Florida Certified General Contractor (CGC) Exam — Questions and Answers

Question 1: How often must a Florida General Contractor renew their license?

Only once
Every 5 years
Every 2 years (Correct answer)
Annually

Correct answer: Every 2 years

In Florida, a General Contractor's license must be renewed every two years. This renewal process typically involves completing continuing education requirements to ensure contractors remain updated on industry standards, safety regulations, and building codes. Timely renewal is essential to maintain legal authorization to operate.

Question 2: What does the acronym 'SDS' stand for in workplace chemical safety on Florida construction sites?

Standard Disposal Schedule
Structural Design Specification
Site Danger Summary
Safety Data Sheet (Correct answer)

Correct answer: Safety Data Sheet

SDS stands for Safety Data Sheet, which provides detailed chemical hazard and safety handling information required under OSHA's HazCom standard.

Question 3: What does FICA tax fund?

State income tax
Unemployment benefits
Workers' compensation
Social Security and Medicare (Correct answer)

Correct answer: Social Security and Medicare

FICA funds Social Security and Medicare through combined employer and employee contributions.

Question 4: In Florida public bidding, what is a 'unit price' contract most suitable for?

Emergency repair work only
Design-build contracts only
Projects where quantities are uncertain but the type of work is well-defined (Correct answer)
Projects with a completely defined, fixed scope

Correct answer: Projects where quantities are uncertain but the type of work is well-defined

Unit price contracts are ideal when the scope type is known but quantities are uncertain, allowing payment adjustments based on actual quantities installed.

Question 5: What is the required retention period for financial and project records under Florida contractor regulations?

5 years
2 years
3 years (Correct answer)
1 year

Correct answer: 3 years

Contractors are generally required to maintain project and financial records for at least 3 years.

Question 6: Under Florida Statute §489.1425, what information must a residential contractor's written contract with a homeowner include?

A rescission notice, contractor's license number, and description of work (Correct answer)
The contractor's tax ID number and bonding company
The homeowner's mortgage lender information
A waiver of lien rights by all subcontractors

Correct answer: A rescission notice, contractor's license number, and description of work

Florida §489.1425 requires residential contracts to include a 3-day rescission notice, the contractor's license number, and a description of the work to be performed.

Question 7: What is the maximum allowable slope for a supported scaffold before additional bracing is required?

1:3 (Correct answer)
1:1
1:4
1:2

Correct answer: 1:3

OSHA requires additional bracing when a supported scaffold's base is inclined beyond a 1:3 slope ratio.

Question 8: What is the purpose of a 'scope letter' submitted with a subcontractor bid in Florida?

To serve as the formal subcontract agreement
To clearly define what work is included and excluded in the subcontractor's price (Correct answer)
To list the subcontractor's insurance certificates
To document the subcontractor's bonding capacity

Correct answer: To clearly define what work is included and excluded in the subcontractor's price

A scope letter defines exactly what work, materials, and responsibilities are included or excluded in a subcontractor's bid price to prevent misunderstandings.

Question 9: In Florida construction bidding, what does the term 'addendum' refer to?

A change order issued after construction begins
A punch list item discovered at closeout
An additional scope item added after contract award
A formal written modification to bid documents issued before bid opening (Correct answer)

Correct answer: A formal written modification to bid documents issued before bid opening

An addendum is a formal written modification or clarification to bid documents issued by the owner or designer before the bid due date.

Question 10: What document typically outlines the scope of work and terms of a construction project?

Contract (Correct answer)
Blueprints
Permit
Change order

Correct answer: Contract

A contract is the legally binding document that comprehensively outlines the scope of work, terms, conditions, and responsibilities for a construction project. It specifies project details, timelines, payment schedules, and dispute resolution mechanisms. This document protects both the contractor and the client by clearly defining expectations and obligations.

Question 11: What are the grounds for disciplinary action against a Florida contractor?

