Contractor's Law & Business for the California Contractor's Exam By: Peerless Insitute

Published by: BNI 402 Pages, 8-1/2 x 11, Shipping Weight: 2.06 lbs.

RETAIL PRICE $99.95 DESCRIPTION From Peerless Insitute... This gigantic book is filled with everything you need to pass the California Contractor Law & Business exam: Lien law, workers' comp, CAL-OSHA requirements, California unemployment insurance act, state sales and use tax, business management, and basic bookkeeping and accounting practices. There are even 1,000 questions and answers included -- just like the actual state tests, to make sure you pass with high marks.

TABLE OF CONTENTS

CONTRACTORS' LICENSE LAW
TABLE OF CONTENTS

FOREWORD, 3

SECTION 1 - BUSINESS PRACTICES, 14% PERCENT OF TEST, 7
SETTING UP AN OFFICE, 9
BUSINESS MANAGEMENT AND BASIC BOOKKEEPING, 14
PRINCIPLES OF MANAGEMENT, 16
ESTABLISHING YOUR BUSINESS, 17
ACCOUNTING CONTROL, 19
FINANCIAL MANAGEMENT, 25
CONSTRUCTION BOOKKEEPING, 30
JOB COSTING, 33
FINANCIAL STATEMENTS, 37
ACCOUNTING AND BUSINESS GLOSSARY, 42
FUNDAMENTALS OF BOOKKEEPING AND BUSINESS MANAGEMENT, 46
QUESTIONS ON BOOKKEEPING BUSINESS MANAGEMENT, 51
QUESTIONS ON RETENTION, 59
QUESTIONS ON BALANCE SHEET, 61
QUESTIONS ON CREDIT, 63

SECTION 2 - BID PREPARATION, 13%, 65
COST ESTIMATING FOR BIDDING FOR SMALL CONTRACTORS, 67
ESTIMATING GLOSSARY, 72
ESTIMATING, BUDGETING AND COST CONTROL (LARGE CONTRACTS), 74
QUESTIONS ON ESTIMATING, 79

SECTION 3 - CONTRACTS, 15%, 87
RESPONSIBILITIES OF A CONTRACTOR, 89
QUESTIONS ON CONTRACTS, 105

SECTION 4 - CONTRACT OPERATIONS, 19%, 107
PRE-CONSTRUCTION MEETING, 109
CONSTRUCTION MANAGER, 113

SECTION 5 - SAFETY, 8%, 117
CALIFORNIA OCCUPATIONAL SAFETY AND HEALTH PROGRAM, 120
SAFETY QUESTIONS, 159
ASBESTOS, 175
QUESTIONS ON ASBESTOS, 177
SAFETY PROGRAM,179

SECTION 6 - LABOR, 13%, 197
WORKERS' COMPENSATION INSURANCE LAWS, 199
QUESTIONS ON WORKERS' COMPENSATION, 203
LABOR CODE, 208
QUESTIONS ON THE LABOR CODE, 213
CALIFORNIA UNEMPLOYMENT INSURANCE ACT, 217
QUESTIONS ON CALIFORNIA UNEMPLOYMENT INSURANCE ACT, 219
FEDERAL EMPLOYMENT TAXES, 220
QUESTIONS ON FEDERAL EMPLOYMENT TAXES, 223
STATE SALES AND USE TAX, 225
QUESTIONS ON STATE SALES AND USE TAX, 227

SECTION 7 - LEGAL, 13%, 229
LEGAL CONSIDERATIONS AND REMEDIES, 231
GLOSSARY OF TERMS, 232
LIEN LAWS AND STOP NOTICES, 234
QUESTIONS ON MECHANICS LIEN, 251
QUESTIONS ON PRELIMINARY NOTICE, 253
QUESTIONS ON STOP NOTICE, 255
TERMS THAT YOU SHOULD KNOW, 256
EXPERT ADVISORS, 259
ARBITRATION AND BACKGROUND, 259
APPOINTMENT OF ARBITRATOR, 261
QUESTIONS ON LEGAL, 265

SECTION 8 - CALIFORNIA ACCESS REQUIREMENTS, 279
CALIFORNIA ACCESS REQUIREMENTS FOR THE HANDICAPPED, 281
QUESTIONS ON HANDICAPPED ACCESS, 283

SECTION 9 - CALIFORNIA CONTRACTORS' LAW, 285
QUESTIONS ON CALIFORNIA CONTRACTORS' LAW, 309

SECTION 10 - PRACTICE TEST #1, 331
SECTION 11 - PRACTICE TEST #2, 345
SECTION 12 - PRACTICE TEST #3, 359
SECTION 13 - PRACTICE TEST #4, 373

APPENDIX A - 387
APPENDIX B - 390
APPENDIX C - 391
APPENDIX D - 392
APPENDIX E - 393
APPENDIX F - 394
APPENDIX G - 395

INDEX - 397

INTRODUCTION

CONTRACTORS' LICENSE LAW
FOREWORD

Peerless Institute Home Study Courses have been helping people pass the California State Contractors' Exam since 1953. We have been doing this longer than anyone else in California: providing you with high quality, relevant and current/updated material from which you can study and pass the State Contractors' examination the first time.

