Download Maryland Contractor License Exam Questions and Answers 2025 and more Exams Construction in PDF only on Docsity!
answers 2025
Does home improvement include work done on an individual condominium unit?
- correct answer ✅Yes Does home improvement include work done on a swimming pool? - correct answer ✅Yes Does a home improvement contract HAVE to be in writing in order to preserve your lien rights? - correct answer ✅Yes A county or municipality in Maryland _____________ require a contractor to get authorization from an official in that city to be able to contract in that municipality. - correct answer ✅Cannot A county or municipality in Maryland _______________ regulate the character, performance and quality of home improvement. - correct answer ✅Can How many members are there in the Maryland Home Improvement Commission?
- correct answer ✅ 9 Of the 9 members on the Commission, how many are experienced in home improvement? - correct answer ✅ 4 What is the term of a member on the Commission? - correct answer ✅4 yrs. How long must a person be a citizen and member of Maryland before they can be appointed to the Commission? - correct answer ✅5 yrs.
answers 2025
It is illegal for a member of the Commission to receive any compensation from a person regulated by the Commission. - correct answer ✅True How often does the Commission hold meetings at a minimum? - correct answer ✅6 times a year The _______________ is a full time employee of the State. - correct answer ✅Executive Director People hired to investigate complaints about home improvement projects work under: - correct answer ✅the Director of the Commission If the Commission decides to sue a contractor because they believe that the contractor has or will cause harm to another person, they can sue for: - correct answer ✅-injunctive relief against the conduct, -an order for satisfactory completion of the project, -restitution. Can the Commission request financial records at any time? - correct answer ✅Yes The following are exempt from licensure requirements: - correct answer ✅- employees for labor services -employees for clerical work
answers 2025
When a sales person is no longer associated with a company they represented, the contractor must: - correct answer ✅give the commission written notice The Commission may suspend or revoke a license if the licensee: - correct answer ✅-lies on their application -practices fraud while being licensed -is convicted of a felony Licensed Home Improvement Contractors are also required to hold a construction license issued by the Clerk of the Court under Title 17. - correct answer ✅False Home owners have a right to bring a claim against the Guaranty Fund for situations of _________________________ concerning restoration, repair, replacement or completion that arise from unworkmanlike, inadequate, or incomplete home improvement. - correct answer ✅actual loss What is the maximum amount of money the Commission will award to any one claimant from the Guaranty Fund? - correct answer ✅$20,000. What is the maximum amount of money the Commission will pay out of the fund concerning the affairs of any one contractor? - correct answer ✅$100,000. Can a person bring a claim against the Guaranty Fund in a contract he has with the employer of his son? - correct answer ✅No
answers 2025
How long does a claimant have to bring a claim against the Guaranty Fund? - correct answer ✅3 years from discovery of the loss or damage How many days does a contractor have to respond in writing to the copy of a claim that was sent by the Commission? - correct answer ✅10 days If within ____________ after the Commission gives notice, a contractor on whose account a claim was paid does not reimburse the fund in full, the Commission may sue the contractor for reimbursement. - correct answer ✅60 days In addition to full reimbursement of the fund, a contractor is responsible to pay at least ___________ interest on the amount to reimburse. - correct answer ✅ 10 percent The state can record a lien against any real property owned by the contractor for a debt owed to the fund. - correct answer ✅True If the Commission pays a claim from the Fund based on the actions or omissions of a contractor, the Commission may suspend the contractor's license until full reimbursement of the Fund plus at least 10% interest. - correct answer ✅True A home improvement contract in compliance with the home improvement laws would include all of the following except: - correct answer ✅Names and license numbers of subcontractors A salesperson may not represent 2 contractors at the same time for the same project. - correct answer ✅True
answers 2025
Contractor, Jack Brown, makes a deal with customer, Ameal Cougar, to provide an estimate of $40,000 on a project where the actual costs are $30,000, allowing Ameal to pocket $10,000 after securing a mortgage at $40,000 and paying off Jack. This is: - correct answer ✅-fraud -an illegal act -a misdemeanor If a contractor's salesperson stops selling or working with the contractor for any reason, the contractor has a responsibility to the State to inform the Commission.
