a construction project primarily protects the owner against which risk?

Accepted Answer

The contractor failing to complete the project according to the contract terms

Answer

The contractor's workers being injured on the job

Answer

Subcontractors filing mechanics' liens against the property

Answer

Damage to adjacent property caused by construction operations

Question 5

A laborer earns a base wage of $20.00 per hour. The employer pays 7.65% for FICA taxes, 3% for workers' compensation insurance, and $1.50 per hour for fringe benefits. What is the fully-burdened labor cost per hour?

Accepted Answer

$23.63

Answer

$22.50

Answer

$24.63

Answer

$23.03

Question 6

A new commercial assembly occupancy (Group A-2) has a calculated occupant load of 400 persons and three exits. Using a door-width factor of 0.2 inches per person, what is the minimum aggregate clear width required across all exits combined?

Accepted Answer

80 inches

Answer

60 inches

Answer

100 inches

Answer

120 inches

Question 7

Which type of business entity provides its owners with personal liability protection while allowing profits and losses to pass directly to the owners' personal tax returns?

Accepted Answer

Limited Liability Company (LLC)

Answer

Sole proprietorship

Answer

General partnership

Answer

C Corporation

Question 8

A contractor is classified as an S Corporation for tax purposes. The owner-operator pays himself a reasonable salary of $80,000 per year and takes an additional $60,000 distribution from profits. Which of the following best describes the tax treatment of the $60,000 distribution?

Accepted Answer

It passes through to the owner's personal return and is generally not subject to self-employment tax

Answer

It is subject to self-employment tax as ordinary income

Answer

It is taxed at the corporate rate before distribution

Answer

It is entirely tax-exempt as a return of capital

Question 9

A building's 'occupancy classification' under the model building codes primarily determines which of the following?

Accepted Answer

The required fire and life-safety features based on how the building will be used

Answer

The assessed tax value of the property

Answer

The number of parking spaces the site must provide

Answer

The architectural style permitted by the homeowners association

Question 10

A contractor is building a two-story wood-frame structure. The architect's plans call for a load-bearing wall to be removed on the ground floor to create an open floor plan. Which is the MOST critical structural consideration?

Accepted Answer

Designing and installing a properly sized beam to carry the loads previously carried by the wall, with adequate support columns and foundation bearing

Answer

Choosing an interior paint color that reflects heat load

Answer

Installing additional electrical outlets in the new open space

Answer

Replacing all drywall with a fire-rated assembly regardless of occupancy

Free Contractor License Practice Test

Question 1

Which federal agency establishes and enforces workplace safety and health regulations for the construction industry?

Question 2

Which of the following best defines 'overhead' in a construction estimate?

Question 3

In building code terminology, what does 'means of egress' refer to?

Question 4

A performance bond on a construction project primarily protects the owner against which risk?

Question 5

A laborer earns a base wage of $20.00 per hour. The employer pays 7.65% for FICA taxes, 3% for workers' compensation insurance, and $1.50 per hour for fringe benefits. What is the fully-burdened labor cost per hour?

Question 6

A new commercial assembly occupancy (Group A-2) has a calculated occupant load of 400 persons and three exits. Using a door-width factor of 0.2 inches per person, what is the minimum aggregate clear width required across all exits combined?

Question 7

Which type of business entity provides its owners with personal liability protection while allowing profits and losses to pass directly to the owners' personal tax returns?

Question 8

A contractor is classified as an S Corporation for tax purposes. The owner-operator pays himself a reasonable salary of $80,000 per year and takes an additional $60,000 distribution from profits. Which of the following best describes the tax treatment of the $60,000 distribution?

Question 9

A building's 'occupancy classification' under the model building codes primarily determines which of the following?

Question 10

A contractor is building a two-story wood-frame structure. The architect's plans call for a load-bearing wall to be removed on the ground floor to create an open floor plan. Which is the MOST critical structural consideration?

Question 11

A project specifies 'Type V-B' wood-frame construction. What does the 'B' designation generally indicate regarding fire protection of structural members?

Question 12

Question 13

An employee's gross weekly wage is $1,000. The employer must match the employee's Social Security and Medicare (FICA) contributions. Assuming a combined FICA rate of 7.65%, how much does the employer owe in matching FICA taxes for that employee in one week?

Question 14

A general contractor hires a worker and classifies him as an independent contractor rather than an employee. Which of the following factors would MOST support a finding that the worker is actually an employee?

Question 15

Question 16

A contractor submits a bid with a 20% gross profit margin built on estimated direct costs of $50,000. After the project, actual costs came in $5,000 over estimate. What is the contractor's actual gross profit?

Question 17

A contractor uses a cost-plus-fixed-fee contract. The estimated project cost is $200,000 and the fixed fee is $20,000. Actual costs come in at $240,000 due to unforeseen conditions. What does the contractor receive in total compensation?

Question 18

Which business entity structure gives all owners (members) limited personal liability for business debts while still allowing pass-through taxation by default?

Question 19

In a dwelling unit, smoke alarms must be located in which of the following places at minimum, according to general residential code principles?

Question 20

Under general building code principles, a 'fire-resistance rating' for an assembly such as a wall or floor is expressed in hours. What does a two-hour fire-resistance rating mean?