FCC Estimating, Bidding & Financial Management 4

Question 1

Under Florida's public procurement rules, a 'sealed bid' process requires that all bids be:

Accepted Answer

Opened publicly at the date and time specified in the solicitation

Answer

Florida public bid law requires sealed bids to be opened publicly at the designated time to ensure transparency and fairness.

Question 2

Which document establishes the scope, schedule, and compensation basis agreed upon between a contractor and owner before work begins?

Accepted Answer

Prime Contract

Answer

The prime (or general) contract is the legally binding agreement that defines scope, price, schedule, and rights between the owner and contractor.

Question 3

A contractor is calculating break-even volume. Fixed annual costs are $300,000 and the contribution margin ratio is 30%. What annual revenue is needed to break even?

Accepted Answer

$1,000,000

Answer

Break-even revenue = Fixed costs ÷ Contribution margin ratio = $300,000 ÷ 0.30 = $1,000,000.

Question 4

What is the primary purpose of a 'Notice of Commencement' in Florida construction projects?

Accepted Answer

To establish the project in public records and protect lien rights

Answer

Florida's Notice of Commencement (F.S. 713.13) is recorded in public records to identify the project, owner, and lender, forming the basis for the construction lien law framework.

Question 5

When a contractor uses the 'percentage of completion' accounting method, revenue is recognized:

Accepted Answer

Proportionally as work is performed based on costs incurred

Answer

The percentage-of-completion method recognizes revenue and profit in proportion to the stage of project completion, typically measured by costs incurred.

(FCC) Florida Certified Contractors Practice Test

(FCC) Florida Certified Contractors Practice Test

FCC Estimating, Bidding & Financial Management 4