102 Questions Florida Contractors Manual CA 4102023.pdf

102 Practice Questions for the 2021 Florida Contractors Manual updated 4/10/23 CA Chapter 1 ll 1. A properly regist...

102 Practice Questions for the 2021 Florida Contractors Manual updated 4/10/23 CA Chapter 1 ll 1. A properly registered fictitious name is valid for. te A. 1 year B. 2 years C. 3 years Es D. 5 years 2. Which of the following would have jurisdiction over dredging or excavation of navigable waters and wetlands? A. U.S. Dept. of the Interior B. C. D. Florida Dept. of State Florida Dept. of Transportation U.S Army Corps of Engineers ob R 3. The name of the form which is used to apply for sales tax is. A. W2 B. DR-1 ht C. S1 D. W4 ig 4. Which of the following is NOT true about a fictitious name registration? A. Valid for 5 years. yr B. The fictitious name must be advertised at least one time. C. If a change of ownership occurs, the owner(s) of record must file a cancellation and registration within 45 days of filing, D. Fictitious name registration must be renewed between July 1 and December 31 in op the expiration year. 5. The duties of making sure results do not differ from those originally planned is an example of a ______________responsibility of the business manager. C A. Directing B. Controlling C. Assigning D. Standardizing 6. Which of the following is a correct example of a required taxes form in your business? A. Application for employer identification number SS-5 B. Employers annual unemployment (fed.) tax return - form 941. C. Employers quarterly tax return - form 942 D. Unemployment compensation tax return - UCT-6S 7. Which of the following is not a characteristic of an S corporation? A. Only individual or estates can be shareholder ll B. The corporation cannot have any non-residential alien shareholders te C. Dividends, interest, royalties, can account for more than 20 percent revenues D. 20 percent or more of its revenue must be domestically generated 8. A Partnership will be dissolved if which of the following applies? Es A. Unlawful Activity B. Failing to have a primary qualifying agent C. A court decree under the partnership act D. A and C 9. ob Which of the following is not a characteristic about a General and Limited Partnership? A. In a general partner each partner is fully liable as co-owners, limited partners are not. R B. A limited partner is more of a passive investor, a general partner is not. C. A limited partner can be involved in day-to-day activity in a limited partnership. D. The general partner of a limited partnership is liable for his investment. ht 10. Which of the following is an advantage of owning a corporation? A. Continuity of existence. ig B. Lack of centralized control. C. sharing of ideas and management responsibility. D. Easier to create. yr 11. Three partners, Noah, Evan & Steven form a limited partnership. Noah invests $30,000; Steven invests $20,000 and Evan invests $15,000. In addition, Noah performs specific management functions for op which he is paid $5,000 from the partnership proceeds. If the partnership earns $244,000, how much will Noah receive? A. Less than $70,000 B. Between $70,000 - $90,000 C C. Between $90,000- $110,000 D. More than $110,000  Chapter 2 1. Unlicensed practice of a profession is punishable by an administrative penalty not to exceed _______. A. $500 B. $1,000 C. $5,000 D. $12,500 ll 2. Which of the following applies to a qualifying agent of corporation? te A. He is only qualified to act for the business during normal working hours B. He is qualified to act for the corporation in all matters connected with its construction and financial aspect of the business. Es C. He does have authority to supervise in all areas of the company's construction D. None of the above 3. If a contractor is disciplined by the board and is the qualifying agent for a business organization and the violation was performed in connection with a construction project undertaken by that business organization, the board may impose an additional administrative fine not to exceed against the action. A. $500 ob business organization or against any partner, officer, director, trustee, or member if such person participated in the violation or knew or should have known of the violation and failed to take corrective R B. $1,000 C. $5,000 D. $10,000 ht 4. Failure of a licensee to renew before a license expires shall cause the license to become _____. A. delinquent ig B. inactive C. void D. inactive until payment of a late fee and completion an additional 4 hours of continuing education yr 5. The $5.00 fee imposed upon initial licensure and subsequent renewals is used. A. to cover administrative costs op B. to offset inflation and increased salaries C. to combat unlicensed activity D. as a fee to help fund investigative background checks 6. An active certified residential contractor is eligible to take the general contractors’ examination if he C possesses a minimum of years of proven experience in the classification in which he is certified. A. 1 B. 2 C. 3 D. 4 7. If an incomplete contract exists at the time of death of a contractor, the contract may be completed by any person, though not certified or registered, with the board's approval. That person must notify the board within ________ days after the death of the contractor, of his/her name and address. A. 15 days B. 30 days C. 45 days D. 60 days ll 8. An active certified air-conditioning Class B contractor is eligible to take the air-conditioning Class A contactors’ examination if he possesses a minimum of years of proven experience in the te classification in which he is certified. A. 1 B. 2 Es C. 3 D. 4 9. For the purposes of this part, the term “advertisement” does not include business stationery or any promotional novelties such as balloons, pencils, , or articles of clothing. A. B. C. D. trinkets coupons business proposals business cards ob R 10. According to the Florida Statues, Chapter 489, a contractor was found guilty of allowing their certificate to be used by uncertified persons with intent to evade the provisions of Chapter 489. The Construction Industry Licensing Board may revoke the certificate of the contractor, require financial restitution to a ht consumer, and impose an administrative maximum fine of _________. A. $5,000 B. $5,000 or assess costs associated with investigation and prosecution ig C. $10,000 D. $10,000 or assess costs associated with investigation and prosecution yr 11. What is the maximum damages in which as consumer (non-employee) is entitled due to the negligence of a non- licensed contractor: op A. 2 times damages B. 2 times damages + legal fees C. 3 times damages D. 3 times damages + legal fees C  Chapter 3 1. A Contractor wants to borrow 50,000 for 1 year and the Bank will provide the funding as a Discounted Loan at 2%. What is the amount the Contract receives at loan closing? A. $50,000, discount due when paid B. $48,000, discounted immediately C. $52,000, full amount due at maturity D. $50,000, contract pays for $2,000 at closing ll 2. Under the completed contract method, the contractor may realize the profit: te A. When the bid is accepted by the owner B. When the contract is 50% complete Es C. When the project is nearly complete D. When the owner signs off on the final release 3. The _______ratio is determined by adding cash, accounts receivable and marketable securities together and dividing by current liabilities. A. B. C. D. Quick Current Leverage Index ob R 4. Which of the following is the type of contract which provides payments to the contractor on the basis of direct labor hours at fixed hourly rates and which may include the cost of materials or other specified costs? ht A. Unit price B. Cost plus C. Time and material ig D. Fixed price 5. According to the Contractor’s Manual in the completed contracts method of accounting, a contract should be considered complete, if it has reached _________ percentage or more? yr A. 100% B. 98% op C. 97% D. 95% 6. is the recording of business and financial data in a prescribed manner. C A. Tax Preparation B. Accounting C. Bookkeeping D. All of the above 7. According to the Florida Contractors Manual 2021, categories on the income statement do not include ___________. A. Chart of accounts B. Revenues C. Expenses D. Income 8. The act of increasing the account balance of an account that has a credit balance is called _______. ll A. Debiting te B. Reducing C. Crediting D. Increasing Es 9. Which of the following is NOT a correct expression of the relationship between owner's equity, total assets, and total liabilities? A. Assets = Liabilities + Equity B. Equity = Assets - Liabilities C. Equity = Assets + Liabilities 10. D. Liabilities - Equity = Assets ob What is the "look back" period for determining the deposit schedule for taxes? R A. Last 1 quarter