FCC Estimating, Bidding & Financial Management 3

Question 1

What is the purpose of a 'contingency' line item in a construction estimate?

Accepted Answer

To account for unforeseen conditions and scope uncertainties

Answer

A contingency reserve covers unpredictable costs such as unknown site conditions, minor scope gaps, or estimating inaccuracies.

Question 2

On a cost-plus-fee contract, the contractor's fee is BEST described as:

Accepted Answer

Compensation for profit and sometimes overhead above direct project costs

Answer

The fee in a cost-plus contract represents the contractor's profit (and sometimes overhead) earned above direct reimbursable project costs.

Question 3

Which financial statement shows a contractor's assets, liabilities, and net worth at a specific point in time?

Accepted Answer

Balance sheet

Answer

The balance sheet (statement of financial position) presents assets, liabilities, and equity as of a single date.

Question 4

A contractor's work-in-progress (WIP) schedule shows 'overbilling.' This means the contractor has:

Accepted Answer

Billed more than the value of work actually completed

Answer

Overbilling (billings in excess of costs) occurs when the contractor has invoiced the owner for more than the percentage of work actually performed.

Question 5

Florida's Prompt Payment Act requires that a general contractor pay a subcontractor within how many days of receiving payment from the owner?

Accepted Answer

10 days

Answer

Florida Statute 715.12 (Prompt Payment Act) requires general contractors to pay subcontractors within 10 days of receiving owner payment for that work.

(FCC) Florida Certified Contractors Practice Test

(FCC) Florida Certified Contractors Practice Test

FCC Estimating, Bidding & Financial Management 3