Practice Test Geeks(FCC) Florida Certified Contractors Practice Test
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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

  1. Under Florida's public procurement rules, a 'sealed bid' process requires that all bids be:

    Answer: Opened publicly at the date and time specified in the solicitation

    Florida public bid law requires sealed bids to be opened publicly at the designated time to ensure transparency and fairness.

  2. Which document establishes the scope, schedule, and compensation basis agreed upon between a contractor and owner before work begins?

    Answer: Prime Contract

    The prime (or general) contract is the legally binding agreement that defines scope, price, schedule, and rights between the owner and contractor.

  3. A contractor is calculating break-even volume. Fixed annual costs are $300,000 and the contribution margin ratio is 30%. What annual revenue is needed to break even?

    Answer: $1,000,000

    Break-even revenue = Fixed costs ÷ Contribution margin ratio = $300,000 ÷ 0.30 = $1,000,000.

  4. What is the primary purpose of a 'Notice of Commencement' in Florida construction projects?

    Answer: To establish the project in public records and protect lien rights

    Florida's Notice of Commencement (F.S. 713.13) is recorded in public records to identify the project, owner, and lender, forming the basis for the construction lien law framework.

  5. When a contractor uses the 'percentage of completion' accounting method, revenue is recognized:

    Answer: Proportionally as work is performed based on costs incurred

    The percentage-of-completion method recognizes revenue and profit in proportion to the stage of project completion, typically measured by costs incurred.

  6. A general contractor receives three subcontractor bids for electrical work: $80,000, $95,000, and $62,000. The $62,000 bid appears unusually low. What is the BEST practice?

    Answer: Investigate the low bid for missing scope before relying on it

    An unusually low sub-bid may indicate missing scope, errors, or future claims; the GC should verify the sub's scope matches before incorporating it.

  7. What does 'Gross Profit Margin' measure in a construction company's financial performance?

    Answer: Revenue minus direct project costs, expressed as a percentage of revenue

    Gross profit margin = (Revenue − Direct job costs) ÷ Revenue × 100, showing how much revenue remains after direct costs to cover overhead and profit.