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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The Prompt Payment Act requires that prime contractors must be paid within how many days after submitting a progress payment?

10 days
14 days
21 days
30 days

The correct answer is: 14 days

The Prompt Payment Act mandates that prime contractors should receive payment within 14 days after they have submitted a progress payment. This regulation is designed to promote timely payments throughout the construction industry, ensuring that contractors can maintain cash flow and continue their work without unnecessary financial strain. By requiring payment within this specific timeframe, the Act aims to enhance the financial stability of contractors, which ultimately contributes to smoother project completion and more efficient operations within the construction sector. Other timeframes listed, such as 10, 21, or 30 days, do not align with the compliance expectations set forth by the Act and would not effectively address the need for prompt financial transactions that are fundamental to maintaining healthy business relationships and project efficiency in the construction industry.