Ohio Contractor's Business and Law Exam

Ohio Contractor's Business and Law Exam: Step-by-Step Study Guide

Preparing for the Ohio Contractor's Business and Law exam is easier one step at a time. This guide starts with the key facts from the official bulletin, then covers the topics on the exam, the reference books, sample questions with answers, and a simple way to prepare. PSI gives the exam.

Ohio Contractor's Business and Law Exam Overview

Start with the facts. Here's what the official bulletin says:

On exam day

• Candidates must bring one valid, unexpired, signature-bearing photo ID matching the name used to register.
• Candidates should arrive 15 minutes before their appointment.
• The Business and Law reference is provided at the testing center and may not be highlighted or written in during the exam, though candidates may also bring their own reference.
• Candidates' own references may be highlighted, underlined and/or indexed before the exam, but may not be written in.
• Candidates are provided an online calculator, which is the only calculator they may use.
• Scratch paper, a pencil and an online calculator are provided, and personal items including electronic devices and writing devices must be stored outside the examination room.

References you may bring

• Contractor's Guide to Business, Law, and Project Management – Ohio (4th Edition)

Scheduling, changes and retakes

• Candidates schedule the examination with PSI online at https://test-takers.psiexams.com/ohconst or by calling PSI at (855) 257-1621.
• The Business and Law examination only needs to be passed once every three years if you later become licensed in another trade.
• Cancellation notice must be received 2 days before the scheduled examination date to cancel and reschedule without forfeiting the fee, and a voice mail message is not acceptable.
• Missing the appointment, arriving after the examination start time, or failing to bring proper identification results in forfeiting the examination fee.
• Candidates receive a printed pass/fail score report immediately after the examination, with diagnostic information on failing reports.
• After failing an examination portion a candidate must wait 60 days before retesting and may retest up to 5 times in a year.

Source: Ohio Construction Industry Licensing Board, Department of Commerce, Division of Industrial Compliance – Contractor Trade Examinations Candidate Information Bulletin, Updated 2/7/2024. Check the bulletin before test day: fees and rules can change.

Topics on the Ohio Contractor's Business and Law Exam

Next, the content. The official content outline has 11 topics:

A Simple Plan to Prepare for the Ohio Contractor's Business and Law Exam

Step one is the books. This is an open-book exam, so the references on the bulletin's list are what you'll work from, while you study and in the exam room. Get the editions the bulletin names.

Step two is learning your way around them. Go through each book's table of contents and index until you know where the major subjects are. You don't need to memorize the books. You need to find things in them.

Step three is marking them up. Highlight the sections you use most. The exam facts above list the bulletin's rules on tabs and markings, so follow them exactly.

Step four is timed practice. Our practice exams run on a clock, so you get used to the real exam's pace: about 2 minutes 24 seconds per question.

Along the way, give the most time to the biggest topics. Estimating and Bidding and Financial Management make up 28% of the exam.

The last step is consistency. Keep practicing until you pass several practice exams in a row. That's the signal you're ready.

Reference Books for the Ohio Contractor's Business and Law Exam

The bulletin lists the NASCLA Contractor's Guide to Business, Law, and Project Management – Ohio, 4th Edition, which is provided in the testing center, but the purchase link it gives points to a 3rd edition tabs bundle.

Where to get them:

• NASCLA Ohio OCILB Guide 4th

On Test Day

Go through the exam at a steady pace. On your first pass, answer the questions you know and bookmark the ones you don't. Every exam lets you come back to bookmarked questions.

On your second pass, return to your bookmarks one at a time. You have 2 hours for 50 questions, which is about 2 minutes 24 seconds per question, so keep moving and don't let one question hold you up. Before you finish, answer anything you skipped. A blank can't earn a point.

Study Tips

On an open-book exam, the winners aren't the smartest people in the room — they're the fastest at finding answers. Buy the required book, practice with it open, and tab and highlight each section the first time a question sends you there. Learn the index and table of contents until you can land on any topic in seconds. That speed is what separates a pass from a fail.

Know your way around each book's index and table of contents. Open-book exams reward speed: you need to find specific items quickly.

On an open-book exam, work through every question once: answer the ones you know and skip the ones you don't. Then go back to the ones you flagged. You can bookmark questions for later review, just like on our exams — and don't sink too much time into any single question. The clock is still running.