B. Last 2 quarters C. Last 3 quarters D. Last 4 quarters ht ig yr op C  Chapter 4 1. Which of the following is the type of bond stated if the contractor has been paid, it provides the Developer a lien free project? A. Performance Bond B. Fidelity bond C. Comprehensive theft ll D. Payment Bond-Conditional te 2. What type of extended insurance can be purchased with the Builder’s risk? A. Materials in transit or at temporary storage facility Es B. Subcontractors on a jobsite C. Materials while in transit only D. Employees of subcontractor 3. A normally purchased Builder's Risk policy covers all but which of the following? A. B. C. D. Materials Dwelling Structure constructed Storage facility ob R 4. A Contractor has been paid $71,837.00 on a $1,400,325.00 contract total cost. Assuming a 10% retainage, what is the percentage of completion of this project? A. 0.57% ht B. 5.7% C. 0.51% D. 5.1% ig 5. Which of the following is not an example of an exculpatory clause? A. The owner is to indemnify the contractor. yr B. The contractor is to hold the owner harmless. C. The contractor must come to the defense of the owner. D. The owner must not interfere with the contractor's schedule. op 6. Which of the following financial statements would most likely be necessary if you were certifying the financial condition of your company for 3rd party investors? A. Cash C B. Reviewed C. Compiled D. Audited 7. What is the maximum bond amount for an SBA guaranty program? A. $6,500,000 B. $1,500,000 C. $1,250,000 D. $1,000,000 8. Under a performance bond on a subcontract, any suit must be instituted within year(s) of the date of substantial completion. ll A. 1 te B. 2 C. 3 D. 4 Es 9. You have purchased $120,000 worth of builder's risk (property) insurance on a building worth $200,000 with an 80% co-insurance clause. A fire loss causes $20,000. Disregarding any deductible, what amount will the insurance company pay? A. $20,000 B. $15,000 10. C. D. $12,000 $19,000 ob Your company is assessing its bonding capacity. You have $100,000 Cash in the bank, $32,000 in R Accounts Receivable and $450,000 in Accrued Earned Income Receivable. Your bookkeeper states you also have $450,000 in Current Liabilities. What would be your likely maximum bond limit? A $1,000,000 ht B. $320,000 C. $1,320,000 D. $5,820,000 ig yr op C  Chapter 5 1. A laborer begins employment with your company in September of 1990. He quits in July of 1991. The I- 9 form must be retained as a record until which of the following dates? A. September 1991 B. September 1992 C. September 1993 ll D. September 1994 te 2. Failure to file timely Florida Unemployment Compensation Reports will result in a penalty charge of per month or fraction of month that the report is delinquent. Es A. $25 B. $50 C. $75 D. $100 3. According to the Americans with Disabilities Act, pre-employment medical examinations are: A. B. C. D. mandatory Unlimited. Required. Prohibited ob R 4. If an employee earns $10/hr. and works a 50-hour week, what is the total payment for that week? A. $450 ht B. $500 C. $550 D. $600 ig 5. What is the penalty for false statement of unemployment compensation laws? A. $750 yr B. $950 C. $1000 D. $5000 op 6. If an employee refuses to use safety devices in a workplace, by how many quarter his or her benefits will be reduced? A. 1 quarter C B. 3 quarter C. 4 quarter D. None of the above 7. What is the maximum amount that can be garnished from an employee's wages according to the Consumer Credit Protection Act? A. 25% of weekly disposable earnings B. The amount by which weekly disposable earnings exceed thirty times the minimum wage C. The greater of A or B D. The lesser of A or B 8. Which of the following is NOT true about a 16-year-old working in Florida? ll A. Such a minor may NOT work in a field office. te B. Such a minor may NOT work on scaffolding. C. Such a minor may NOT work more than 6 consecutive days in one school week. D. Such a minor may NOT work after 11 :00 pm on a school night. Es 9. A charge of age discrimination must be brought to the EEOC no later than: A. 300 days after the alleged discrimination B. 30 days after termination of the state administrative proceeding C. The LATER of A or B D. The EARLIER of A or B 10. ob A contractor who knowingly makes false statements and does not comply with Unemployment Compensation Law, may, upon conviction, be punished by a fine of not more than imprisonment for