Georgia General Contractor Exam — All Questions

A construction business is organized as a corporation. If the corporation is sued and cannot pay a judgment, what is generally at risk?

• a.The personal homes and bank accounts of every shareholder
• b.The personal assets of the highest-paid officer only
• c.The assets owned by the corporation itself, not the shareholders' personal assets✓
• d.Nothing, because corporations cannot be sued

A corporation is a separate legal entity from its owners (shareholders). This separation creates limited liability: creditors and judgments generally reach only the assets the corporation owns, and shareholders risk losing only what they invested — not their personal homes or savings. That protection can be lost only in unusual cases such as fraud or 'piercing the corporate veil.'

In a general partnership, how are the general partners liable for the debts of the business?

• a.Only up to the amount each partner originally invested
• b.Personally and jointly liable for all partnership debts✓
• c.Not liable at all, because the partnership pays its own debts
• d.Liable only for debts they personally signed for

A general partnership does not shield its owners. Each general partner has unlimited personal liability and is jointly liable for the partnership's debts and obligations — a creditor can pursue any partner's personal assets. This unlimited exposure is a key reason many contractors instead form an LLC or corporation, which provide limited liability.

Which statement best describes a limited liability company (LLC) for a contracting business?

• a.It gives owners limited liability while normally allowing profits to pass through to owners' personal tax returns✓
• b.It requires the business to pay corporate income tax and forbids pass-through taxation
• c.It makes every member personally liable for all company debts
• d.It can be owned by only one person and never by a group

An LLC combines the liability protection of a corporation with the tax flexibility of a partnership. Members are generally shielded from personal liability for business debts, and by default the LLC's profits and losses 'pass through' to the members' individual tax returns, avoiding the double taxation of a standard C corporation. An LLC may have one member or many.

A contractor's total direct cost for a job is $18,000. The contractor adds a 15% markup to cover overhead and profit. What is the bid price?

• a.$18,150
• b.$18,270
• c.$20,700✓
• d.$21,150

Markup is a percentage added on top of cost. Multiply the cost by (1 + markup): $18,000 x 1.15 = $20,700. The markup dollars are $18,000 x 0.15 = $2,700, which is added to the $18,000 cost to reach the bid price. Markup covers both company overhead and profit.

A job costs the contractor $8,000. The contractor wants a 20% gross profit MARGIN (profit as a percentage of the selling price). What must the selling price be?

• a.$9,600
• b.$10,000✓
• c.$9,800
• d.$10,400

Margin is measured against the selling price, not the cost, so you cannot simply add 20% to cost. Price = cost / (1 - margin) = $8,000 / (1 - 0.20) = $8,000 / 0.80 = $10,000. Check: profit is $2,000, and $2,000 / $10,000 = 20% margin. Adding 20% to cost ($9,600) would only give a 16.7% margin — a common and costly estimating error.

How many cubic yards of concrete are needed for a slab 27 ft long, 30 ft wide, and 4 inches thick?

• a.3.3 cubic yards
• b.6.7 cubic yards
• c.8.5 cubic yards
• d.10 cubic yards✓

First convert thickness to feet: 4 in / 12 = 0.3333 ft. Volume in cubic feet = 27 x 30 x 0.3333 = 270 cubic feet. Convert to cubic yards by dividing by 27 (there are 27 cubic feet in a cubic yard): 270 / 27 = 10 cubic yards. Getting units consistent — feet for all three dimensions — is the key step.

On a project where the exact quantities of excavation and fill are not yet known, which bidding method best protects both owner and contractor from large quantity surprises?

• a.A unit-price contract, paying a set price per unit for the actual quantity installed✓
• b.A lump-sum contract with no measurement of quantities
• c.A verbal handshake agreement
• d.A cost-plus contract with no cost records kept

Unit pricing sets a fixed price per unit (for example, per cubic yard of excavation), and the contractor is paid for the actual measured quantity. This fairly handles uncertain quantities: the owner pays only for work performed, and the contractor is protected if quantities grow. A lump sum forces the contractor to guess and gamble on the quantity, which is risky when the amount is genuinely unknown.

Which set of elements is generally required for a contract to be legally valid and enforceable?