Only criminal convictions
Only if the building collapses
Abandoning a project, financial mismanagement, code violations, unlicensed activity, fraud, and failure to maintain insurance (Correct answer)
Disciplinary action never occurs

Correct answer: Abandoning a project, financial mismanagement, code violations, unlicensed activity, fraud, and failure to maintain insurance

Grounds include project abandonment, diversion of funds, building code violations, performing work without proper permits, fraud, incompetence, failure to maintain insurance, and allowing unlicensed individuals to use the license.

Question 12: What is the difference between a performance bond and a payment bond?

They are the same type of bond
Performance bond guarantees project completion; payment bond guarantees payment to subcontractors and suppliers (Correct answer)
Performance bonds pay for labor; payment bonds pay for materials
Neither is required in Florida

Correct answer: Performance bond guarantees project completion; payment bond guarantees payment to subcontractors and suppliers

A performance bond protects the owner by guaranteeing the contractor will complete the project per contract terms. A payment bond protects subcontractors and suppliers by guaranteeing they will be paid for their work and materials.

Question 13: A contractor's current ratio is calculated by dividing current assets by what?

Net income
Current liabilities (Correct answer)
Total equity
Fixed assets

Correct answer: Current liabilities

The current ratio equals current assets divided by current liabilities, measuring short-term liquidity.

Question 14: A Notice of Commencement in Florida is generally valid for how long unless a different period is specified?

90 days
1 year (Correct answer)
45 days
5 years

Correct answer: 1 year

A Notice of Commencement is effective for one year unless the owner specifies a different expiration.

Question 15: In Florida, which standard is used for residential HVAC load calculations and equipment sizing?

ASHRAE 62.1
ACCA Manual J (Correct answer)
NFPA 54
SMACNA standards

Correct answer: ACCA Manual J

Florida requires ACCA Manual J to calculate residential heating and cooling loads for proper HVAC equipment sizing.

Question 16: A performance bond in a construction contract primarily protects:

The owner against contractor default (Correct answer)
The architect's fee
The subcontractor's tools
The contractor's profit

Correct answer: The owner against contractor default

A performance bond guarantees the project is completed if the contractor defaults.

Question 17: The primary function of a project's contingency budget is to:

Reimburse the owner's attorney fees
Fund marketing for the completed building
Cover unforeseen costs and unexpected conditions during construction (Correct answer)
Pay the general contractor's overhead

Correct answer: Cover unforeseen costs and unexpected conditions during construction

Contingency funds absorb unanticipated costs such as hidden conditions or errors.

Question 18: FBC guardrail height requirements for most occupancies specify a minimum height of approximately what?

60 inches
24 inches
12 inches
42 inches (Correct answer)

Correct answer: 42 inches

Guards are generally required to be at least 42 inches high to prevent falls from elevated surfaces.

Question 19: What is the purpose of a soil percolation (perc) test?

To identify the presence of underground voids
To measure how quickly water drains through the soil (Correct answer)
To evaluate the compressive strength of soil samples
To determine the soil's allowable bearing capacity

Correct answer: To measure how quickly water drains through the soil

A percolation test measures the rate at which water is absorbed by the soil, which is critical for sizing septic/drain field systems and evaluating on-site drainage design.

Question 20: When a project is 'fast-tracked,' it means:

Only night shifts are used
All materials are prefabricated offsite
Construction begins before design is fully complete to compress the schedule (Correct answer)
The permit is expedited by paying a fee

Correct answer: Construction begins before design is fully complete to compress the schedule

Fast-tracking overlaps design and construction phases to shorten overall duration.

Question 21: Which delivery method places design and construction under a single contract with the owner?

Design-build (Correct answer)
Design-bid-build
Multiple prime contracts
Construction management at-risk with separate designer

Correct answer: Design-build

Design-build gives the owner one entity responsible for both design and construction.

Question 22: Under Florida Statute §489.126, how soon must a contractor apply for a required permit after receiving a deposit from a residential homeowner?

Within 60 days
Within 14 days
Within 7 days
Within 30 days (Correct answer)

Correct answer: Within 30 days

Florida Statute §489.126 requires a contractor who receives a deposit to apply for any required permits within 30 days of receiving the deposit.

