A contract package lists several subcontractors by trade. What additional pre-contract check does CSLB recommend regarding those subcontractors?
Correct Answer
A) Make sure the contractor hires only licensed subcontractors and check their licenses.
CSLB lien-prevention guidance tells consumers to make sure the contractor hires only licensed subcontractors and to check their licenses.
Why This Is the Correct Answer
CSLB lien-prevention guidance tells consumers to make sure the contractor hires only licensed subcontractors and to check their licenses.
Why the Other Options Are Wrong
Option B: Assume every subcontractor is licensed because the prime contractor has a website, based on the prime contractor saying everyone is experienced.
Assume every subcontractor is licensed because the prime contractor has a website, based on the prime contractor saying everyone is experienced. skips the written authority, scope, price, notice, or release control needed for pre-contract lien prevention.
Option C: Avoid asking for subcontractor names until after final payment.
Avoid asking for subcontractor names until after final payment. skips the written authority, scope, price, notice, or release control needed for pre-contract lien prevention.
Option D: Let the supplier decide whether each subcontractor needs a license.
Let the supplier decide whether each subcontractor needs a license. skips the written authority, scope, price, notice, or release control needed for pre-contract lien prevention.
Memory Technique
Reviewing Subcontractor shortcut is not a term until paper carries it.
Reference Hint
Study anchor (closed-book): memorize Pre-contract lien prevention from CSLB Mechanics Lien guidance; CSLB license check / California Civil Code mechanics lien prevention; CSLB licensing; know the rule or calculation trigger without relying on exam-room lookup.
More Law & Business Questions
A Fresno homeowner wants a $725 cabinet repair and trim adjustment. Which contract step best matches CA home improvement requirements?
A project has $6,500 retainage withheld. The owner releases 60 percent of retainage at substantial completion. How much cash is released?
Cash is $52,500 and monthly burn is $17,500. How many months of runway are available?
A supplier offers 1.5 percent early-pay discount on a $22,000 invoice. What is the discount?
A balance sheet lists assets of $310,000 and liabilities of $185,000. What is owner's equity?
A job is estimated to cost $135,000. What price gives a 25 percent gross margin?
A customer invoice of $4,000 has a stated late charge of 1.5 percent. What late charge is added?
A bid has direct labor of $18,000, materials of $12,500, and equipment rental of $3,500. If the contractor adds 20 percent markup on direct cost, what is the bid price?
A contractor wants a 25 percent gross margin on a job with estimated cost of $60,000. What selling price gives that margin?
A completed project sold for $150,000 and had total cost of $126,000. What gross margin percentage did the project earn?
