Contractor License Practice Exam

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Prepare for your Contractor License Exam with our comprehensive quiz. Engage with multiple-choice questions, each providing hints and explanations to enhance your understanding. Get ready to ace your exam and secure your license!

Practice this question and more.

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.