• a.A notary stamp, a witness, and a deposit
• b.A blueprint, a permit, and a bond
• c.Offer, acceptance, consideration, legal capacity, and a lawful purpose✓
• d.A handshake, a logo, and an invoice

A valid contract requires an offer, acceptance of that offer (mutual assent), consideration (something of value exchanged by each side), parties with legal capacity to contract, and a lawful purpose. If any element is missing — for example, no consideration or an illegal objective — the agreement may be void or unenforceable. Notaries, permits, and bonds are sometimes useful but are not the core elements of contract formation.

A construction contract states that the contractor will pay the owner $500 for each day the project finishes late, agreed in advance as a reasonable estimate of the owner's loss. This clause is best described as:

• a.A performance bond
• b.A liquidated damages clause✓
• c.A mechanic's lien
• d.A punitive penalty that courts always strike down

Liquidated damages are a dollar amount the parties agree to IN ADVANCE as compensation for a breach (commonly late completion) when the actual loss would be hard to calculate. To be enforceable the amount must be a reasonable pre-estimate of the harm, not a punishment. A performance bond is a surety guarantee, and a mechanic's lien secures payment for labor and materials — different tools entirely.

The owner asks the contractor to add a bathroom that was not in the original signed contract. What is the correct way to authorize and price this added work?

• a.A written change order signed by both parties before the work proceeds✓
• b.A verbal 'go ahead' with no documentation
• c.An adjustment made quietly on the final invoice
• d.A new lawsuit filed against the owner

A change order is a written amendment that documents a modification to the scope, price, or schedule and is signed by both parties. Handling changes in writing before performing the work protects the contractor's right to be paid for the extra work and prevents disputes about what was authorized. Relying on verbal approvals is a leading cause of payment disputes.

Under the Statute of Frauds, which of the following is generally required to be in writing to be enforceable?

• a.A one-hour verbal agreement to sweep a job site
• b.A casual promise to lend a friend a hammer
• c.An agreement to buy lunch for the crew
• d.A contract for the sale of land or an interest in real property✓

The Statute of Frauds requires certain categories of contracts to be in writing and signed to be enforceable — most notably contracts for the sale of land or interests in real property, and agreements that cannot be performed within one year. This is why construction and real-property agreements are documented in writing. Minor, short, everyday arrangements are not covered.

In a Critical Path Method (CPM) schedule, the 'critical path' is:

• a.The path with the most expensive activities
• b.The longest sequence of dependent activities, which determines the shortest possible project duration✓
• c.The path that uses the newest equipment
• d.Any path that has the most float

The critical path is the longest chain of dependent activities through the network. Because it is the longest path, it sets the minimum time in which the whole project can finish. Activities on the critical path have zero float — delaying any one of them delays the entire project. It is about time and dependency, not cost or equipment.

'Float' (also called slack) for a scheduled activity means:

• a.The amount of time an activity can be delayed without delaying the project's completion date✓
• b.The amount of money left in the activity's budget
• c.The number of extra workers assigned to the activity
• d.The percentage of the activity that is already complete

Float (slack) is the scheduling flexibility of an activity — how long it can slip before it pushes out the project finish date. Activities on the critical path have zero float. Understanding float lets a manager shift non-critical work and reallocate crews without harming the overall completion date. It is a measure of time flexibility, not money or manpower.

During construction the contractor finds the plans and specifications conflict and needs clarification from the architect. The standard document used to formally ask this question is a:

• a.Certificate of occupancy
• b.Lien waiver
• c.Request for Information (RFI)✓
• d.Notice to proceed

A Request for Information (RFI) is the formal, written channel a contractor uses to ask the design team to clarify or resolve gaps, conflicts, or ambiguities in the drawings and specifications. Documenting questions and answers through RFIs creates a paper trail, avoids guesswork, and supports later claims if the answer changes the cost or schedule.

What is the primary purpose of a Gantt (bar) chart on a construction project?

• a.To calculate payroll taxes for each employee
• b.To show project activities as bars along a timeline so start dates, durations, and overlaps are easy to see✓
• c.To record the exact chemical composition of the concrete
• d.To replace the need for any building permits

A Gantt chart displays each task as a horizontal bar positioned and sized along a time axis, making it easy to communicate when activities start and finish, how long they take, and where they overlap. It is a scheduling and communication tool. It does not perform payroll, material testing, or permitting functions.