not more than. or by R A. $500.00 - 1 year B. $1,000.00 - 1 year C. $1,000.00 - 3 years ht D. $5,000.00 - 5 years ig yr op C  Chapter 6 1. If you, as a contractor, sublet any part of your contract work to a sub-contractor who is not covered by Workers' Compensation and one of his employees is injured on the job. A. The sub-contractor must pay from his personal funds. B. You are liable for 1/3 the required compensation. C. You are liable for payment of compensation to that employee. ll D. The employee can receive no compensation. te 2. An installment of Workers' Compensation is due on July 1st, but payment is delayed until July 10th. A should be added to the payment. Es A. 12% or $5.00, whichever is greater B. 2% C. 10% or $5.00, whichever is greater D. A and B 3. An employee refuses to observe safety rules and use safety equipment His Workers' Compensation. A. B. C. D. Will not be affected Will be reduced 25% Will be reduced 50% ob Will not be paid, because he contributes to an accident R 4. In case of temporary partial disability, compensation shall be equal to percent of the difference between of the employee's average weekly wage and the pay the employee is able to earn. ht A. 90 percent B. 80 percent C. 20 percent ig D. 50 percent 5. An employer who has secured compensation under the provisions of this chapter shall _______. yr A. Keep posted in a conspicuous place printed notices stating that the employer has secured the payment of compensation. B. Deliver a typed or printed certificate of insurance to each employee. op C. Maintain proof of compensation insurance in an insurance compensation file. D. Does not need to provide any of the above. 6. No compensation shall be payable if an injury was caused primarily by. C A. Intoxication of the employee. B. The employee being under the influence of a narcotic. C. By the willful intention of the employee to the injure or kill himself D. All of the above. 7. Except as provided in section 440.12 (1) and 440.14 (3), a total but temporary disability payment shall not be made longer than weeks. A. 14 B. 250 C. 104 D. 500 8. A subcontractor who knowingly presents false information to the existence of coverage when there is none, is committing what level of crime? ll A. First degree felony te B. Misdemeanor C. Second degree felony D. Third degree felony Es 9. All employer with one or more employee is required to have which of the following ________. A. General Liability Insurance B. Safety program C. Workers Compensation D. None of the above 10. ob According to "The Florida Worker's Compensation Law," a determination of benefits will be based on a calculation involving the last weeks of employment. R A. 3 weeks B. 10 weeks C. 13 weeks D. 52 weeks ht ig yr op C  Chapter 7 1. Which grade of manila rope is of the highest quality? A. Synthetic fiber rope B. Bolt rope C. Natural fiber rope D. Yacht rope ll 2. All of the following must follow the OSHA standards except : te A. religious establishments B. general contractor with one employee Es C. landscape contractors D. equipment rental businesses 3. The failure to abate penalty may be assessed for a maximum of _____days by the OSHA area office. A. 7 4. B. C. D. 14 30 60 ob Manilla rope is twisted in a _________direction. R A. right hand B. left hand C. patterned ht D. torqued 5. OSHA regulations require that injury and illness records be retained in each establishment for ig calendar year(s) following the end of the year to which they relate. A. 1 B. 3 yr C. 5 D. 7 op 6. Within how many days must a recordable incident be entered in the log? A. 3 days of its occurrence B. Immediately C. 7 days of learning of its occurrence C D. 21 days of learning of its occurrence 7. What does OSHA stand for _____________. A. Outdoors Safety and Hygiene Administration B. Occupational Safety and Health Association C. Occupational Safety and Health Act D. Occupational Services for the Handicapped Act 8. According to the CM and OSHA, you must report the accidents resulting in a loss of eyes or amputation within after learning of the incident. ll A. 24 hours te B. 72 hours C. 8 hours D. No more than 5 days Es 9. According to public law 91-596 and 29 CFR 1904 OSHA’s recordkeeping rule, employer must keep the information in the form 301 for how many years__________. A. 7 years B. 3 years C. 5 years 10. D. None of the above ob The maximum civil penalties for willful or repeated