Question 23: Which of the following is required before starting construction in Florida?

Blueprint approval by subcontractor
A verbal agreement with the client
A building permit (Correct answer)
A press release

Correct answer: A building permit

Before commencing construction in Florida, obtaining a building permit from the local authority is a mandatory legal requirement. This permit ensures that the proposed construction project complies with local building codes, zoning ordinances, and safety standards. Working without a permit can lead to fines, project delays, and potential safety hazards.

Question 24: Which document is filed to formally terminate a contractor's recorded lien after payment?

Notice to Owner
Notice of Commencement
Claim of lien
Satisfaction of lien (Correct answer)

Correct answer: Satisfaction of lien

A satisfaction of lien is recorded to release the property once the lien is paid.

Question 25: How many days does an employer generally have to report a new hire to the Florida New Hire Reporting Center?

20 days (Correct answer)
45 days
5 days
90 days

Correct answer: 20 days

Florida employers must report newly hired employees within 20 days of the hire date.

Question 26: Federal unemployment tax paid by employers is reported on which form?

Form 1040
Form 940 (Correct answer)
Form W-3
Form 941

Correct answer: Form 940

Form 940 is used to report and pay federal unemployment (FUTA) tax annually.

Question 27: What is the purpose of a 'bid alternate' in Florida construction bidding?

An addition or deduction from the base bid for specified scope changes the owner may choose to accept or reject (Correct answer)
A secondary bid submitted by a backup contractor
A conditional price for materials subject to escalation
A revised bid submitted after bid opening

Correct answer: An addition or deduction from the base bid for specified scope changes the owner may choose to accept or reject

Bid alternates allow owners to adjust the project scope based on budget by accepting or rejecting pre-priced additions or deductions to the base bid.

Question 28: Which agency administers workers' compensation requirements that Florida contractors must satisfy?

The Construction Industry Licensing Board
The county building department
Florida Division of Workers' Compensation (under the Department of Financial Services) (Correct answer)
OSHA regional office

Correct answer: Florida Division of Workers' Compensation (under the Department of Financial Services)

Florida's Division of Workers' Compensation, within the Department of Financial Services, enforces workers' comp coverage requirements for the construction industry.

Question 29: What insurance is typically required on a job site?

Life insurance
Auto insurance
Health insurance
General liability insurance (Correct answer)

Correct answer: General liability insurance

General liability insurance is typically required on a construction job site to protect the contractor from claims of bodily injury or property damage caused to third parties during the course of work. This insurance covers accidents, negligence, and other unforeseen events that could lead to significant financial losses. It is crucial for managing the inherent risks in construction and ensuring financial stability for the contractor.

Question 30: Which of the following personal protective equipment (PPE) is mandatory for workers operating near energized electrical lines on a Florida construction site?

Insulating rubber gloves rated for the voltage (Correct answer)
Hard hat only
High-visibility vest
Steel-toed boots

Correct answer: Insulating rubber gloves rated for the voltage

Workers near energized electrical lines must wear insulating rubber gloves rated for the voltage level present to protect against electrocution.

Question 31: A contractor uses the percentage-of-completion method. If a job is 40% complete on a $500,000 contract, how much revenue should be recognized?

$500,000
$200,000 (Correct answer)
$40,000
$300,000

Correct answer: $200,000

Revenue recognized equals the percentage complete times total contract value: 40% of $500,000 = $200,000.

Question 32: How often is the Florida Building Code updated to a new edition?

Every 3 years (Correct answer)
Every 5 years
Every 10 years
Every year

Correct answer: Every 3 years

Florida adopts a new edition of the Building Code on a three-year cycle.

Question 33: What types of general contractor licenses does Florida issue?

Certified General Contractor (statewide) and Registered General Contractor (county-specific) (Correct answer)
Only one type of license exists
No licensing is required in Florida
Separate licenses for residential and commercial

Correct answer: Certified General Contractor (statewide) and Registered General Contractor (county-specific)

Florida issues Certified General Contractor licenses (valid statewide) and Registered General Contractor licenses (valid only in the county of registration), each with specific exam and experience requirements.

