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Section 5 of 7

CSLB Bidding Practice Questions

10 free practice questions on bidding, part of the Contract Requirements and Execution section (about 21% of the exam). Try each one, then open the answer: every choice is explained and the law is quoted.

Questions and answers

  1. Contract Requirements and Execution

    1. A prime contractor bids on a public works project. Under the Subletting and Subcontracting Fair Practices Act, which subcontractors must the prime contractor list in the bid?

    • A. Every subcontractor, no matter how small its share of the total bid
    • B. Each subcontractor whose work is more than one-half of 1 percent of the total bid
    • C. Each subcontractor whose work is more than 5 percent of the prime contractor's total bid
    • D. Only subcontractors whose share of the work is more than $100,000
    Show answer

    Correct answer: B

    • A. Every subcontractor, no matter how small its share of the total bid

      The law does not require listing every subcontractor. Very small subcontracts below one-half of 1 percent of the total bid do not have to be listed.

    • B. Each subcontractor whose work is more than one-half of 1 percent of the total bid

      Correct answer

      Section 4104 requires the bid to list each subcontractor who will do work in an amount of more than one-half of 1 percent of the prime contractor's total bid.

    • C. Each subcontractor whose work is more than 5 percent of the prime contractor's total bid

      This changes the cutoff from one-half of 1 percent to 5 percent of the total bid. The 5 percent figure is not the test in the law.

    • D. Only subcontractors whose share of the work is more than $100,000

      The test is one-half of 1 percent of the prime contractor's total bid, not a flat $100,000 amount.

    Explanation

    Public Contract Code section 4104 requires the bid to list each subcontractor who will do work in an amount of more than one-half of 1 percent (0.5 percent) of the prime contractor's total bid. For each one, the bid gives the name, place of business, license number, and public works registration number. Very small subcontracts below this amount do not have to be listed. The 5 percent and $100,000 figures are not the test in the law.

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  2. Contract Requirements and Execution

    2. A prime contractor breaks the Subletting and Subcontracting Fair Practices Act on a $90,000 subcontract. The awarding authority chooses a money penalty instead of canceling the contract. What is the largest penalty it may assess?

    • A. $900
    • B. $4,500
    • C. $9,000
    • D. $18,000
    Show answer

    Correct answer: C

    • A. $900

      $900 uses 1 percent of the subcontract. The law allows a penalty of up to 10 percent, which is $9,000.

    • B. $4,500

      $4,500 uses 5 percent of the subcontract. The largest penalty allowed is 10 percent, or $9,000.

    • C. $9,000

      Correct answer

      Section 4110 allows a penalty of not more than 10 percent of the subcontract involved, and $90,000 x 0.10 = $9,000.

    • D. $18,000

      $18,000 uses 20 percent, which is more than the 10 percent limit in section 4110.

    Explanation

    Public Contract Code section 4110 lets the awarding authority cancel the contract or assess a penalty of not more than 10 percent of the subcontract involved. Step 1: 10 percent is 0.10. Step 2: $90,000 x 0.10 = $9,000. So the largest penalty is $9,000. $4,500 uses 5 percent, $900 uses 1 percent, and $18,000 uses 20 percent.

    Source

  3. Contract Requirements and Execution

    3. Every bid on a public works contract of a public entity must include which signed statement?

    • A. A statement of the bidder's yearly profit and loss
    • B. A list of all public projects the bidder has lost
    • C. A promise to hire workers only from the local area
    • D. A noncollusion declaration made under penalty of perjury
    Show answer

    Correct answer: D

    • A. A statement of the bidder's yearly profit and loss

      Section 7106 does not require a profit and loss statement. The required statement is a noncollusion declaration under penalty of perjury.

    • B. A list of all public projects the bidder has lost

      A list of lost public projects is not required by section 7106. Every bid must include a noncollusion declaration under penalty of perjury.

    • C. A promise to hire workers only from the local area

      A local hiring promise is not required by section 7106. The required statement is a noncollusion declaration under penalty of perjury.

    • D. A noncollusion declaration made under penalty of perjury

      Correct answer

      Section 7106 says every bid on every public works contract of a public entity must include a declaration under penalty of perjury that the bid is genuine and not collusive or sham.

    Explanation

    Public Contract Code section 7106 says every bid on every public works contract of a public entity must include a noncollusion declaration under penalty of perjury. In it, the bidder states that the bid is genuine and not collusive or sham. Collusion means secretly working with other bidders to fix prices. A profit and loss statement, a list of lost projects, and a local hiring promise are not required by this section.

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  4. Contract Requirements and Execution

    4. After award, a public agency issues a change order that adds new work. The prime contractor's bid listed no subcontractor for this work. The added work is 3 percent of the prime's total bid. Under Public Contract Code section 4107, may the prime subcontract it?

    • A. No, because the work is more than one-half of 1 percent
    • B. No, unless the awarding authority first holds a public hearing
    • C. Yes, but only if the change-order work is under $10,000
    • D. Yes, because the rule has an exception for change orders
    Show answer

    Correct answer: D

    • A. No, because the work is more than one-half of 1 percent

      The one-half of 1 percent bar in section 4107(c) begins with "Other than in the performance of change orders." Work added by a change order is outside that bar.

