FCC Contract Administration & Project Management 5 — Questions and Answers
Question 1: When a Florida contractor abandons a project without just cause, which Chapter 489 disciplinary action is MOST likely?
- Mandatory mediation only
- License suspension or revocation (Correct answer)
- A $500 administrative fine only
- Automatic contractor bond forfeiture
Correct answer: License suspension or revocation
Abandonment without just cause is explicitly listed in §489.129 as grounds for suspension or revocation of a contractor's license.
Question 2: A liquidated damages clause is enforceable in Florida if the amount specified:
- Equals the contractor's total contract value
- Is a reasonable pre-estimate of actual damages, not a penalty (Correct answer)
- Is set at 10% of contract value by statute
- Is agreed upon after a delay has already occurred
Correct answer: Is a reasonable pre-estimate of actual damages, not a penalty
Florida courts enforce liquidated damages clauses when the amount reflects a reasonable pre-construction estimate of damages that would be difficult to calculate precisely.
Question 3: A contractor who discovers archaeological artifacts during excavation on a Florida project should FIRST:
- Remove and dispose of the artifacts to avoid project delays
- Notify the owner and stop work in the affected area pending required notifications (Correct answer)
- Cover the artifacts and continue work
- File a claim for additional compensation before notifying anyone
Correct answer: Notify the owner and stop work in the affected area pending required notifications
Florida and federal laws protecting historical and archaeological resources require work stoppage in the affected area and immediate notification to the owner and relevant authorities.
Question 4: In project scheduling, 'Total Float' is BEST defined as:
- The amount of time an activity can be delayed without delaying any successor activity
- The amount of time an activity can be delayed without delaying the project completion date (Correct answer)
- The difference between early start and late start only on critical activities
- The buffer time added to each activity for risk management
Correct answer: The amount of time an activity can be delayed without delaying the project completion date
Total float is the maximum time an activity can be delayed without pushing back the overall project completion date.
Question 5: Under a standard AIA Owner-Contractor agreement, Substantial Completion is defined as the stage when:
- All punch list items are complete and the certificate of occupancy is issued
- The work is sufficiently complete so the owner can occupy or use it for its intended purpose (Correct answer)
- The contractor has submitted the final pay application
- The project reaches 95% completion per the schedule of values
Correct answer: The work is sufficiently complete so the owner can occupy or use it for its intended purpose
AIA defines Substantial Completion as the point when the Work is sufficiently complete for the Owner to occupy or utilize it for its intended purpose, regardless of remaining punch list items.
Question 6: A Florida contractor who acts as a qualifying agent for a company but has no financial or management control of the business faces which specific risk?
- The qualifier bears no disciplinary risk if the company violates the law
- The qualifier can be held personally liable for the company's construction violations (Correct answer)
- The qualifier's license is automatically suspended when the company is fined
- Florida law prohibits this arrangement entirely
Correct answer: The qualifier can be held personally liable for the company's construction violations
Under §489.119, a qualifying agent is personally responsible for the company's compliance; lack of day-to-day control is not a defense to disciplinary action.
Question 7: The primary purpose of a Contractor's Sworn Statement (or Contractor's Final Affidavit) in Florida is to:
- Certify that all subcontractors have been bonded
- Attest that all lienors have been paid or will be paid from the final disbursement (Correct answer)
- Confirm that the building passed all required inspections
- Release the owner from liability for latent defects
Correct answer: Attest that all lienors have been paid or will be paid from the final disbursement
A Contractor's Final Affidavit under §713.06 swears that all parties who furnished labor or materials have been paid, protecting the owner before final payment is released.
FCC Contract Administration & Project Management 5
When a Florida contractor abandons a project without just cause, which Chapter 489 disciplinary action is MOST likely?