Contractor License Practice Exam

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Prepare for the Contractor License Exam with comprehensive quizzes. Study with multiple choice questions, flashcards, and detailed explanations to ensure you're ready for success on exam day!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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How many days after receiving payment must prime contractors pay their subcontractors?

5 days
7 days
10 days
14 days

The correct answer is: 7 days

The correct timeframe for prime contractors to pay their subcontractors is typically set at 7 days after receiving payment. This requirement is instrumental in ensuring that subcontractors are not left waiting long periods for payment, which can affect their cash flow and ability to complete their work effectively. Understanding this timeline is crucial for contractors, as it helps maintain good relationships within the supply chain and emphasizes the importance of fiscal responsibility in project management. Additionally, it conforms to legal and regulatory frameworks that aim to protect subcontractors’ rights, ensuring they receive timely compensation for their services. Other options, such as 5, 10, or 14 days, do not reflect the standard legal obligations typically outlined in construction laws and contracts, which prioritize timely payment within a week to support the financial well-being of subcontractors working on a project.