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. Florida Statute 489 requires licensed contractors to maintain what type of financial records to demonstrate solvency?

    Answer: Business financial statements sufficient to demonstrate fiscal integrity

    F.S. 489 requires contractors to maintain business financial records demonstrating fiscal integrity as a condition of licensure.

  2. A payment bond on a Florida public construction project protects:

    Answer: Subcontractors and suppliers who are not paid by the general contractor

    A payment bond guarantees that subcontractors and material suppliers will be paid even if the GC fails to pay them, protecting those without lien rights on public property.

  3. What is 'retainage' in a construction contract?

    Answer: A percentage of each progress payment withheld until project completion

    Retainage is a holdback (commonly 5–10%) from each progress payment, released upon substantial completion or final acceptance to ensure the contractor finishes the work.

  4. When estimating labor costs, 'labor burden' refers to:

    Answer: Additional employer costs such as FICA, insurance, and benefits on top of base wages

    Labor burden includes payroll taxes (FICA), workers' compensation insurance, unemployment insurance, health benefits, and similar employer-paid costs beyond base wages.

  5. A contractor has a backlog of $2.4 million and an average monthly revenue of $200,000. The contractor's backlog represents approximately how many months of work?

    Answer: 12 months

    $2,400,000 ÷ $200,000/month = 12 months of work in the backlog.

  6. Which of the following BEST describes 'value engineering' in the bidding phase?

    Answer: Proposing alternative materials or methods that maintain function while lowering cost

    Value engineering involves suggesting cost-saving alternatives (different materials, methods, or sequences) that achieve the same performance at lower cost.

  7. A contractor's 'Days Sales Outstanding' (DSO) measures:

    Answer: The average number of days it takes to collect payment after invoicing

    DSO = (Accounts Receivable ÷ Annual Revenue) × 365, indicating how quickly the contractor converts billed work into collected cash.