FCC Contract Administration & Project Management 2 — Questions and Answers
Question 1: Under Florida law, what is the maximum period a contractor can be held to a fixed-price contract before having the right to request a price adjustment due to material cost escalation?
- 30 days
- 60 days
- 90 days
- The contract period itself governs unless a specific escalation clause exists (Correct answer)
Correct answer: The contract period itself governs unless a specific escalation clause exists
Florida statutes do not set a universal escalation trigger period; the contract terms and any express escalation clause control the parties' rights.
Question 2: A subcontractor submits a claim for additional compensation due to differing site conditions. Which document should the general contractor review FIRST to evaluate the claim?
- The project schedule baseline
- The original geotechnical report (Correct answer)
- The payment bond
- The notice of commencement
Correct answer: The original geotechnical report
The geotechnical report establishes the baseline subsurface conditions that the contractor relied upon at bid, making it the primary reference for a differing site conditions claim.
Question 3: Florida Statute §713 (Construction Lien Law) requires a contractor to record a Claim of Lien within how many days after the last furnishing of labor, services, or materials?
- 45 days
- 60 days
- 90 days (Correct answer)
- 120 days
Correct answer: 90 days
Under §713.08, a Claim of Lien must be recorded within 90 days after the claimant's last furnishing of labor, services, or materials.
Question 4: When a Florida contractor receives a Notice to Owner from a materialman, what is the primary obligation triggered for the contractor?
- File a Notice of Commencement amendment
- Include the lienor in all future joint checks
- Track payments to ensure the lienor is paid before final disbursement (Correct answer)
- Provide the lienor with a payment bond copy
Correct answer: Track payments to ensure the lienor is paid before final disbursement
A Notice to Owner alerts the contractor that a lienor has preserved lien rights, obligating the contractor to ensure that party is paid to protect the owner from double payment claims.
Question 5: A project owner issues a unilateral change order reducing the contract scope. Under standard contract terms, the contractor's BEST immediate response is to:
- Stop work on the deleted scope immediately
- Perform the reduced scope and reserve rights in writing (Correct answer)
- Terminate the contract for owner breach
- File a lien on the property
Correct answer: Perform the reduced scope and reserve rights in writing
Continuing work under protest while formally reserving rights in writing protects the contractor's claim without breaching the contract.
Question 6: Which scheduling method explicitly identifies ALL activities that, if delayed, will delay the project completion date?
- Resource-leveling analysis
- Critical Path Method (CPM) (Correct answer)
- Monte Carlo simulation
- Gantt bar chart
Correct answer: Critical Path Method (CPM)
CPM identifies the longest sequence of dependent activities (the critical path), and any delay to a critical activity directly extends project completion.
Question 7: A Florida licensed contractor is required to disclose a known latent defect in a structure to a prospective buyer. Failure to disclose can result in:
- Only a civil lawsuit
- License revocation or suspension under Chapter 489 (Correct answer)
- A mandatory 90-day cure period
- Automatic contract rescission only
Correct answer: License revocation or suspension under Chapter 489
Under Chapter 489, concealing a known material defect is grounds for disciplinary action by the Florida Construction Industry Licensing Board, including revocation.
FCC Contract Administration & Project Management 2
Under Florida law, what is the maximum period a contractor can be held to a fixed-price contract before having the right to request a price adjustment due to material cost escalation?