violation shall not exceed which of the following? R A 13,494 B. 12,471 C. 134,494 D. 134,937 ht ig yr op C  CHAPTER 8 1. When does common law indemnity apply? A. When the benefit party is guilty B. When the benefit party is not guilty C. When the benefit party nolo contendere D. When the benefit party is absent ll 2. Which of the following may or may not contain a cost-plus contract? te A. Direct cost B. Margin of profit Es C. Guaranteed maximum price D. Selling expenses 3. The payment clause may provide that if payment is , then interest will accrue at either stated rate or the highest rate allowable by law: A. B. C. D. Early Accrue Tardy All of the above ob R 4. According to the Florida lien law, in a contract for greater than $2500 between an owner and a contractor for improvement to single or multiple up to four dwelling units, the contract must contain which of the following? ht A. The Subcontractors name labor price B. A warning that is 12-point Capitalize bold face type on the front page C. The attorneys name who wrote the contract ig D. All of the above 5. Any claims for construction defects are subject to the notice and cure provision of which chapter? yr A. Ch. 489 Notice of Claim B. Ch. 455 Notice of Claim C. Ch. 558 Notice of Claim op D. Ch. 713 Notice of Claim 6. According to the Florida Contractors Manual, which of the following are not one of the three essential items of a construction contract? C A. what is to be performed or built B. when it will be built C. how much and when payment will be made D. name of consumer 7. Which of the following contracts puts the contractor at the biggest risk? A. Cost plus B. Construction Management C. Fixed price D. Design/Build 8. Which of the following is not an implied term? ll A. Payment will be made at the conclusion of the work B. Lien rights may be waived in advance of performing the work te C. The contractor must furnish a contractor’s final affidavit addressing payment to subcontractors and suppliers before being entitled to final payment. D. No party will interfere with or hinder the performance of any other party, but will cooperate in good faith Es 9. Which of the following is true about punitive damages. A. Punitive damages not costly to litigate B. Punitive damages are not in accordance with FS 455 C. Punitive damages are not recoverable for a breach of contract 10. D. Both B & C ob An action by or against the Florida DOT Must be brought in how many days after final acceptance of work? R A. 820 B. 30 C. 10 ht D. 280 ig yr op C  CHAPTER 9 1. A not in Privity subcontractor filed a notice to owner on February 2nd, on a job that he had begun on February 1st. If this subcontractor files a lien on April 3rd, how many days would he have to enforce the lien once the court clerk had certified and served a contest of lien? A. 30 B. 45 ll C. 60 D. 365 te 2. Which document is filed as part of the permit process that lists the owner contact information and establishes the legal parameters for subcontractor claims against the project? Es A. Notice to Owner B. Application for Permit C. Bond D. Notice of Commencement 3. A. B. ob Which of the following is one way an owner can minimize the risk of having a lien filed on his or her property by non-privity entities? Have the contractor submit an affidavit that all persons are paid Stay active on the project and talk to the subcontractors R C. Have the contractor obtain a performance bond D. Have the contractor obtain a payment bond 4. Any person who willfully files a fraudulent lien, is committing a felony of what degree? ht A. First degree B. No felony ig C. Third degree D. Second degree 5. How many claims must be filed by a contractor for recovery of funds for materials and labor? yr A. Several B. Only one op C. Two claims D. none of the above 6. How long do you have to provide notice to the owner in you are not in privity? A. 90 days C B. 60 days C. 45 days D. 35 days 7. If a construction job is worth more than $2,500, and there is a construction loan covering the work, who is responsible for recording the notice of commencement at the public record? A. The contractor B. The lending institution C. The owner or the contractor D. A or C 8. After signing an AIA 401 contract, a subcontractor who was not in privity began working on a project. ll The official start date of the subcontractor’s work was February 20, 2006. The notice of commencement was filed