- correct answer ✅True All advertising has to provide the identifier "Maryland Home Improvement Commission License No ______________" or "MHIC#__________". - correct answer ✅True What is the maximum penalty the Commission may impose upon a contractor, licensed or unlicensed, per violation of these laws: - correct answer ✅$5, Advertising must be done in a way as to avoid misrepresenting the product, service or terms of sale so as not to deceive the customer. - correct answer ✅True An applicant must provide to the Commission, a credit report with their application. - correct answer ✅True How many days does a contractor have to respond to a receipt of a claim from the commission?
answers 2025
Close - correct answer ✅10 days Close If a contract was agreed to and signed by both parties for the purchase of replacement windows at a trade show, would this sale be subject to the laws of the Door-to-Door Sales Act? - correct answer ✅Yes If a consumer, by phone, contacted a roofing company and asked for a bid for their home, and the contract is signed at the home of the consumer without ever going to the office of the roofing company, is this sale subject to the laws of the Door-to-Door Sales Act? - correct answer ✅Yes Can a buyer waive his right to cancel a contract that falls into the category of "emergency situations?" - correct answer ✅Yes When a buyer initiates the contact and requests a contractor to visit the home to make a repair or perform maintenance, is this sale to repair or maintain this home subject to the Door-to-Door Sales Act? - correct answer ✅No If a customer made a purchase entirely over the phone or by mail, would this sales be subject to the Door-to-Door Sales Act? - correct answer ✅No Contractors cannot fail to provide a copy of the contract entered into between the contractor and this customer at the time this contract is executed. - correct answer ✅True
answers 2025
A seller, by law, has to, at the time of sale, orally explain to the customer of their right to cancel. - correct answer ✅True What are the possible repercussions of violating the Door-to-Door Sales Act laws?
- correct answer ✅-Repayment of any damages plus paying the customer's attorney's fees -Guilty of a misdemeanor -Can be fixed $1,000 fine or 1 year in jail or both Door-to-Door Sales Act applies to sales, lease or rental of consumer goods or services under single or multiple contracts with a purchase price of ____________ or more. Close - correct answer ✅$25. __________ are used to monitor and evaluate a contractor's costs during the course of a construction project. - correct answer ✅Cost codes Is profit considered a cost? And should it be factored into your cost codes? - correct answer ✅No Which of the following are benefits of using estimating software? - correct answer ✅-professional looking reports -alleviate many errors -reference databases
answers 2025
Profit is the amount of money left over after a project is 100 percent complete, and referred to as net, or clear profit. - correct answer ✅True Items not specified in the project plans, such as plumbing fixtures, electrical fixtures, flooring.... can be handled by negotiating a budget for these items not yet decided upon. These additional monies set aside for the owner to go shopping with are called? - correct answer ✅allowances The cost of having employees includes their hourly wage, and other expenses not included in their wage such as, matching Social Security and Medicare contributions and unemployment and workers compensation expenses. These additional costs, over and above wages is called _________________. - correct answer ✅labor burden Requiring bidders to include qualifications in a bid helps to ensure _________. - correct answer ✅-competence -capacity -experience An excavation project requires the removal and hauling of an undetermined amount of fill material. Since the amount of work is not defined, the contractor quotes a certain amount per cubic yard on the bid form. This amount incudes equipment rental and maintenance costs, labor costs, fixed overhead costs and profit. This is an example of what type of estimate? - correct answer ✅unit price estimate
answers 2025
A complete list of all of the materials and items of work that would be required to complete a project are __________________. - correct answer ✅quantity surveys (take off) It is always wise to choose the subcontractor who provides the lowest bid. - correct answer ✅false What would be the best source to use when estimating job site overhead? - correct answer ✅Historical job site overhead costs records Recognizing that delays are inevitable, the schedule should plan for this by considering ____________________. - correct answer ✅Contingency time Adding an amount of money to cover unexpected costs are ______________________. - correct answer ✅Contingency costs ______________________are reasonable estimates of funds set aside for a particular item in a project (such as lighting fixtures). The contractor is not held to that price. - correct answer ✅allowances The basic hourly wage incurred while an employee is being productive in the building process is known as ______________________________________. - correct answer ✅Direct labor cost
answers 2025
