10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The AL-BL exam has 50 questions and runs 2 hours.
These 10 free AL-BL questions are organized by exam domain, so you can see how each part of the Alabama General Contractors Business and Law Examination blueprint is tested. Reveal the answer and explanation under each question.
A qualifying party who supports an Alabama contractor's license leaves the company on June 3. The contractor intends to keep operating under the same licensed entity. Which compliance plan matches the Board's timing rules?
Correct answer: B - Notify the Board within 30 days and qualify an eligible replacement within 60 days
An Alabama prime-license applicant has $72,000 net worth and $44,000 working capital. The Board approves a $16,000 line of credit for bid-limit purposes, and the applicant meets the separate $10,000 minimums. What ordinary maximum bid limit follows?
Correct answer: D - $600,000
An estimator has verified that direct costs, project overhead, home-office overhead, and contingency total $480,000. Management requires a 20% margin on the selling price. Which bid amount meets that requirement without changing the cost estimate?
Correct answer: B - $600,000
An unpaid material supplier furnished covered materials to a subcontractor on an Alabama public project. The supplier has no direct contract with the prime contractor or the awarding authority. Which course best preserves the supplier's statutory remedy?
Correct answer: B - Give the required 45-day pre-suit notice and sue on the payment bond within one year after final settlement
At the status date, a $1,500,000 contract has a latest estimated total cost of $1,200,000. Costs incurred are $600,000, and billings are $825,000. Using cost-to-cost percentage of completion, which WIP conclusion is correct?
Correct answer: A - The job is 50% complete and $75,000 overbilled; the excess billing is a contract liability, not additional profit
A contractor is a monthly federal payroll-tax depositor. On Tuesday, accumulated employment-tax liability reaches $102,000. Which deposit action is required?
Correct answer: C - Deposit by the next business day and use the semiweekly schedule for the rest of this year and next year
A nonexempt laborer works 44 hours in one workweek after ignoring a written rule requiring advance approval for overtime. The supervisor confirms all 44 hours were actually worked. What is the lawful payroll response?
Correct answer: D - Pay all 44 hours with the required overtime premium, then address the approval violation separately
The contract documents show soil borings indicating dense sand. Excavation instead encounters continuous rock that materially increases cost and time. The contract contains a differing-site-conditions clause. What is the strongest initial response?
Correct answer: C - Treat it as a potential Type I condition, stop only affected work safely, give prompt notice, and permit investigation
The subcontract requires the owner to be an additional insured for ongoing and completed operations. The subcontractor supplies a certificate of insurance listing the owner, but no policy endorsement. What should the contractor conclude?
Correct answer: D - Treat the status as unverified and obtain the actual additional-insured endorsements for both periods
A crew is working in a 6-foot-deep trench in Type C soil. The sides are vertical, the nearest ladder is 40 feet away, and excavated spoil is piled 12 inches from the edge. Which site correction addresses the applicable trench requirements?
Correct answer: D - Provide a compliant protective system, place egress within 25 feet, and keep spoil at least 2 feet back
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