on January 2, 2006. If the subcontractor is forced to file a lien in accordance with F.S. 713, te how many days does the lien have to be recorded from the day of last work? A. 3 B. 15 Es C. 45 A. 90 9. Which of the following is part of the notice of termination? A. Attorney name B. C. D. the amended notice Bonds Statement of the date of termination ob R 10. Which contract when signed between the contractor and owner, only the contractor would have a lien right? A. Contract for more than $4000 ht B. Contract for $2500 or less C. Contract for $3500 D. None of the above ig yr op C  Chapter 10 1. A short-term project schedule is a detailed explanation of the next two weeks of construction activities and should be developed and/or reviewed by all of the following except: A. superintendent B. architect C. subcontractors ll D. project engineer te 2. According to the Contractors Manual the project schedule should be jointly prepared with. A. Architect and Engineer Es B. Owner and Architect C. Project Manager and contractor D. Material and equipment 3. The responsibility for the timing and coordinating of subcontractor work and material delivery should rest with which of the following? A. B. C. D. The project manager Field engineer Field superintendent Architect ob R 4. General Contractors generally subcontract percent of the work? A. 30% ht B. 40% C. 50% D. 60% ig 5. If the paint contains more than ppm of lead it must be handled as hazardous waste. A. 7.5 mg/l yr B. 5.0 mg/l C. 15 mg/l D. 20 mg/l op 6. Which one of the following is not a Superintendent’s task? A. Conduct regular progress meetings with owner/architect B. Prepare and control payroll functions C C. Conduct safety meetings and prepare minutes D. Field procurement 7. The estimator should not make the mistake of using which of the following, when determining a production schedule? A. Manufacturer B. Safety C. Speed limit D. Weather conditions 8. Field supervisors’ effect on Direct Construction Cost is. ll A. 75% to 95% te B. 50% to 60% C. 20% to 25% D. 85% to 95% Es 9. Which of the following is not usually listed as a supplementary general condition? A. jobsite office B. electrical service for temporary light C. job-site phone D. home office rent 10. ob is the process of determining the work or project requirements and developing the means and methods for the construction of the work or project. R A. Projecting B. Project management C. Planning ht D. Scheduling ig yr op C  102 practice answers Chapter 1 1. D 1-14 2. D 1-24 ll 3. B 1-15 te 4. C 1-14 5. B 1-20 6. D 1-26 Es 7. C 1-12 8. D 1-21, 1-22 9. C 1-10 10. A 1-11 11. D 1-10 Chapter 2 1. 2. C B 455.228(1) 489.1195 2-51 2-78 or 2-22 ob R 3. C 489.129 2-84 4. A 455.271(5) 2-54 5. C 455.2281 2-51-52 6. D 489.111(4)(c) 2-68 ht 7. B 489.121 2-78 8. A 489.111 5(c) 2-68 ig 9. A 489.119 (5)(d) 2-77 10. D 489.129(1) 2-83 11. D 2-29 yr Chapter 3 1. B 3-74 op 2. C 3-80 3. A 3-89 4. C 3-79 5. B 3-80 C 6. C 3-10 7. A 3-30 8. C 3-21 9. C 3-12 10. D 3-180 Chapter 4 1. D 4-14 2. A 4-7 3. B 4-7 ll 4. B 3-79 Gross Pay= $71,837/.90 = $79,812.00 % of Completion - $79,812/ $1,400,325 = 5.70% te 5. D 4-9 6. D 4-16 7. A 4-18 Es 8. B 4-56 9. B 4-6 Percentage Insured = $120,000/200,000 = 60.00% Should be 80% coinsurance of $160,000 / $200,000 = 80% Payment - 60/80 = 75% 75% of $20,000 = $15,000.00 10. C. 4-17 ob $1,320,000 (Net quick times 10)-($100,000 + $32,000) X 10 Chapter 5 R 1 C 5-58 2. A 5-53 3. D 5-42 ht 4. C 5-21 5. D. 5-53 6. A 5-54 ig 7. D 5-47 8. A 5-31 9. D 5-37 yr 10. D 5-53 Chapter 6 op 1 C 6-78, 440.10 (1)(b) 2. A 6-117, 440.20(8)(a) 3. B 6-75, 440.09(5) 4. B 6-108, 440.15(4)(a) C 5. A 6-139, 440.40 6. D 6-75 & 6-76; 440.09(7)(b) 7. C 6-106, 440.15(2)(a) 8. D 6-6 9. C 6-5 10. C 6-104, 440.14 Chapter 7 1. D 7-50 2. A 7-7 3. C 7-33 ll 4. A 7-50 5. C 7-16 te 6. C 7-6 7. C 7-6 8. A 7-28 Es 9. C 7-14 10. D 7-31 Chapter 8 1. 2. 3. 4. B 8-16 C 8-10 C 8-12 B 8-22 ob R 5. C 8-18 6. D 8-6 7. C 8-7 8. B 8-9 ht 9. C 8-25 10. A 8-23 ig Chapter 9 1. D 9-28, 713.08(5) yr 2. D 9-12, 713.07(2) 3. D 9-70, 713.02(6) 4. C 9-92, 713.31(3) op 5. B 9-76, 713.09 6. C 9-22, 713.02(2)(a) 7. B 9-12, 713.13(7) 8. D 9-28, 713.08(5) C 9. D 9-57 713.132(C) 10. B 9-11, 713.02(5) Chapter 10 1. B 10-64 2. D 10-63 3. C 10-54 ll 4. C 10-54 5. B 10-97 te 6. A 10-72 7. C 10-27 8. D 10-71 Es 9. D 10-11 10. C 10-12 ob R ht ig yr op C C op yr ig ht R ob Es te ll C op yr ig ht R ob Es te ll