Question 34: What is 'value engineering' in the context of a Florida construction project?

A design review process performed only by engineers
Increasing the project scope to add value for the owner
Substituting brand-name products with generic alternatives without review
Analyzing construction methods and materials to achieve required function at lower cost (Correct answer)

Correct answer: Analyzing construction methods and materials to achieve required function at lower cost

Value engineering is a systematic analysis of construction methods and materials to deliver the required function at reduced cost without sacrificing quality.

Question 35: When excavating, at what depth does OSHA generally require a protective system such as sloping, shoring, or a trench box?

8 feet or deeper
3 feet or deeper
5 feet or deeper (Correct answer)
10 feet or deeper

Correct answer: 5 feet or deeper

Trenches 5 feet deep or greater require a protective system unless the excavation is made entirely in stable rock.

Question 36: What are the exam requirements for a Florida Certified General Contractor license?

Pass both a business and finance exam and a contract administration exam administered by the DBPR (Correct answer)
No exam is required with enough experience
A practical building test only
Only a written essay about construction

Correct answer: Pass both a business and finance exam and a contract administration exam administered by the DBPR

Applicants must pass two exams: a business and finance exam covering accounting, contracts, and management, and a contract administration exam covering building codes, safety, and project management.

Question 37: In estimating, what does the term 'overhead' typically refer to?

Indirect costs of running the business not tied to a single job (Correct answer)
The profit margin added to a bid
The cost of roofing materials
Direct labor on the jobsite

Correct answer: Indirect costs of running the business not tied to a single job

Overhead covers indirect business expenses—office rent, insurance, administrative salaries—that are not charged to one specific project.

Question 38: What is the main foundation challenge presented by loosely compacted or disturbed sandy fill soils common in Florida?

Excessive frost heave
Soil swelling from moisture absorption
High lateral earth pressure on basement walls
Loss of bearing capacity and settlement under structural loads (Correct answer)

Correct answer: Loss of bearing capacity and settlement under structural loads

Poorly compacted or disturbed sandy fill can consolidate and settle significantly under structural loads, causing differential settlement and foundation distress.

Question 39: A pre-construction meeting is typically held to:

Approve the certificate of occupancy
Release final retainage
Close out the punch list
Review responsibilities, schedule, safety, and procedures before work begins (Correct answer)

Correct answer: Review responsibilities, schedule, safety, and procedures before work begins

The pre-construction meeting aligns the team on procedures, schedule, and safety before mobilization.

Question 40: Under the FBC, alterations, repairs, and additions to existing structures are governed primarily by which volume?

FBC Fuel Gas
FBC Existing Building (Correct answer)
FBC Residential
FBC Energy Conservation

Correct answer: FBC Existing Building

The FBC Existing Building volume addresses alterations, repairs, additions, and changes of occupancy.

Question 41: What insurance requirements must Florida general contractors maintain?

No insurance is required
Workers' compensation, general liability, and a surety bond as required by the Construction Industry Licensing Board (Correct answer)
Only a business license
Only vehicle insurance

Correct answer: Workers' compensation, general liability, and a surety bond as required by the Construction Industry Licensing Board

Florida licensed contractors must maintain workers' compensation insurance, general liability insurance, and may need a performance bond. Requirements vary by license type and contract value.

Question 42: Which agency is primarily responsible for adopting and maintaining the Florida Building Code?

The U.S. Department of Housing
The Florida Bar Association
OSHA
The Florida Building Commission (Correct answer)

Correct answer: The Florida Building Commission

The Florida Building Commission oversees development, adoption, and amendment of the FBC.

Question 43: What are the financial requirements for obtaining a Florida general contractor license?

Financial requirements only apply to large companies
Demonstrating financial stability through credit reports, financial statements, and meeting minimum net worth requirements (Correct answer)
Only a checking account is needed
No financial requirements exist

Correct answer: Demonstrating financial stability through credit reports, financial statements, and meeting minimum net worth requirements

Florida requires contractor license applicants to demonstrate financial responsibility through financial statements showing adequate net worth, credit history review, and in some cases, obtaining a surety bond.

