CSLB Contractor's Law & Business Practice Exam

Which of the following is typically included in the requirement for a contractor’s prime contract?

1. A schedule of payments

2. A warranty for completed work

3. The contractor’s license number

4. A list of subcontractors

The correct answer is: The contractor’s license number

In a contractor's prime contract, elements such as a schedule of payments, warranties for completed work, and lists of subcontractors are typically included to outline the terms, responsibilities, and expectations related to the project. While the contractor's license number is an important piece of information that may be referenced in various documents or required in certain states to obtain permits or licenses, it is not standard practice to include the license number directly within the main body of the prime contract. A schedule of payments is essential to clarify when and how the contractor will be compensated. A warranty for completed work ensures that the contractor guarantees their work for a certain period, protecting the owner's investment. A list of subcontractors can also be important as it provides transparency regarding who will be working on the project and their qualifications. Given this context, while the contractor’s license number is critical for regulatory compliance and establishing the contractor's legitimacy, it is not generally a core component of the prime contract itself, which typically focuses on the project's execution details rather than regulatory details.