    • B. No, unless the awarding authority first holds a public hearing

      Section 4107(c) requires no hearing for this exception. Work added by a change order is simply outside the bar.

    • C. Yes, but only if the change-order work is under $10,000

      Section 4107(c) sets no dollar limit for the change-order exception. The work may be subcontracted no matter its size.

    • D. Yes, because the rule has an exception for change orders

      Correct answer

      Section 4107(c) bars subcontracting unlisted work over one-half of 1 percent of the total bid, "other than in the performance of change orders." Because this work was added by a change order, the prime may subcontract it.

    Explanation

    Public Contract Code section 4107(c) bars a prime contractor from subcontracting unlisted work over one-half of 1 percent of its total bid. But the rule begins with "Other than in the performance of change orders," so work added by a change order is outside this bar. The section sets no dollar limit for this exception and requires no hearing. Without a change order, unlisted work over one-half of 1 percent would have to be done by the prime contractor itself.

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  5. Contract Requirements and Execution

    5. A contractor is not registered with the Department of Industrial Relations (DIR). It wants to submit its own bid on a $500,000 city public works construction project. No special exception applies. Under Labor Code section 1771.1, may it bid?

    • A. Yes, if it registers before it starts work on the project
    • B. Yes, if it registers within 30 days after the contract award
    • C. Yes, because a valid CSLB license is enough to bid
    • D. No, because it must be registered to bid on public work
    Show answer

    Correct answer: D

    • A. Yes, if it registers before it starts work on the project

      Registering before work starts is too late. Under section 1771.1(a), a contractor is not qualified to bid unless it is currently registered with DIR.

    • B. Yes, if it registers within 30 days after the contract award

      Registering after the award is too late. A bid shall not be accepted without proof of current DIR registration.

    • C. Yes, because a valid CSLB license is enough to bid

      A CSLB license alone is not enough. The contractor must also be currently registered with DIR to bid on public work.

    • D. No, because it must be registered to bid on public work

      Correct answer

      Correct. Section 1771.1 says a contractor is not qualified to bid on public work unless currently registered with DIR, and this $500,000 project is above the $25,000 cutoff for the rule.

    Explanation

    Labor Code section 1771.1(a) says a contractor or subcontractor is not qualified to bid on, be listed in a bid for, or work on a public works contract unless it is currently registered with DIR under section 1725.5. Section 1771.1(b) adds that a bid shall not be accepted without proof of current registration. A CSLB license alone is not enough, and planning to register after the bid does not qualify the contractor to bid now. The registration rule does not apply to construction projects of $25,000 or less, but this project is $500,000.

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  6. Contract Requirements and Execution

    6. Public works bid specifications name a product brand followed by the words "or equal." They do not set a time to submit data for a request to substitute an equal item. Under Public Contract Code section 3400, when may the contractor submit this data?

    • A. Only before the bids are opened
    • B. Within 10 days after the contract award
    • C. Within 35 days after the contract award
    • D. Within 90 days after the contract award
    Show answer

    Correct answer: C

    • A. Only before the bids are opened

      Wrong. When no time period is specified, data may be submitted any time within 35 days after the contract award, so the contractor is not limited to the time before bids open.

    • B. Within 10 days after the contract award

      Wrong. This shortens the period; the law allows any time within 35 days after the award, not 10 days.

    • C. Within 35 days after the contract award

      Correct answer

      Correct. Under section 3400(b), if the specifications set no time period, data may be submitted any time within 35 days after the award of the contract.

    • D. Within 90 days after the contract award

      Wrong. This lengthens the period; the law allows 35 days after the award, not 90 days.

    Explanation

    Public Contract Code section 3400(b) says specifications must give a period of time before or after the contract award to submit data that supports a request to substitute an equal item. If no time period is specified, data may be submitted any time within 35 days after the award of the contract. So the contractor is not limited to the time before bids open, and 10 or 90 days are not the figures in the law.

    Source

  7. Contract Requirements and Execution

    7. A prime contractor's written request for subbids on a public works job clearly states the amount and requirements of a performance and payment bond. It does not say who pays for the bond. Under Public Contract Code section 4108, who pays the bond premium (cost)?

    • A. The subcontractor, because it must be ready to give a bond
    • B. The awarding authority, because it owns the public project
    • C. The prime contractor, because the request did not shift the cost
    • D. The prime and the subcontractor, each paying one half
    Show answer

    Correct answer: C

    • A. The subcontractor, because it must be ready to give a bond

      A subcontractor must be ready to give a bond, but that does not make it pay the premium. The cost shifts to the subcontractor only if the prime's request for subbids says so, and this one did not.

    • B. The awarding authority, because it owns the public project

      The law does not put the bond cost on the awarding authority. Section 4108(b) says the subcontractor furnishes the bond at the expense of the prime contractor.

    • C. The prime contractor, because the request did not shift the cost

      Correct answer

      Correct. Section 4108(b) puts the bond expense on the prime contractor, and the subcontractor pays only if the request for subbids says so, which this request did not.