A contracting company has current assets of $240,000 and current liabilities of $120,000. What is its current ratio?

• a.0.5 to 1
• b.1.2 to 1
• c.2.0 to 1✓
• d.12 to 1

Current ratio = current assets / current liabilities = $240,000 / $120,000 = 2.0. A ratio of 2.0 means the company has $2 of short-term assets for every $1 of short-term debt, which generally indicates healthy short-term liquidity. Sureties and lenders watch this ratio closely; a ratio below 1.0 signals the company may struggle to pay near-term obligations.

Working capital is calculated as:

• a.Current assets minus current liabilities✓
• b.Total revenue minus total expenses for the year
• c.The value of all equipment the company owns
• d.The owner's original cash investment

Working capital = current assets - current liabilities. It measures the short-term funds available to run daily operations, buy materials, meet payroll, and absorb delays before receivables come in. Positive working capital is essential in construction because contractors often pay costs long before the owner pays them. It is different from annual net profit and from equipment value.

On a project, the owner withholds 10% from each progress payment until the work is satisfactorily completed. This withheld amount is called:

• a.A liquidated damage
• b.Retainage (retention)✓
• c.A change order
• d.Overhead

Retainage (retention) is a portion of each progress payment the owner holds back — commonly 5% to 10% — and releases after the contractor satisfactorily completes the work and addresses punch-list items. It gives the owner leverage to ensure completion, but it also strains the contractor's cash flow, so contractors must plan for it and pass appropriate retainage terms down to subcontractors.

Why do contractors use job costing (tracking costs to each specific project)?

• a.Because the law forbids one combined company bank account
• b.To avoid ever having to file a tax return
• c.Only to make the paperwork look more professional
• d.To compare actual costs against the estimate for each job and see which jobs are profitable✓

Job costing assigns labor, materials, equipment, and subcontractor costs to each individual project. This lets the contractor compare actual costs to the original estimate in real time, catch overruns early, price future work more accurately, and identify which types of jobs actually make money. Without job costing, a company can be busy and still lose money without knowing which project caused the loss.

Under OSHA construction standards, at what height above a lower level does fall protection generally become required for workers on a construction site?

• a.2 feet
• b.4 feet
• c.6 feet✓
• d.20 feet

OSHA's construction fall-protection rule (29 CFR 1926.501) generally requires protection — such as guardrails, safety nets, or personal fall-arrest systems — when a worker is exposed to a fall of 6 feet or more to a lower level. (Note the general-industry trigger is 4 feet, but on construction sites the 6-foot rule applies.) Falls are consistently a leading cause of construction fatalities, which is why this threshold is heavily tested and enforced.

According to the hierarchy of controls, which method of protecting workers from a hazard is MOST effective and should be considered first?

• a.Eliminating the hazard entirely✓
• b.Providing personal protective equipment (PPE)
• c.Posting a warning sign
• d.Writing the hazard into a safety manual

The hierarchy of controls ranks protections from most to least effective: elimination, substitution, engineering controls, administrative controls, and finally PPE. Removing the hazard entirely is best because it does not depend on worker behavior or equipment holding up. PPE is the last line of defense — it only reduces exposure and relies on correct, consistent use, so it is the least reliable control on its own.

OSHA requires that a trench or excavation be protected by sloping, shoring, or a protective (trench) box once it reaches what depth?

• a.3 feet
• b.5 feet✓
• c.10 feet
• d.15 feet

Under OSHA's excavation standard (29 CFR 1926.652), a protective system — sloping/benching, shoring, or a trench box (shield) — is generally required for trenches 5 feet deep or greater (unless the excavation is entirely in stable rock). A registered professional engineer must design protection for trenches deeper than 20 feet. Cave-ins are frequently fatal, so a competent person must inspect excavations daily.

Who is responsible for providing a safe workplace and requiring the use of appropriate personal protective equipment on a job site?