An advantage to renting equipment can be __________. - correct answer ✅-short term need -distant job location -no maintenance costs This is a form of construction estimating in which a fixed price is given for the entire project. - correct answer ✅lump sum method The importance of pre-qualified bids is to ensure ___________. - correct answer ✅-competence -capacity -experience Quality of construction, materials and work methods should be addressed in the specifications. Companies that are bidding can take these expectations into consideration when they are doing their estimates. - correct answer ✅True Which of the following is not considered annual company overhead? - correct answer ✅equipment rental Lack of ________ definition could lead to a skewed bid and could result in the contractor actually losing money on a project. Close - correct answer ✅-design -work scope
answers 2025
How many employees must an employer have before they are required to purchase Workers Compensation Insurance? - correct answer ✅ 1 What benefit is provided to an injured employee if needed? - correct answer ✅- Wage replacement and payment for loss or permanent damage to body parts -Rehabilitation costs -Current and future medical costs What is the penalty for not providing Workers Compensation Insurance to your employee(s)? - correct answer ✅Up to $5000 fine, imprisoned for one year, or both What governmental department in Maryland administers the Laws for Unemployment? - correct answer ✅Department of Labor, Licensing and Regulation After how many days of conducting business with an employee is an employer in violation of the law if they have not yet registered for Unemployment Insurance? - correct answer ✅20 days Which of the following rates is for unemployment insurance that is the average rate paid by all employers over the last five years? - correct answer ✅New Account Rate
answers 2025
Can an employer legally pay an hourly wage earner only once a month? - correct answer ✅No Can an employer, as a form of disciplinary action, legally doc an employee's earned wage? - correct answer ✅No After working more than 40 hours in a seven day week, employees in the building trades would be paid 1 1/2 times their usually hourly pay for those hours over 40.
- correct answer ✅True In the absence of an express contract, employees may be hired or fired for almost any reason - whether fair or not - or for no reason at all. - correct answer ✅True Can an employer legally require an employee to be tested for the illegal use of drugs and alcohol? - correct answer ✅Yes What is the minimum age at which a minor can be gainfully employed? - correct answer ✅ 14 Minors between 14 and 17, in order to be gainfully employed, must have a work permit. Close - correct answer ✅True An owner must be notified of the possibility of a lien being perfected against their property within ____________ days after doing the work or furnishing the materials. - correct answer ✅120 days
answers 2025
An owner receives notice of an order to attach a lien against his property. How long does the owner have to show cause as to why a lien shouldn't be attached? - correct answer ✅15 days From the date that a contractor or other entitled person petitions to establish a lien at the circuit court, how long does the contractor have to enforce the lien? - correct answer ✅1 year Anyone seeking to claim a lien must file a petition in the circuit court within __________ after the work has been finished or materials furnished. - correct answer ✅180 days At the time of project closeout the contractor must provide to the owner a signed release of lien from each material provider and each subcontractor involved in the project. Close - correct answer ✅True Who is responsible for Maryland's Occupational Safety and Health Plan (MOSH)? - correct answer ✅The Division of Labor and Industry MOSH suggests that all effective safety and health programs have 5 elements: 1) Management commitment and employee involvement; 2) Work-site inspection and analysis; 3) Hazard prevention and control; 4) Safety and health training; and - correct answer ✅long term commitment by employer This form is a log of work related injuries and illnesses: - correct answer ✅OSHA 300
answers 2025
Maryland requires that employers obtain ____________________ for each hazardous chemical material that is kept on hand, produced or imported. - correct answer ✅Safety Data Sheets The law requires employers to obtain, maintain and submit certain information about the hazardous substances in their work places. This applies to all employers.
- correct answer ✅True Are MOSH inspectors permitted to conduct an inspection without advanced warning to the employer? - correct answer ✅Yes If an injury only requires first aid, would that incident need to be recorded? - correct answer ✅No The purpose of a/an _________ is to provide detailed information on each hazardous chemical at the job site, informing employees of potential dangers. - correct answer ✅SDS (Safety Data Sheets) Which is NOT an employer's right regarding an OSHA inspections? - correct answer ✅Which is NOT an employer's right regarding an OSHA inspections? What information about hazardous chemicals is NOT found on an SDS? - correct answer ✅Effective and ineffective protective measures.
