Georgia General Contractor Exam — All Questions

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

• a.The State Licensing Board for Residential and General Contractors, under the Secretary of State✓
• b.The Georgia Department of Labor, through the division that also administers unemployment insurance claims
• c.The Georgia Department of Community Affairs, through the office that adopts the state construction codes
• d.Each county's building department, with no statewide board

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

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

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.Residential-Basic requires $500,000, while the General Contractor classification requires only $300,000
• b.Every classification requires the same $100,000 policy, regardless of the type or size of the work performed
• c.Residential-Basic requires $300,000, while the General Contractor classification requires $500,000✓
• d.No classification requires general liability insurance, because the net worth requirement takes its place

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.25 years old
• c.21 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.The NASCLA Accredited Commercial General Building Contractor examination✓
• c.The Florida Certified General Contractor examination
• d.No trade exam is required for the General Contractor tier, only proof of net worth

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 must wait one full calendar year after any single failure before sitting again
• b.The candidate may sit again at a regularly scheduled exam within one year of the original application; a third or later attempt must wait a calendar year✓
• c.The candidate must switch to a residential classification
• d.The candidate is permanently barred from that classification

Board rule 553-4-.01(6) lets an applicant who fails be re-examined at any regularly scheduled examination within one year of the date of the original application. An applicant who wants a third or later attempt must wait at least one calendar year after the last examination and file a new application. A single failure does not trigger the one-year wait, and failing does not bar the candidate or force a change of classification.GA State Licensing Board — examination retake policy

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

• a.Residential-Basic is a statewide license covering every building type, while the General Contractor license is valid only in the county where the contractor's principal office is located
• b.Residential-Basic may build high-rise commercial towers of any height, while the General Contractor tier is restricted to detached one-family and two-family dwellings and townhouses
• c.They are identical in scope and differ only in fee
• 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, because the Limited Tier has no cap on the size of any single contract as long as net worth stays above $25,000
• b.Split the paperwork into two separate invoices of $700,000 each so that neither document exceeds the $1,000,000 per-contract cap
• c.Obtain a county competency card for the project location
• d.Qualify for and hold the unlimited General Contractor classification, because the single contract exceeds $1,000,000✓

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 owner must pay the contractor double damages, because withholding payment is a breach regardless of licensure
• b.The contractor may collect the full contract price
• c.The contract is unenforceable, so the unlicensed contractor generally cannot use the courts to collect on it✓
• d.The contractor may collect, but recovery is limited to the documented cost of materials delivered to the site

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.A property manager who remodels rental units for absentee investors
• b.A developer who builds twelve spec houses a year to sell to the public
• c.A handyman who advertises statewide residential remodeling services
• d.An owner who builds on the owner's own property, for the owner's own use and occupancy, a building that is not offered for sale or lease✓

O.C.G.A. §43-41-17(h) exempts an owner of property who builds or improves a structure on that property for use or occupancy solely by the owner, the owner's family, firm, or employees, and not for use by the general public and not offered for sale or lease. If the building is sold or leased within 24 months after completion, the law presumes it was built for sale or lease. A developer 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)

Under O.C.G.A. §43-41-17, a licensed trade contractor (such as a plumbing, electrical, or conditioned-air contractor) may contract directly with an owner for a job that is predominantly its own trade. Other work that is incidental to and an integral part of that job must not exceed which limit?

• a.The lesser of $1,000 or 5 percent of the total value of the work to be performed
• b.The greater of $50,000 or 50 percent of the total value of the work to be performed
• c.A flat $100,000, regardless of the total value of the work to be performed
• d.The greater of $10,000 or 25 percent of the total value of the work✓

O.C.G.A. §43-41-17(e) lets a contractor licensed under Chapter 14 (plumbing, conditioned air, utility, electrical, low-voltage) contract directly with an owner where the total scope is predominantly its licensed trade and any other work is incidental to and an integral part of it and does not exceed the greater of $10,000 or 25 percent of the total value, at the time of contracting, of the work to be performed. Subsection (f) applies the same test to specialty contractors. Building work beyond that limit needs the residential or general contractor license.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.Grounds only for a warning letter
• b.A felony on the first offense
• c.A purely civil matter with no penalty
• 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 with the board, with no individual licensee attached and no examination required of anyone
• c.Automatically, once it registers with the Secretary of State
• d.By having every field employee individually licensed

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 one year
• d.Within 90 days✓

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 from the date the Claim of Lien was filed with the clerk of superior court
• b.Within 30 days from the date the Claim of Lien was filed with the clerk of superior court
• c.Within five years from the date the Claim of Lien was filed with the clerk of superior court
• d.Within 365 days (one year) from the date the Claim of Lien was filed✓

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 only affects the filing fee the clerk of superior court charges, since licensed contractors pay a reduced rate to record a claim of lien
• b.It merely speeds up permit approval at the local building department and has no bearing at all on a contractor's contract, lien, or payment rights
• c.An unlicensed contractor's contract is unenforceable, which undermines the ability to collect and to rely on the courts to enforce payment✓
• d.It has no effect on lien or collection rights

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

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.2 or more
• b.3 or more✓
• c.1 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 Georgia NASCLA Contractors Guide to Business, Law, and Project Management✓
• b.The International Building Code only, in the edition currently adopted by the State of Georgia
• c.The Florida Contractors Manual, which Georgia adopts by reference for its own examination
• d.IRS Circular E, the Employer's Tax Guide, together with the candidate's own handwritten notes

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.An oral interview before the board
• b.An open-book, multiple-choice exam covering licensing, estimating, business and financial management, tax, labor, project management and lien law, contracts, risk, and safety✓
• c.A take-home essay assignment
• d.A closed-book exam with a 90% passing score that covers only the International Building Code, the National Electrical Code, and the Georgia state amendments to each of those model codes

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 retake the NASCLA examination every year to keep the license active
• b.Nothing more, because passing the NASCLA exam alone grants the Georgia license automatically
• c.The candidate must also pass the Georgia Business and Law examination✓
• d.The candidate must pass the Georgia bar examination administered to attorneys

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)