Alabama - Business & Law Examination (formerly General Contractor Examination)

Free float is how long an activity can be delayed without impacting the early start of the NEXT activity, while total float is the leeway allowed without delaying overall project completion.

Arbitration produces a legally binding arbitral award rendered by a third-party arbitrator, while mediation produces a non-binding decision.

All-risk covers direct loss from any peril not specifically excluded, while named peril specifies only the covered perils (e.g., fire and lightning), providing narrower coverage.

Percentage of completion recognizes income as it is earned throughout the project, while completed contract defers income recognition until the contract is finished and is restricted to small contractors with ≤$10M average annual gross receipts.

Project overhead costs (e.g., temporary storage, bonds, dumpsters) are tied to a specific job site, while company overhead costs (e.g., office rent, accounting fees, legal fees) are ongoing business expenses not tied to a single project.

Prime contractors pay a $300 application fee and a $200 renewal fee and are subject to bid limits, while subcontractors pay a $150 application fee and a $100 renewal fee and are NOT subject to bid limits.

A unit-price contract pays the contractor based on actual quantities used when the full extent of work cannot be determined in advance, while a fixed-price contract sets a single predetermined amount for the entire scope of work.

An employee is distinguished from an independent contractor by evaluating three IRS factors: behavioral control, financial control, and type of relationship between the parties.

Prime contractors must file a mechanics' lien within 6 months after last work or materials were furnished, while laborers and journeymen must file within 30 days after last work was performed.

Classification A has a maximum bid limit of $100,000, while Classification D has a maximum bid limit of $1,000,000.

A general contractor's license is required when project cost (labor + materials) is $50,000 or more, while a swimming pool contractor's license is required when cost exceeds $5,000.