FCC Estimating, Bidding & Financial Management 2

Question 1

A contractor submits a bid and later discovers a material error in the estimate. Under Florida law, what is the contractor's BEST course of action?

Accepted Answer

Notify the owner immediately and request bid withdrawal before award

Answer

Florida courts generally allow bid withdrawal for material, clerical errors if the contractor notifies the owner promptly before contract award.

Question 2

Which cost category includes project manager salary, office rent, and company vehicles when allocated across multiple projects?

Accepted Answer

General overhead costs

Answer

General overhead (indirect costs) covers expenses not tied to a single project but necessary to run the business, allocated proportionally.

Question 3

A contractor's bid bond is typically set at what percentage of the total bid amount?

Accepted Answer

5–10%

Answer

Bid bonds on public projects in Florida are commonly required at 5–10% of the bid to guarantee the bidder will enter the contract if selected.

Question 4

What does the term 'unit price contract' mean in construction bidding?

Accepted Answer

Payment based on actual quantities of work at pre-agreed prices per unit

Answer

Unit price contracts establish a price for each measurable unit of work; the total is determined by multiplying unit prices by actual quantities installed.

Question 5

When preparing a Schedule of Values for a project, which principle should govern how line items are broken down?

Accepted Answer

Reflect the actual cost distribution of the work

Answer

A Schedule of Values must honestly represent the proportional cost of each work element to support accurate progress billing.

(FCC) Florida Certified Contractors Practice Test

(FCC) Florida Certified Contractors Practice Test

FCC Estimating, Bidding & Financial Management 2