    • D. The prime and the subcontractor, each paying one half

      The law does not split the bond cost in half. Unless the request for subbids says the subcontractor pays, the prime contractor pays the whole premium.

    Explanation

    Public Contract Code section 4108(b) says the subcontractor furnishes the bond at the expense of the prime contractor. Section 4108(c)(2) says that if the subcontractor is to pay for the bond, the prime's written or published request for subbids must say so. This request did not say so, so the prime contractor pays. A subcontractor must be ready to give a bond, but that duty does not make it pay the premium. The law does not put the cost on the awarding authority or split it in half.

    Sources

  8. Contract Requirements and Execution

    8. A prime contractor's public works bid is $1,000,000. The bid listed no subcontractor for some trim work worth $4,000. After award, the prime wants to subcontract that trim work. This is not a change order. Under Public Contract Code section 4107, may it do so?

    • A. No, because every unlisted portion must be done by the prime
    • B. Yes, because $4,000 is not more than one-half of 1 percent
    • C. No, unless the awarding authority first holds a public hearing
    • D. Yes, but only after a written emergency finding is made
    Show answer

    Correct answer: B

    • A. No, because every unlisted portion must be done by the prime

      Only unlisted portions over one-half of 1 percent of the total bid must be done by the prime. Here that limit is $5,000, and the $4,000 trim work is not more than it.

    • B. Yes, because $4,000 is not more than one-half of 1 percent

      Correct answer

      Correct. One-half of 1 percent of $1,000,000 is $5,000, and section 4107(c) bars subcontracting only unlisted portions over that amount; $4,000 is not over it.

    • C. No, unless the awarding authority first holds a public hearing

      No hearing is needed for this small portion. The $4,000 trim work is not more than one-half of 1 percent of the total bid ($5,000), so the rule does not stop it.

    • D. Yes, but only after a written emergency finding is made

      The written emergency finding applies only to unlisted portions over one-half of 1 percent of the total bid. The $4,000 trim work is not more than that $5,000 limit.

    Explanation

    Public Contract Code section 4107(c) bars a prime from subcontracting an unlisted portion only when it is more than one-half of 1 percent of the total bid. One-half of 1 percent of $1,000,000 is 0.005 x $1,000,000 = $5,000. The trim work is $4,000, which is not more than $5,000, so the rule does not stop it. The duty to do unlisted work itself, and the written emergency finding, apply only to portions over that amount. No hearing is needed for this small portion.

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  9. Contract Requirements and Execution

    9. On a public works bid, how many subcontractors may the prime contractor list for one portion of the work?

    • A. Only one subcontractor for each portion
    • B. Up to two subcontractors for each portion
    • C. Up to three subcontractors for each portion
    • D. As many subcontractors as the prime contractor wants
    Show answer

    Correct answer: A

    • A. Only one subcontractor for each portion

      Correct answer

      Section 4104 says the prime contractor shall list only one subcontractor for each portion of the work, as the prime contractor defines the portions in its bid.

    • B. Up to two subcontractors for each portion

      Listing two subcontractors for the same portion is not allowed. The law permits only one subcontractor for each portion.

    • C. Up to three subcontractors for each portion

      The law allows only one subcontractor per portion, not three. If the prime contractor lists more than one for the same portion, it must do that portion itself.

    • D. As many subcontractors as the prime contractor wants

      The prime contractor may not list as many as it wants. It may list only one subcontractor for each portion.

    Explanation

    Public Contract Code section 4104 says the prime contractor shall list only one subcontractor for each portion of the work, as the prime contractor defines the portions in its bid. Listing two or more subcontractors for the same portion is not allowed. Under section 4106, if the prime contractor lists more than one subcontractor for the same portion, it must do that portion itself.

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  10. Contract Requirements and Execution

    10. A contractor bids $2,400,000 to build a new county library. This is not a street or highway project. Under Public Contract Code section 4104, the bid must list each subcontractor whose work is more than what amount?

    • A. $2,400
    • B. $12,000
    • C. $24,000
    • D. $120,000
    Show answer

    Correct answer: B

    • A. $2,400

      $2,400 comes from using 0.1 percent of the bid. The law uses one-half of 1 percent, which gives $12,000.

    • B. $12,000

      Correct answer

      One-half of 1 percent is 0.005, and $2,400,000 x 0.005 = $12,000. So each subcontractor whose work is more than $12,000 must be listed.

    • C. $24,000

      $24,000 comes from using 1 percent of the bid instead of one-half of 1 percent.

    • D. $120,000

      $120,000 comes from using 5 percent of the bid. The law uses one-half of 1 percent, which gives $12,000.

    Explanation

    Section 4104 says a subcontractor must be listed if its work is more than one-half of 1 percent of the prime contractor's total bid. Step 1: One-half of 1 percent is 0.5 percent, or 0.005. Step 2: $2,400,000 x 0.005 = $12,000. So each subcontractor whose work is more than $12,000 must be listed. $24,000 comes from using 1 percent instead of one-half of 1 percent. $120,000 comes from using 5 percent, and $2,400 comes from using 0.1 percent.

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Keep studying

Read the Section 5 study notes: Contract Requirements and Execution

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