10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The CBL-Prov exam has 50 questions and runs 2 hours.
These 10 free CBL-Prov questions are organized by exam domain, so you can see how each part of the Contractor Business and Law Examination (Prov) blueprint is tested. Reveal the answer and explanation under each question.
Domain 1: Business Organization
Question 1
An LLC contractor pays the owner's personal mortgage from the company account, deposits project receipts into a personal account, and keeps no records of the transfers. In a claim seeking to reach the owner's personal assets, which fact most seriously undermines the liability shield?
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Correct answer: C - The owner commingles company and personal funds
Domain 2: Licensing
Question 2
A Utah contractor's qualifier permanently leaves the licensed entity on March 4. The licensee sends written notice to DOPL on March 11. Which remaining deadline controls replacement of the qualifier?
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Correct answer: A - Replace the qualifier within 60 days after March 4
Question 3
A handyman agrees to a $6,650 nonregulated interior remodel, including labor and materials. After an approved addition, the aggregate agreed value becomes $7,250. No electrical, plumbing, gas, fire-protection, or alarm work is involved. Under Utah's limited-work exemption, what is the result?
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Correct answer: A - The exemption no longer applies because the total is not less than $7,000
Domain 3: Lien Laws
Question 4
An estimator has verified that direct costs, job overhead, company overhead, bonds, and contingency total $360,000. Management requires a 20% profit margin on the selling price. Before tax or owner alternates, what bid price meets that margin?
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Correct answer: B - $450,000
Domain 4: Tax Laws
Question 5
At a progress meeting, the owner's architect asks the superintendent to add a canopy. The contract identifies a different person as the only owner representative authorized to approve changes, and there is no emergency. What should the contractor do?
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Correct answer: A - Obtain an authorized written change covering scope, price, and time before starting the canopy
Domain 5: Safety OSHA
Question 6
On a project, planned value is $500,000, earned value is $480,000, and actual cost is $400,000. Which status is shown by the earned-value data?
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Correct answer: B - Under budget and behind schedule
Domain 6: Labor Laws
Question 7
A drywall installer reports daily to the contractor's superintendent, uses company tools, follows company methods, is paid hourly, and works indefinitely on the contractor's core crews. The agreement calls the installer an independent contractor. For federal employment-tax purposes, which classification is best supported?
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Correct answer: D - Employee, because the actual control and relationship govern
Domain 7: Contract Management
Question 8
A Utah claimant timely records a valid construction lien but first mails the required owner copy by certified mail 41 days after filing. Assume all other requirements are satisfied. What is the most accurate consequence of that service failure?
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Correct answer: C - Costs and attorney fees against the owner are barred; the lien is not void for that reason
Domain 9: Estimating and Bidding
Question 9
A subcontract requires the general contractor to be an additional insured. The subcontractor provides a certificate of insurance that lists the general contractor only as certificate holder. What should the general contractor verify before treating the requirement as satisfied?
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Correct answer: D - The policy or an endorsement actually grants additional-insured status
Domain 11: Risk Management
Question 10
During excavation, an operator damages a natural-gas line and escaping gas is audible. Which response is required?
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Correct answer: D - Stop work, clear the area, call 911, and notify the utility operator