Contractor License Practice Exam

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Prepare for your Contractor License Exam with our comprehensive quiz. Featuring multiple-choice questions and detailed explanations, this resource is designed to help you ace your exam and secure your license with confidence!

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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.