Question 44: In Florida, what is the contractor's obligation regarding a written change order when the scope of work changes?

Only the owner must sign change orders for them to be valid
Written change orders should document scope, price, and time adjustments before work proceeds (Correct answer)
Change orders only need to be documented after project completion
Oral change orders are fully enforceable in Florida courts

Correct answer: Written change orders should document scope, price, and time adjustments before work proceeds

Best practice and most Florida construction contracts require written change orders documenting scope, cost, and schedule impacts before the changed work is performed.

Question 45: What is the primary purpose of a contractor maintaining workers' compensation insurance in Florida?

Protect against property theft
Cover employee job-related injuries (Correct answer)
Cover owner's personal liability
Insure completed work defects

Correct answer: Cover employee job-related injuries

Workers' compensation covers medical costs and lost wages for employees injured on the job.

Question 46: In job costing, direct labor plus direct materials plus direct job overhead equals what?

Net profit
Markup
Gross profit
Total job cost (Correct answer)

Correct answer: Total job cost

Total job cost is the sum of direct labor, direct materials, and job overhead.

Question 47: What must a contractor obtain from the building department before occupants can legally use a new building?

Certificate of Occupancy (CO) (Correct answer)
A lien
A renewal notice
A business card

Correct answer: Certificate of Occupancy (CO)

A Certificate of Occupancy is issued after final inspection, permitting lawful occupancy.

Question 48: What does a Florida general contractor license allow, unlike a building contractor license?

Only interior remodels
Unlimited work including structures of any height (Correct answer)
Only commercial roofing
Only single-family homes

Correct answer: Unlimited work including structures of any height

General contractors may build structures of unlimited height, while building contractors are limited to structures up to three stories.

Question 49: What is 'quantity takeoff' in the context of Florida construction estimating?

The calculation of contractor profit
The process of measuring and quantifying all materials and labor from construction documents (Correct answer)
The final project inspection report
A method to estimate soft costs like design fees

Correct answer: The process of measuring and quantifying all materials and labor from construction documents

Quantity takeoff is the process of measuring all materials, labor, and equipment quantities directly from drawings and specifications.

Question 50: Which Florida building code governs the installation of electrical systems in new commercial construction?

ASHRAE 90.1 Standard
Florida Fire Prevention Code
Florida Plumbing Code
Florida Building Code — Electrical (based on NFPA 70/NEC) (Correct answer)

Correct answer: Florida Building Code — Electrical (based on NFPA 70/NEC)

The Florida Building Code — Electrical is based on NFPA 70 (National Electrical Code) and governs all electrical installations in new construction.

Question 51: What is the minimum general liability insurance required to obtain a Florida general contractor certification?

$500,000 combined single limit
$300,000 public liability and $100,000 property damage (Correct answer)
$50,000 public liability and $50,000 property damage
$100,000 public liability and $25,000 property damage

Correct answer: $300,000 public liability and $100,000 property damage

Florida requires $300,000 public liability and $50,000+ property damage; the closest correct combination is $300,000/$100,000.

Question 52: A performance bond primarily guarantees what?

Payment of income taxes
Payment of employee wages
Repair of latent defects for 10 years
Completion of the contract per its terms (Correct answer)

Correct answer: Completion of the contract per its terms

A performance bond guarantees the contractor will complete the project according to the contract.

Question 53: Which Florida trade license is required to perform air conditioning work on systems with more than 25 tons of cooling capacity?

Registered HVAC technician certificate
Class B Air Conditioning Contractor license
Mechanical Contractor license
Class A Air Conditioning Contractor license (Correct answer)

Correct answer: Class A Air Conditioning Contractor license

A Class A Air Conditioning Contractor license in Florida is required for unlimited tonnage, including systems over 25 tons of cooling capacity.

Question 54: How many years of experience are typically required to qualify to sit for the Florida certified general contractor exam?