• a.Only the individual workers themselves
• b.Only the equipment manufacturer
• c.Only OSHA inspectors
• d.The employer✓

Under the OSH Act's General Duty Clause and OSHA standards, the employer has the primary legal duty to furnish a workplace free from recognized hazards, to assess the job for hazards, and to provide and require appropriate PPE (often at no cost to the employee). Workers must follow safety rules and use provided equipment, but the core obligation to create a safe workplace rests with the employer.

An employee is injured while framing a house during work hours. Which system is designed to cover the employee's medical bills and lost wages regardless of who was at fault?

• a.The employee's personal auto insurance
• b.Workers' compensation insurance✓
• c.A performance bond
• d.The building permit fee

Workers' compensation is a no-fault system: an employee injured on the job receives medical care and partial wage replacement without having to prove the employer was negligent, and in exchange the employer is generally protected from most injury lawsuits. Carrying required workers' compensation coverage is a fundamental legal obligation for contractors with employees. A bond and a permit serve entirely different purposes.

Under the federal Fair Labor Standards Act (FLSA), a covered nonexempt employee must generally be paid overtime for hours worked beyond:

• a.8 hours in a single day, in every state
• b.35 hours in a week
• c.40 hours in a workweek, at one-and-one-half times the regular rate✓
• d.60 hours in a week, at the regular rate

The FLSA sets the federal overtime rule: covered nonexempt employees must receive at least 1.5 times their regular rate for hours worked over 40 in a workweek. The federal standard is weekly, not daily (some states add their own daily-overtime rules, but the nationwide FLSA baseline is the 40-hour workweek). Misclassifying workers to dodge overtime is a common and costly violation.

Which factor most strongly suggests a worker should be classified as an EMPLOYEE rather than an independent contractor?

• a.The business controls how, when, and where the work is done and provides the tools✓
• b.The worker runs an independent business serving many clients and sets their own methods
• c.The worker supplies their own tools and can profit or lose based on their own decisions
• d.The worker is free to accept or reject jobs from many different companies

The central test for classification is the degree of control and independence. When the business directs how, when, and where the work is performed and supplies the tools, the worker looks like an employee. Independent contractors typically control their own methods, invest in their own tools, serve multiple clients, and bear the risk of profit or loss. Misclassifying employees as contractors to avoid taxes, overtime, and workers' comp is a serious and heavily penalized violation.

What is the purpose of Form I-9 that a contractor completes for each new hire?

• a.To calculate the employee's overtime rate
• b.To register the employee with the local building department
• c.To order the employee's personal protective equipment
• d.To verify the employee's identity and legal authorization to work in the United States✓

The federal Form I-9 is used to verify each new employee's identity and their authorization to work in the United States, as required by immigration law. Employers must complete and retain an I-9 for every employee and review acceptable documents. It is separate from tax forms (like the W-4) and from any safety, permitting, or payroll-rate functions.

What is the primary purpose of a building permit and the inspections that go with it?

• a.To generate extra tax revenue with no benefit to the public
• b.To confirm that the proposed work meets the applicable building codes for safety and to allow official inspection of the work✓
• c.To guarantee the contractor will make a profit on the job
• d.To replace the need for a written contract with the owner

A building permit is the jurisdiction's authorization to perform construction that meets the adopted building codes, and the required inspections verify that the work actually complies at key stages. The core purpose is protecting public health and safety — sound structures, safe electrical and plumbing systems, and proper egress. Permits are not a revenue trick, a profit guarantee, or a substitute for the owner-contractor contract.

Before a newly constructed building may be legally occupied, the building department typically must issue a:

• a.Certificate of occupancy✓
• b.Lien waiver
• c.Bid bond
• d.Change order

A certificate of occupancy (CO) is the document the building official issues after final inspections confirm the building complies with the code and is safe to occupy for its intended use. Occupying a building without a required CO can lead to fines and forced vacancy. A lien waiver relates to payment, a bid bond to the bidding process, and a change order to scope changes — none of them authorize occupancy.

A contractor must set a new house a minimum distance from the property line. Which type of rule most directly governs this required setback?

• a.The electrical code
• b.OSHA fall-protection standards
• c.Local zoning ordinances✓
• d.The workers' compensation statute

Setbacks — the minimum required distances between a structure and the property lines — are established by local zoning ordinances, which regulate how land may be used and where buildings may be placed. Building codes govern how a structure is built (its safety and construction), while zoning governs where and what may be built. Distinguishing zoning (land use) from building codes (construction standards) is a fundamental concept for contractors.