Give yourself at least three to six weeks. Use your exam's candidate bulletin as your roadmap for what's tested, and spend your time on finding-it-fast skills over rote memorization. In practice, aim for three clean passes at 80% or higher — setting your practice bar above the real cut score gives you a comfortable margin on test day.

Practicing against a ticking clock is the best way to beat exam-clock anxiety. Use these timed tests to build your pacing, so you learn to move steadily and never burn too long on a single question. By test day, the format feels routine.

Sample Ohio Contractor's Business and Law Practice Questions

Here are a few questions from our practice question bank, each with its answer and reference.

Sample 1 — Insurance and Bonding

Question: Performance and payment bonds are required on federal construction projects valued at greater than which amount?

• A. $100,000
• B. $150,000
• C. $50,000
• D. $250,000

Correct Answer: A

Per the NASCLA Contractors Guide (Ohio), Chapter 4, the Miller Act is the current law requiring performance and payment bonds on all federal construction projects valued at greater than $100,000. The performance bond is normally 100 percent of the contracted price. Note: current law: the Federal Acquisition Regulation (FAR 28.102-1) now requires performance and payment bonds on federal construction contracts exceeding $150,000; the statute and the book still print $100,000.

Reference: NASCLA Contractors Guide, Ohio (4th ed.), Page 4-8

Sample 2 — OSHA Record Keeping and Safety

Question: How long must an employer retain OSHA injury and illness recordkeeping forms (Forms 300, 300A, and 301)?

• A. Ten years following the year to which they pertain
• B. Seven years following the year to which they pertain
• C. Five years following the year to which they pertain
• D. Three years following the year to which they pertain

Correct Answer: C

OSHA records must be kept by the employer for five years following the year to which they pertain. This applies to Forms 300, 300A, and 301.

Reference: NASCLA Contractors Guide, Jobsite Safety and Environmental Factors chapter — OSHA Recordkeeping section

Sample 3 — Personnel Regulations

Question: You employ a properly permitted 15-year-old to perform office and clerical work at your construction office during a week when school is in session. What are the maximum hours this minor may work?

• A. 8 hours a day and 40 hours a week
• B. 4 hours a day and 24 hours a week
• C. 3 hours a day and 18 hours a week
• D. 3 hours a day and 23 hours a week

Correct Answer: C

Under Ohio minor labor law, when school is in session a minor 14 or 15 years of age may not begin work before 7 a.m., work later than 7 p.m., work more than three hours a day, or more than 18 hours a week, and may not work during school hours. The 8-hour/40-hour limit applies only when school is NOT in session or during a school holiday of five or more days.

Reference: NASCLA Contractors Guide, Ohio (4th ed.), Chapter 11 (Employee Management) — Hiring Minors for Construction Work / Working Hours section (ORC Ch. 4109)

Sample 4 — Tax Laws

Question: You are a contractor who calculates your FUTA tax liability for the first quarter at $350 and for the second quarter at $200. What is your deposit obligation at the end of the second quarter?

• A. Deposit $200 for the second quarter only; the first quarter amount was already due
• B. Deposit $550 by July 31, since the combined liability now meets the $500 threshold
• C. No deposit is required; carry both amounts forward to the third quarter
• D. Deposit $350 for the first quarter and carry the $200 forward

Correct Answer: B

Under FUTA deposit rules, if the tax liability for a quarter is less than $500, it is not required to be deposited but is carried forward and added to the next quarter's liability. After Q1 ($350) is carried forward and combined with Q2 ($200), the total is $550, which exceeds the $500 threshold. A deposit of $550 must then be made by the end of the month following Q2 (July 31).

Reference: NASCLA Contractors Guide, Tax Basics chapter — Federal Unemployment Tax (FUTA) section

Practicing Online vs. With a PDF

A PDF lets you read questions at your own pace. The real exam runs on a clock. Our practice exams are timed and on a screen, so you practice finding answers with the clock running. Each attempt draws a new set of questions from our bank, and your results show your score by topic, so you always know what to study next.

Your Next Step

Take the free Ohio Contractor's Business and Law practice exam to see where you stand. Then study the topics that need the most attention, one at a time. For the official rules, read the exam bulletin, and see the licensing board's website.