Estimating, Bidding & Financial Management Flashcards
7 cards from real FCC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Estimating, Bidding & Financial Management flashcards as text
What is the purpose of a 'contingency' line item in a construction estimate?
Answer: To account for unforeseen conditions and scope uncertainties
A contingency reserve covers unpredictable costs such as unknown site conditions, minor scope gaps, or estimating inaccuracies.
On a cost-plus-fee contract, the contractor's fee is BEST described as:
Answer: Compensation for profit and sometimes overhead above direct project costs
The fee in a cost-plus contract represents the contractor's profit (and sometimes overhead) earned above direct reimbursable project costs.
Which financial statement shows a contractor's assets, liabilities, and net worth at a specific point in time?
Answer: Balance sheet
The balance sheet (statement of financial position) presents assets, liabilities, and equity as of a single date.
A contractor's work-in-progress (WIP) schedule shows 'overbilling.' This means the contractor has:
Answer: Billed more than the value of work actually completed
Overbilling (billings in excess of costs) occurs when the contractor has invoiced the owner for more than the percentage of work actually performed.
Florida's Prompt Payment Act requires that a general contractor pay a subcontractor within how many days of receiving payment from the owner?
Answer: 10 days
Florida Statute 715.12 (Prompt Payment Act) requires general contractors to pay subcontractors within 10 days of receiving owner payment for that work.
What is 'quantity takeoff' in the estimating process?
Answer: Measuring and listing all materials and work items from project drawings
Quantity takeoff is the systematic measurement of all materials, labor hours, and work items directly from construction documents.
A contractor's current ratio is calculated as current assets divided by current liabilities. A ratio below 1.0 indicates:
Answer: The contractor may have difficulty meeting short-term obligations
A current ratio below 1.0 means current liabilities exceed current assets, signaling potential liquidity problems in the near term.