10 years with no substitutions
1 year
No experience is required
4 years of proven experience (or education plus experience combinations) (Correct answer)

Correct answer: 4 years of proven experience (or education plus experience combinations)

Applicants generally need four years of experience, though approved education can substitute for a portion of that requirement.

Question 55: If a contractor's labor burden rate is 30% and base wages are $50,000, what is the total labor cost?

$50,300
$80,000
$65,000 (Correct answer)
$15,000

Correct answer: $65,000

Adding 30% burden to $50,000 in base wages yields $65,000 in total labor cost.

Question 56: A contractor pays $1,200 for a 12-month insurance policy. What is the monthly prepaid expense amortization?

$120
$1,200
$100 (Correct answer)
$12

Correct answer: $100

The $1,200 premium spread over 12 months equals $100 recognized each month.

Question 57: Retainage on a construction contract refers to what?

A bond premium
A tax on materials
A permit fee
A portion of payment withheld until completion (Correct answer)

Correct answer: A portion of payment withheld until completion

Retainage is a percentage of each progress payment withheld until the work is satisfactorily completed.

Question 58: What are submittals in construction and why are they important?

Documents and samples provided by the contractor for architect/engineer approval before installation, ensuring compliance with design intent (Correct answer)
Insurance claim forms
Financial statements submitted to the bank
Job applications from workers

Correct answer: Documents and samples provided by the contractor for architect/engineer approval before installation, ensuring compliance with design intent

Submittals include shop drawings, product data, samples, and mock-ups that the contractor provides for the architect/engineer's review and approval before installation, ensuring materials and methods comply with the design documents.

Question 59: In construction estimating, what does the term 'contingency' refer to?

A reserve added to the estimate to cover unforeseen costs or scope uncertainties (Correct answer)
The profit margin added to the estimate
The subcontractor markup above direct costs
The overhead allocation percentage

Correct answer: A reserve added to the estimate to cover unforeseen costs or scope uncertainties

A contingency is a percentage or dollar amount added to a construction estimate to account for unforeseen conditions and scope uncertainties.

Question 60: Under Florida law, when must a contractor generally provide a written contract for a residential improvement exceeding $2,500?

When the project exceeds $2,500 (Correct answer)
Never, verbal is sufficient
Only when the owner requests it
Only for new construction

Correct answer: When the project exceeds $2,500

Florida requires a written contract for residential improvements exceeding $2,500 with required disclosures.

Question 61: In Florida construction estimating, what does 'CSI MasterFormat' provide?

A grading system for contractor performance
A standardized numbering and naming system for organizing construction specifications and cost data (Correct answer)
An OSHA compliance checklist
A legal framework for construction disputes

Correct answer: A standardized numbering and naming system for organizing construction specifications and cost data

CSI MasterFormat provides a standardized organizational system with numbered divisions for organizing construction specifications and cost estimates.

Question 62: What wind speed zones exist in Florida and how do they affect construction?

The entire state has the same wind requirements
Florida has no wind speed requirements
Wind zones only apply to coastal areas
Florida has multiple wind zones from 110-180+ mph design wind speeds, with the highest in South Florida and the Keys (Correct answer)

Correct answer: Florida has multiple wind zones from 110-180+ mph design wind speeds, with the highest in South Florida and the Keys

Florida's wind map designates design wind speeds ranging from 110 mph in northern areas to 180+ mph in the Florida Keys, directly affecting structural design, roofing, windows, and materials specifications.

Question 63: A Notice to Owner in Florida must be served on the owner within how many days of first furnishing labor or materials?

90 days
60 days
15 days
45 days (Correct answer)

Correct answer: 45 days

Lienors not in privity with the owner must serve a Notice to Owner within 45 days of first furnishing.

Question 64: What is the qualifying agent system in Florida construction licensing?

A real estate agent who finds construction projects
A building inspector
A licensed individual who qualifies a business entity to perform contracting work, taking responsibility for the company's construction activities (Correct answer)
An insurance agent who qualifies contractors

Correct answer: A licensed individual who qualifies a business entity to perform contracting work, taking responsibility for the company's construction activities

In Florida, a qualifying agent is the licensed contractor who qualifies a business entity to engage in contracting, bearing personal responsibility for the company's construction practices and compliance.

