CSLB Law and Business: Contract Requirements and Execution
Section 5 of CSLB’s Law and Business study guide · about 21% of the exam
115 questions across every section on the 3½-hour clock, with a score for contracts so you know where you stand.
Free contracts drillTwo weeks into a bathroom remodel, the contractor has completed $4,000 of demolition and delivered $2,500 of tile. No down payment was charged, and the homeowner has paid nothing so far. What is the most the contractor may now request in progress payments?
Contract Requirements and Execution on the Law and Business exam
Bidding and estimating, job cost control and scheduling, contract elements, home improvement contracts, change orders and payment rules.
- Share of the exam
- About 21% (CSLB study guide); 24 of the 115 questions in our practice exam
- CSLB’s topics
- Bidding · Cost control · Project organization · Contracts · Payments
- Our drill
- 10 questions from 82 contracts questions, untimed, an explanation after every answer; one free attempt, unlimited with a pass
What contracts questions test
- Bidding: quantity takeoffs, unit costs, overhead and profit, bid errors and when a bid can be withdrawn
- Cost control and project organization: job costing, schedules and the critical path, submittals, change orders and documentation
- Contracts: the elements of a contract, what a home improvement contract must contain, the buyer’s right to cancel, down payment and progress-payment limits, and service and repair contracts
- Payments: retention, prompt payment to subcontractors and suppliers, and what happens when an owner or general contractor pays late
- Disputes: CSLB’s arbitration program and the deadlines for complaints
Sit the full exam under the real clock
115 questions across every section on the 3½-hour clock, with a score for contracts so you know where you stand.
Free contracts drillHow to study it
- This is the largest section on the exam (about 21%). Read the home improvement contract requirements (Business and Professions Code section 7159 and the sections after it) twice.
- Learn each payment rule as “who pays whom, within how many days, after what event”.
- For scheduling questions, practice finding the critical path and float on a small network.
Common questions
What is the biggest section of the Law and Business exam?
Contract Requirements and Execution, at about 21% in CSLB’s study guide: bidding, cost control, project organization, contracts and payments.
Do I need to memorize the home improvement contract rules?
Yes. Home improvement contracts have their own required contents, a limit on the down payment, rules on progress payments and a notice of the buyer’s right to cancel, all in the Business and Professions Code. They come up again and again.
115 questions across every section on the 3½-hour clock, with a score for contracts so you know where you stand.
Free contracts drillThe other Law and Business sections
Section topics and weight from CSLB study guide: Law and Business (13E-LAW, 03-2026), checked November 2026.
Original independent practice questions written to CSLB’s published study guide outline. Not affiliated with or endorsed by the Contractors State License Board (CSLB) or PSI.