Free Public Works Contractor Exam Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Public Works Contractor Exam practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A contractor is preparing a business plan and needs a one- or two-page overview that defines the venture's scope and purpose and summarizes its management, marketing, operations, and finances. Which part should contain that overview?

   1. A. Executive summary
   2. B. Operations plan
   3. C. Financial plan
   4. D. Marketing plan

   Answer: A

   Explanation: The manual directs the writer: "In one or two pages, write an overview of the business. Define its scope and purpose, describe the industry in which it operates, and outline the management, marketing, operation and financial plans." That is the executive summary.

   Reference: CONTRACTOR’S MANUAL — Section 1, Executive Summary, page 10

2. 2A new contracting company wants a professional to prepare tax returns, review its accounting system, and assemble lender-required financial information. Which adviser best fits those needs?

   1. A. Attorney
   2. B. CPA or LPA
   3. C. Insurance agent
   4. D. Commercial banker

   Answer: B

   Explanation: The manual says CPAs and LPAs can "Prepare tax returns and recommend tax-planning strategies" and "Review a company’s accounting system and recommend improvements." Those services match the company's needs.

   Reference: CONTRACTOR’S MANUAL — Section 2, Selecting an Accountant, page 13

3. 3Which requirement specifically satisfies the examination element of an initial Idaho Public Works Contractor License application?

   1. A. Submit the prescribed application and supporting documents
   2. B. Pass an examination approved by the Board
   3. C. Pay the applicable nonrefundable application fee
   4. D. Obtain the required approval from the state

   Answer: B

   Explanation: IDAPA 24.39.50 states: "Applicants for licensure must pass an examination as approved by the Board." The other choices are real licensing steps, but they do not satisfy the examination element.

   Reference: 243950 — Licensure — Examination, page 4

4. 4A contractor is designing an accounting workflow. Which activity comes first and supplies the raw financial data for later accounting steps?

   1. A. Bookkeeping
   2. B. Ratio analysis
   3. C. Financial-statement audit
   4. D. Depreciation forecasting

   Answer: A

   Explanation: The manual states: "Bookkeeping is the first step in the accounting process." It records the money received and spent before later reporting and analysis occur.

   Reference: CONTRACTOR’S MANUAL — Section 5, Bookkeeping, page 22

5. 5A 42-year-old applicant claims a contractor rejected him because of his age. Which federal employment law specifically protects workers in his age group?

   1. A. Age Discrimination in Employment Act
   2. B. Equal Pay Act
   3. C. Employee Polygraph Protection Act
   4. D. Uniformed Services Employment and Reemployment Rights Act

   Answer: A

   Explanation: The manual states: "This law protects people who are 40 or older from discrimination because of age." That protection is provided by the ADEA.

   Reference: CONTRACTOR’S MANUAL — Section 6, Age Discrimination in Employment Act, pages 39-40

6. 6In an open public-works bid, all competitors use the owner's proposal form. How is the quoted offer handled after submission?

   1. A. It is final and is opened and read publicly
   2. B. It remains negotiable in a private interview
   3. C. It may be adjusted after all competing prices are disclosed
   4. D. It is treated only as a nonbinding rough estimate

   Answer: A

   Explanation: The manual says of open bids: "The price quoted in the offer is final, no adjustments to the bid are allowed. Open bids are opened and read publicly."

   Reference: CONTRACTOR’S MANUAL — Section 8, Bidding, page 79

7. 7An owner responds to a contractor's definite offer but changes a material term instead of accepting it without qualification. Which validity element has not yet been satisfied?

   1. A. Offer and acceptance
   2. B. Consideration
   3. C. Legal purpose
   4. D. Capacity of the parties

   Answer: A

   Explanation: The manual requires "a clear or definite offer to contract and an unqualified acceptance." A materially qualified response does not meet that element.

   Reference: CONTRACTOR’S MANUAL — Section 9, Contract validity, page 84

8. 8Which activity is a project rather than a repetitive business operation?

   1. A. Constructing a one-time water-treatment facility
   2. B. Processing the company's weekly payroll
   3. C. Performing recurring office-supply purchases
   4. D. Running the routine preventive-maintenance program

   Answer: A

   Explanation: The manual explains: "A project is a temporary endeavor with a defined beginning and end" and contrasts it with repetitive permanent or semi-permanent operations.

   Reference: CONTRACTOR’S MANUAL — Section 10, Project Management, page 88

9. 9An Idaho contractor buys taxable tangible personal property for use in Idaho, and no sales tax was paid to the seller. What state tax is generally due on that use, consumption, or storage?

   1. A. A six-percent use tax
   2. B. A three-percent excise tax
   3. C. A five-percent franchise tax
   4. D. A seven-percent withholding tax

   Answer: A

   Explanation: The manual states: "A six-percent (6%) use tax is due on the use, consumption or storage of tangible personal property in Idaho on which sales tax was not paid."

   Reference: CONTRACTOR’S MANUAL — Section 12, Idaho Sales and Use Tax, page 145

10. 10An Idaho lien claimant has completed its labor and services on private property. Within what period must the claim of lien be filed for record?

    1. A. 30 days
    2. B. 60 days
    3. C. 90 days
    4. D. 120 days

    Answer: C

    Explanation: Idaho Code section 45-507(2) states: "The claim shall be filed within ninety (90) days after the completion of the labor or services, or furnishing of materials."

    Reference: Section 45-507 – Idaho State Legislature — Idaho Code Section 45-507(2)