Which state body issues and regulates general and residential contractor licenses in Georgia?

• a.The Georgia Department of Community Affairs
• b.The State Licensing Board for Residential and General Contractors, under the Secretary of State✓
• c.Each county's building department, with no statewide board
• d.The Georgia Department of Labor

Georgia licenses contractors through the State Licensing Board for Residential and General Contractors, which operates under the Secretary of State. Its authority comes from O.C.G.A. Title 43, Chapter 41, which sets qualification, examination, and discipline standards statewide.O.C.G.A. Title 43, Ch. 41

To qualify for the unlimited-tier General Contractor license in Georgia, an applicant's company must demonstrate a minimum net worth of:

• a.$25,000
• b.$75,000
• c.$150,000✓
• d.$500,000

The unlimited General Contractor classification requires a minimum net worth of $150,000. The lower General Contractor Limited Tier requires only $25,000 in net worth but caps the size of any single contract.O.C.G.A. Title 43, Ch. 41; Board Rules Ch. 553

A contractor holds a Georgia General Contractor Limited Tier license (net worth $25,000). What is the key restriction on this classification?

• a.No single contract may exceed $1,000,000✓
• b.The contractor may only work on state-owned buildings
• c.The contractor may not hire any subcontractors
• d.All work must be residential

The General Contractor Limited Tier is qualified on a $25,000 net worth but is capped so that no single contract may exceed $1,000,000. A contractor needing to take larger single contracts must qualify for the unlimited General Contractor tier ($150,000 net worth).O.C.G.A. Title 43, Ch. 41; Board Rules Ch. 553

The Georgia board sets minimum general liability insurance by classification. Which pairing is correct?

• a.Every classification requires the same $100,000 policy
• b.Residential-Basic requires $500,000; General Contractor requires $300,000
• c.No classification requires general liability insurance
• d.Residential-Basic requires $300,000, while the General Contractor classification requires $500,000✓

General liability minimums scale with scope: the Residential-Basic classification requires $300,000 of coverage, while the broader Residential-Light-Commercial and General Contractor classifications require $500,000. Higher-scope work carries a higher minimum.Board Rules Ch. 553 (general liability insurance)

What is the minimum age to qualify for a Georgia contractor license?

• a.18 years old
• b.21 years old✓
• c.25 years old
• d.There is no minimum age

An applicant for a Georgia contractor license must be at least 21 years of age, in addition to meeting the experience and financial-responsibility standards for the classification sought.O.C.G.A. Title 43, Ch. 41; Board Rules Ch. 553

A candidate is pursuing Georgia's unlimited General Contractor license. Which examination satisfies the technical/trade portion for that classification?

• a.The Georgia Residential-Basic trade exam
• b.No trade exam is required for the General Contractor tier
• c.The NASCLA Accredited Commercial General Building Contractor examination✓
• d.The Florida Certified General Contractor examination

For Georgia's General Contractor and GC Limited Tier classifications, the trade/technical portion is satisfied by the NASCLA Accredited Commercial General Building Contractor examination. The separate Georgia Business and Law exam is still required.GA board policy; NASCLA Accredited Examination

A candidate fails a Georgia contractor licensing examination. What does board policy require before another attempt?

• a.The candidate may retake it after a 30-day wait; a one-year wait applies only after failing to pass within three sittings✓
• b.The candidate is permanently barred from that classification
• c.The candidate must wait one full year after a single failure
• d.The candidate must switch to a residential classification

A failed Georgia exam may be retaken after a 30-day waiting period. A one-year wait is triggered only after a candidate fails to pass within three sittings — not after a single or second failure — running one year from the application/eligibility date.GA State Licensing Board — examination retake policy

Which statement best distinguishes Georgia's Residential-Basic classification from the General Contractor classification?

