Licensing Exam Practice Questions And

South Dakota General Contractor Licensing Exam Practice Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

• Which of the following is the primary responsibility of a general

contractor on a construction project?

• Designing structural elements
• Performing all construction work personally
• Coordinating and managing all aspects of the construction project
• Selling construction materials

Rationale: The general contractor is responsible for managing,

coordinating, and overseeing all aspects of the construction project, including subcontractors and schedules. 1 / 4

• What is the minimum liability insurance coverage generally required

for a South Dakota general contractor license?

• $25,000
• $50,000
• $100,000
• $500,000

Rationale: South Dakota requires general contractors to maintain

liability insurance of at least $100,000 to protect against property damage and bodily injury claims.

• When a contractor receives a building permit, what does it legally

authorize them to do?

• Begin construction without inspections
• Perform work according to approved plans and local codes
• Hire any subcontractors without licensing
• Modify project scope freely

Rationale: A building permit authorizes construction according to

approved plans and ensures compliance with local building codes.

• What is the purpose of a performance bond in construction?
• To pay subcontractors directly
• To reduce material costs
• To guarantee the project will be completed according to contract

terms

• To waive building inspections 2 / 4

Rationale: A performance bond protects the project owner by

ensuring the contractor completes the work as specified.

• Which document outlines the detailed specifications, materials, and

scope of a construction project?

• Purchase order
• Invoice
• Construction plans and specifications
• Building permit

Rationale: Construction plans and specifications provide the detailed

instructions, materials, and quality requirements for the project.

• Which of the following is a key component of South Dakota’s

contractor licensing requirements?

• Owning a construction company for 10 years
• Passing a written examination
• Submitting project photos
• Paying no fees

Rationale: South Dakota requires applicants to pass an exam to

demonstrate knowledge of construction law, codes, and best practices.

• Under South Dakota law, how long must a contractor keep project

records?

• 1 year
• 2 years 3 / 4

• 3 years
• 5 years

Rationale: Contractors are required to maintain project records,

including contracts and invoices, for a minimum of three years for legal and auditing purposes.

• Which of the following best describes “mechanic’s lien” rights?
• A contractor’s right to evict a property owner
• A subcontractor’s right to stop work without notice
• A legal claim against a property for unpaid work or materials
• A tax exemption for contractors

Rationale: Mechanic’s liens allow contractors and subcontractors to

secure payment by placing a legal claim against the property they worked on.

• OSHA regulations apply to which of the following on a job site?
• Only the project owner
• Only subcontractors
• Only office staff
• All workers and contractors

Rationale: OSHA safety standards apply to everyone on a

construction site to prevent accidents and injuries.

• What is the standard slope for a residential roof in South Dakota,

unless otherwise specified?

a. 1:12

• / 4