Remember it is a STATE examination that you are preparing for. The regulations, codes, etc. in the examination are STATE regulations, codes, etc. Your answers to exam questions will refer to STATE requirements, not local requirements. Your local government may make these regulations and codes more strict, but they may not make them less demanding than the State codes.

The State Contractors' License Board has more than one examination for those applying for a contractor's license. The exam is given to you on a computer and the board can therefore choose any combination of questions that are contained in a computer bank to make up your exam. The material contained in this book attempts to guide you through the type of material found in any of these. If you fail the examination in the first try for your license, you mayor may not be given the same test on your second try. If you truly learn the material in this book, you should be able to answer any question in the State exam ... no matter how that question may be worded ... or in what format it may be presented.

The Contractors' License Board has structured the Law & Business Management examination to reflect a new subject emphasis.

It uses solely multiple-choice questions preceded by paragraphs of information; i.e., you will be given a Balance Sheet and a Profit and Loss (Income and Expense) Statement. You will then have to read paragraphs of information that refer to either the Balance Sheet or the P & L and then answer several multiple choice questions after each paragraph.

The exam places great emphasis on Business Management Accounting, Workers' Compensation, Cal/OSHA and FICA (Social Security). It still contains questions about Contractors' License Law, Mechanics' Lien Law, Industrial Relations, etc.

1. Find a quiet place at a desk or table to study (no disturbance).
2. Form a schedule of approximately 2 hours each session and stick with it (3 or 4 times a week).
3. Go through the text of each section carefully. Some of the questions that follow may not necessarily be covered by the text. You learn from both the text and questions.
4. Then, when you go through the questions, it is best to follow this procedure.

A. FIRST, read the answer at the bottom of the page.
B. NOW read the question.
C. DO NOT read any of the OTHER answers.
D. Go through approximately 100 to 150 questions in this manner. Then take the test without looking at the answers.
E. Grade yourself and then review the questions that you missed. You should be achieving 90 percent.

5. If you follow this approach you will end up with only one image in your head - the correct one.
6. Go through the complete book in this manner at least once and allow study time to repeat just before taking the exam.
7. If you tire and your mind isn't on what you are doing, get away from it for a short while. Remember, the fewer distractions, the easier it is for you to concentrate and learn.

Following the preceding suggestions will enable you to take and pass the State Exam. The Law exam contains over one hundred (100) questions and you are given two and one half (2-1/2) hours in which to complete them. So speed and knowledge are now of the utmost importance.

Spend about one full minute on each question. There is plenty of time to complete the exam. However, don't spend a disproportionate amount of time on anyone question. lf you don't know the answer to a question, leave it and go on to the nex1. Come back to it later and if you still do not know the answer, then choose that which seems most right to you. Don't leave any blanks.

The Peerless Institute Exam Study Guide has been prepared in order to enable you to have the most current information available and study for the latest exam on the tests being given by the California State License Board. However, the writers, editors and individuals who have contributed to this book are not responsible for any errors, omissions, or any other deficiencies that may result from use of this book. The California State License Board may once in every two (2) or three (3) years suddenly change the examination without notice. If this should happen to you, please notify Peerless to receive possible updates.

CONTRACTORS' CODE OF ETHICS

The Contractors' License Board does not have the necessary power to enforce a Code of Ethics. However, in the best interest of the entire construction industry, the Board urges the maintaining of a high standard of ethics in the business. Following are a few of the many ethical practices for all contractors. Besides the following, the examinee can probably think of numerous ethical rules of his/her own. A good policy to follow in the contracting business is to do what the contractor thinks is fair and just and will not bring harm to anyone concerned.

The bid of a Subcontractor to a General Contractor should be kept confidential by the General Contractor.

A General Contractor should not solicit further bids from Subcontractors after having received and opened bids.

A Subcontractor should not lower his bid after it has been submitted to the General Contractor if the General Contractor has received other lower bids for the same work.

Bidders (General and Sub) should not accept or seek information on competitor's bids, but should base their bids solely upon their own calculations.

A contractor should not make false and misleading adverse statements concerning his competitors. He may urge the prospective client to make a thorough investigation of competitors and make fair comparisons to the quality of his/her own work. He/she should not unfairly prejudice the customer, before a comparative inspection has been made.

No contractor should take advantage of an obvious error in plans and specifications or other documents that will react unfairly to his/her advantage but to the detriment of another.

Each business transaction should be based upon that which is unquestionably morally right rather than that which may be legally enforceable but is not ethical.

Bidding for work without properly figuring cost, overhead and a reasonable profit tends to bankrupt the entire industry, as well as the contractor, and cannot be approved. Bidding for work below cost and a fair profit cannot be condoned under any circumstances.

BACK COVER

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