What's on the Oklahoma Electrical Business and Law Exam? All 8 Areas, Lien Law and Licensing Rules
PSI's outline for Oklahoma's Electrical Business and Law exam: 50 questions across 8 areas, the NASCLA guide and Oklahoma rules it draws on, the bond, insurance, vehicle-lettering and fine-schedule rules, lien deadlines, workers' compensation, and a study plan built on the counts.
November 13, 20266 min readOklahoma Electrical Business and Law
Contents
What's on the Oklahoma Electrical Business and Law Exam?
The Electrical Business and Law exam is 50 questions in 120 minutes, and you need 35 (70%) to pass. PSI publishes the number of questions in each area, so you can study to the real weights.
The outline (50 questions)
| Area | Questions | Subtopics PSI lists |
|---|---|---|
| Bidding and Estimating | 10 | General estimating; bids |
| Financial | 8 | Business organization, start-up, accounting method, cash flow, receivables, payables, balance sheet, income statement, taxes on company income, financing, checking account, financial ratios |
| Project Management and Supervision | 7 | Oversight, budget, quality control, materials control, jobsite safety, schedule, hazardous materials, environmental protection, submittals and reports, ethics, liens |
| Licensing Requirements | 6 | Required insurance and bonds; renewal |
| Contracts | 5 | Terminology, required elements, contract types, change orders, standardized documents, interpretation, warranties, inclusions, other obligations |
| Labor and Personnel | 5 | ADA, labor standards, non-citizens and non-residents, workers' compensation, federal or state OSHA, new hires, personnel records |
| Payroll and Payroll Taxes | 5 | Taxes; forms and due dates |
| Risk Management | 4 | Insurance; bonds |
| Total | 50 |
We sorted the table by count; the bulletin lists the areas in a different order. Up to 10 unscored experimental questions may be added.
Where the questions come from
The business areas come mostly from the NASCLA Contractors Guide to Business, Law and Project Management, Basic 14th edition. The Oklahoma law comes from the rest of the reference list: OAC 158:40 (electrical rules), OAC 158:10 (CIB fine schedule), the Electrical License Act (Title 59), the lien law (Title 42, Chapter 3) and the Workers' Compensation Act (Title 85A).
Oklahoma licensing rules worth knowing cold
The licensing area is 6 questions, and risk management adds 4 more on insurance and bonds. These rules come up:
- Bond and insurance (OAC 158:40-5-5). An active contractor files a $5,000 license bond, continuous with a 30-day cancellation notice, and a general liability certificate of at least $50,000 combined single limit, with CIB as certificate holder, not as additional insured. You also furnish proof of workers' compensation or an exemption. Without them, CIB issues an inactive license.
- Lettering and advertising (OAC 158:40-5-4). The firm name and license number, with the "OK" prefix, in letters at least 2 inches high on both sides of every vehicle that carries tools and materials. The license number goes on all advertising, contracts and bids; uniforms and promotional items like pens and tape measures don't count as advertising. Carry your pocket license on the job.
- One firm (OAC 158:40-5-3). Each firm needs a full-time licensed electrical contractor who is an officer, partner or owner, and a contractor may represent only one electrical firm. Report a change of address or business relationship to CIB by mail within 30 days.
- Renewal. Licenses run one year and expire on the last day of your birth month. Contractor renewal is $200, or $300 more than 30 days late. You need 12 hours of continuing education every three years.
The CIB fine schedule (OAC 158:10)
| Violation | First | Second or later |
|---|---|---|
| Contracting without an active license, including advertising | $500 | $1,000 |
| Inactive contractor or journeyman contracting | $500 | $1,000 |
| Contracting with an expired bond, or with expired insurance | $500 | $1,000 |
| Loaning a license | $500 | $1,000 |
| Not displaying firm name and license number on vehicles | $500 | $1,000 |
| Not displaying the license number on advertising, contracts and bids | $70 | $190 |
Lien law: the deadlines
- Original contractor (42 O.S. 142): file a lien statement, verified by affidavit, with the county clerk within 4 months after the last labor or material.
- Subcontractors and suppliers (42 O.S. 143): file within 90 days.
- Pre-lien notice (42 O.S. 142.6): a claimant other than the original contractor sends it to the original contractor and the owner no later than 75 days after the last supply. It isn't required for claims under $10,000 or for residential projects of four or fewer units that no owner occupies, but a lien on an owner-occupied dwelling is invalid without it.
- Notice of the lien (42 O.S. 143.1): mailed to the owner by certified mail within 5 business days after filing.
- Suit (42 O.S. 149): the lien is not effective unless suit is brought within one year.
- Trust funds (42 O.S. 152-153): money a contractor receives under a building contract is held in trust for lienable claims and can't be used for anything else until they are paid.
Workers' compensation
- Prime contractor liability (85A O.S. 36): if a subcontractor fails to secure coverage, the prime contractor is liable for the sub's employees, unless an intermediate subcontractor has coverage. The prime can recover what it pays from the sub.
- Premium deductions (85A O.S. 9): an employer who deducts any part of the premium from an employee's pay commits a misdemeanor.
- Posting (85A O.S. 41): an insured employer keeps a notice of coverage posted conspicuously at the place of business, with the carrier's name and the policy expiration date.
- Failing to secure coverage (85A O.S. 40): a misdemeanor with a fine of up to $10,000.
A study plan built on the weights
- Get the NASCLA guide and tab it. Bidding, financial, project management, contracts and payroll are 35 of the 50 questions, and they live in that book.
- Start with bidding and estimating (10) and financial (8). Work markup, overhead and ratio problems until they are routine.
- Learn the Oklahoma licensing rules and the fine schedule. Print OAC 158:40 and 158:10, bind them as PSI requires, and tab the bond, insurance, lettering and fine sections.
- Learn the lien deadlines: 4 months, 90 days, 75 days, 5 business days and one year.
- Cover workers' compensation, labor and payroll taxes, then risk management.
- Practice at exam pace. 50 questions in 120 minutes is 2.4 minutes each.
Try our free sample test, or see the full exam prep. For who needs this exam, see Business and Law requirements, and for the day itself, exam day.
BC
Brandon Carlton
Founder, Fire Cert Academy
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