• a.Residential-Basic may build high-rise commercial towers; General Contractor may not
• b.They are identical in scope and differ only in fee
• c.Residential-Basic is a statewide license and General Contractor is county-limited
• d.Residential-Basic is limited to detached one-family and two-family dwellings and townhouses, while the General Contractor tier has essentially unlimited building scope✓

The Residential-Basic classification is limited to detached one-family and two-family homes and townhouses. The General Contractor classification carries the broadest, essentially unlimited scope, which is why it requires the higher $150,000 net worth and the NASCLA trade exam.O.C.G.A. Title 43, Ch. 41 (classifications)

A GC Limited Tier holder is offered a single lump-sum contract worth $1,400,000. What must the contractor do to take the job legally?

• a.Nothing; the Limited Tier has no contract-size cap
• b.Qualify for and hold the unlimited General Contractor classification, because the single contract exceeds $1,000,000✓
• c.Split the paperwork into two invoices to stay under the cap
• d.Obtain a county competency card for the project location

The GC Limited Tier caps any single contract at $1,000,000. A $1,400,000 single contract exceeds that limit, so the contractor must hold the unlimited General Contractor classification (net worth $150,000) to perform it lawfully. Splitting invoices to evade the cap is a violation.Board Rules Ch. 553 (GC Limited Tier)

An unlicensed person performs work that required a Georgia contractor license and then sues the owner to collect the unpaid balance. Under O.C.G.A. §43-41-17, what is the result?

• a.The contractor may collect the full contract price
• b.The contractor may collect, but only the cost of materials
• c.The contract is unenforceable, so the unlicensed contractor generally cannot use the courts to collect on it✓
• d.The owner must pay double damages to the contractor

Under O.C.G.A. §43-41-17, a contract entered into by a person required to be licensed but who is not is unenforceable in law or equity (for contracts on or after July 1, 2008). An unlicensed contractor generally cannot sue to collect, which is a powerful incentive to be licensed before contracting.O.C.G.A. §43-41-17

Which situation fits Georgia's owner exemption from the contractor-licensing requirement?

• a.An owner who builds or improves a one-family or two-family residence on their own property for their own occupancy and does not offer it for sale or lease within a set period✓
• b.A developer who builds twelve spec houses a year to sell to the public
• c.A property manager who remodels rental units for absentee investors
• d.A handyman who advertises statewide residential remodeling services

Georgia exempts owners who build or improve a one- or two-family residence on their own property for their own use, provided they do not build for the purpose of sale or lease. Someone building spec homes for the public is acting as a contractor and needs a license.O.C.G.A. §43-41-17(f) (owner exemption)

Georgia's licensing law includes a monetary threshold below which certain specialty/subcontract work does not, by itself, require a general or residential contractor license. Which figure reflects that threshold?

• a.$1,000
• b.$10,000 (or 25% of the total contract), as applied to the specialty scope✓
• c.$50,000
• d.$100,000

Georgia's framework treats limited specialty work under roughly $10,000 (or 25% of the total contract) differently from full general contracting. Larger or general building work requires the appropriate residential or general contractor license. Candidates should confirm the exact current figure with the board, as specialty rules are detailed.O.C.G.A. Title 43, Ch. 41 (scope/specialty threshold)

In Georgia, engaging in the business of contracting without the required license is generally treated as:

• a.A purely civil matter with no penalty
• b.A felony on the first offense
• c.Grounds only for a warning letter
• d.A misdemeanor, in addition to the contract being unenforceable✓

Unlicensed contracting where a license is required is a misdemeanor under Georgia law, and separately the contract itself is unenforceable under O.C.G.A. §43-41-17. The unlicensed operator thus faces both criminal exposure and the loss of the right to collect.O.C.G.A. §43-41-17 (unlicensed practice)

A construction company wants to bid Georgia work as a licensed entity. How does the company hold its license?

• a.Through a qualifying agent, an individual who holds the license and is responsible for the company's contracting✓
• b.By registering the company name only, with no individual licensee
• c.By having every field employee individually licensed
• d.Automatically, once it registers with the Secretary of State

A company contracts under the license of a qualifying agent, an individual who has passed the examinations and taken responsibility for the firm's contracting activities. If the qualifying agent leaves, the company must designate a qualified replacement to keep contracting.O.C.G.A. Title 43, Ch. 41 (qualifying agent)

Under Georgia's mechanics' and materialmen's lien law, within what time after the claimant last furnishes labor or materials must a Claim of Lien be filed for record?

