Georgia General Contractor Exam — All Questions

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