A prefabricated products/equipment contractor performs installations of prefabricated products/equipment, including but not limited to the following:
A) Theater stage equipment, school classroom equipment, playground equipment, bleacher bench/seat component parts (no installation or renovation of any supporting or structural member); store fixtures, and display cases (either prefabricated or modular form); all forms and types of toilet/shower room partitions/accessories; and prefabricated closet systems.
B) Laboratory and medical equipment, dust collecting systems; factory built fireplaces and accessories (no masonry facing); major appliance installations and ventilating hoods in connection with existing fuel and energy lines which are installed by others.
C) Bus stop shelters, prefabricated phone booths; prefabricated sound proof environmental clean rooms; panelized refrigerated walk-in boxes (not to include the work of refrigeration contractor); all types of modular office, institutional or home improvement systems including, but not limited to all types of pre-finished and/or UL listed pre-wired wall panels.
Content of the Examination
The Law and Business Examination is divided into ten major sections. These sections are:
1. Company start-up procedures (10%)
Regulations
Planning
Business records
2. Human resources (6%)
Legal status
Qualifications
Employment recordkeeping
3. General business requirements (20%)
Accounting practices
Information management
Cash flow
4. Insurance and bonds (7%)
General business insurance
Workers’ Compensation insurance
Bonds
5. Pre-contract considerations (12%)
Estimating
Verification
6. Proposals and contracts (9%)
Writing
Content
Warranty
7. Contract compliance (9%)
Industry standards
Changes
Invoicing
Contract clauses
8. Public works (4%)
9. Safety (9%)
Training
Regulations
Hazardous materials
10. Legal (14%)
Lien law
Collections
Civil Code
Environment
Local
*Percentages are approximate*
Sample Questions
The following questions are typical of the kind of items that are on the examination. The correct answer is highlighted.
1. As part of the safety training process contractors’ supervisors are required to conduct “tool box” or “tailgate” safety meetings. How often must these meetings be held?
Daily
At least once every ten working days
At least once a month
At least once a quarter
2. Which of the following items is a job-related direct cost?
Trade Association membership dues
Contractor’s license renewal fee
Performance bonds
Office rent
3. What legal remedy can be pursued for nonpayment of funds owed to a contractor from a private job?
Notify the city building official.
File preliminary lien notice.
Perfect the claim of the lien.
File a Stop Notice.
*All questions are written and reviewed by licensed contractors who are actively working in the field*