• a.Within 30 days
• b.Within 45 days
• c.Within 90 days✓
• d.Within one year

Georgia law (O.C.G.A. §44-14-361.1) requires a Claim of Lien to be filed of record within 90 days after the claimant last furnished labor, services, or materials to the project. Missing this deadline generally defeats the lien.O.C.G.A. §44-14-361.1(a)(2)

After a Georgia Claim of Lien is filed, within what time must the claimant commence an action to enforce (foreclose) the lien or it becomes unenforceable?

• a.Within 90 days of filing the claim
• b.Within 365 days (one year) from the date the Claim of Lien was filed✓
• c.Within 30 days of filing the claim
• d.Within five years of filing the claim

Georgia requires the lien claimant to file suit to enforce the lien within 365 days (one year) from the date the Claim of Lien is filed of record. The claimant must also file a Notice of Action in the county records within 30 days of filing suit.O.C.G.A. §44-14-361.1(a)(3)

Why is holding a valid Georgia license important to a contractor's lien and collection rights?

• a.It has no effect on lien or collection rights
• b.It only affects the fee charged to file a lien
• c.It merely speeds up permit approval
• d.An unlicensed contractor's contract is unenforceable, which undermines the ability to collect and to rely on the courts to enforce payment✓

Because O.C.G.A. §43-41-17 makes an unlicensed contractor's contract unenforceable, an unlicensed contractor is in a weak position to collect or to enforce a lien claim. Licensure is a precondition to full use of Georgia's payment-collection tools.O.C.G.A. §43-41-17(b); §44-14-361.1

A company qualifying for Georgia's unlimited General Contractor license must maintain general liability insurance of at least:

• a.$500,000✓
• b.$100,000
• c.$50,000
• d.No general liability insurance is required

The General Contractor classification requires at least $500,000 in general liability coverage (the same minimum as Residential-Light-Commercial), reflecting its broad scope. Residential-Basic carries the lower $300,000 minimum.Board Rules Ch. 553 (financial responsibility / insurance)

Under the Georgia Workers' Compensation Act, an employer is generally required to carry workers' compensation coverage once it regularly employs how many workers?

• a.1 or more
• b.2 or more
• c.3 or more✓
• d.5 or more

Georgia requires workers' compensation coverage for employers that regularly employ three or more workers (O.C.G.A. §34-9-2). This differs from states like Florida, where the construction industry triggers coverage at a single employee.O.C.G.A. §34-9-2 (Georgia Workers' Compensation Act)

Which reference is the primary approved study source for the Georgia contractor Business and Law examination?

• a.The Florida Contractors Manual
• b.The Georgia NASCLA Contractors Guide to Business, Law, and Project Management✓
• c.The International Building Code only
• d.The IRS Circular E

The Georgia-specific edition of the NASCLA Contractors Guide to Business, Law, and Project Management is the board-approved reference for the business and law exam. Because the exam is open book, knowing how to navigate this guide is essential.GA board approved reference (business & law)

The Georgia contractor Business and Law examination is best described as:

• a.A closed-book exam with a 90% passing score
• b.An oral interview before the board
• c.A take-home essay assignment
• d.An open-book, multiple-choice exam covering licensing, estimating, business and financial management, tax, labor, project management and lien law, contracts, risk, and safety✓

The Georgia Business and Law exam is an open-book, multiple-choice test drawn from sections such as licensing, estimating and bidding, business organization and financial management, tax, labor, project management and lien law, contracts, risk management, and environmental and safety.GA board examination structure

A candidate passes the NASCLA Accredited Commercial General Building exam and wants a Georgia General Contractor license. What else is required on the examination side?

• a.The candidate must also pass the Georgia Business and Law examination✓
• b.Nothing; the NASCLA exam alone grants the Georgia license
• c.The candidate must pass the Georgia bar examination
• d.The candidate must retake NASCLA every year

NASCLA satisfies only the trade/technical portion. To be licensed as a Georgia General Contractor, the candidate must also pass the separate Georgia Business and Law examination and meet the net-worth, insurance, and experience requirements.GA licensing path (business/law + trade)