Question 65: A product's Florida Product Approval or Miami-Dade NOA primarily documents that the product has been tested for what?

Compliance with wind and impact requirements (Correct answer)
ADA accessibility
Energy efficiency ratings only
Fire sprinkler flow rates

Correct answer: Compliance with wind and impact requirements

Product approvals and Notices of Acceptance verify a product meets FBC structural, wind, and impact standards.

Question 66: Which activity requires a building permit in Florida?

Replacing a light bulb
Structural additions and major electrical or plumbing work (Correct answer)
Painting a wall
Mowing the lawn

Correct answer: Structural additions and major electrical or plumbing work

Structural, electrical, and plumbing changes generally require permits from the local building department.

Question 67: In Florida, which entity must inspect and approve the rough-in of a mechanical system before walls are closed in?

The local building department's mechanical inspector (Correct answer)
The general contractor only
The HVAC manufacturer's representative
The project architect

Correct answer: The local building department's mechanical inspector

A local building department mechanical inspector must inspect and approve rough-in mechanical work before walls are closed in per the Florida Building Code.

Question 68: Which federal agency sets workplace safety standards that Florida contractors must follow?

IRS
EPA
SBA
OSHA (Correct answer)

Correct answer: OSHA

OSHA establishes and enforces workplace safety and health standards.

Question 69: Under Florida law, a construction lien claim must generally be recorded within how many days after the last furnishing of labor or materials?

60 days
30 days
90 days (Correct answer)
120 days

Correct answer: 90 days

A claim of lien must be recorded within 90 days after final furnishing of labor, services, or materials.

Question 70: What is the primary function of waterproofing applied to a below-grade foundation wall?

To improve the bond between the wall and backfill
To insulate the foundation against temperature changes
To prevent water and moisture from penetrating into the structure through hydrostatic pressure (Correct answer)
To increase the structural strength of the wall

Correct answer: To prevent water and moisture from penetrating into the structure through hydrostatic pressure

Below-grade waterproofing creates a barrier against hydrostatic pressure and moisture migration through foundation walls, protecting the interior and preventing structural deterioration.

Question 71: Under Florida law, which party typically holds the duty to defend and indemnify the other in a broad-form indemnification clause in a construction subcontract?

The subcontractor indemnifies the general contractor and owner (Correct answer)
OSHA assumes liability through the insurance program
The general contractor indemnifies the subcontractor
The project owner indemnifies all parties

Correct answer: The subcontractor indemnifies the general contractor and owner

Broad-form indemnification clauses in subcontracts typically require the subcontractor to defend and indemnify the general contractor and owner, though Florida limits indemnity for indemnitee's own negligence.

Question 72: In Florida, what type of pipe material is typically prohibited for use as supply water piping in residential construction due to historical failure issues?

Polybutylene (PB) (Correct answer)
Copper type L
PEX
CPVC

Correct answer: Polybutylene (PB)

Polybutylene (PB) pipe was banned from new construction due to widespread failures caused by reaction to oxidants in public water supplies.

Question 73: Which Florida statute chapter governs the Construction Lien Law?

Chapter 553
Chapter 713 (Correct answer)
Chapter 440
Chapter 489

Correct answer: Chapter 713

Chapter 713 of the Florida Statutes sets out the Construction Lien Law and related lienor rights and procedures.

Question 74: What is the maximum retainage allowed on most Florida public construction contracts after 50% completion?

10%
15%
20%
5% (Correct answer)

Correct answer: 5%

Florida law limits retainage on public projects to 5% after the project is 50% complete.

Question 75: A contractor bids a job at $80,000 with costs of $64,000. What is the gross profit margin percentage?

16%
80%
20% (Correct answer)
25%

Correct answer: 20%

Gross profit of $16,000 divided by revenue of $80,000 equals a 20% margin.

Question 76: What is 'retainage' in a Florida construction contract, and what is its typical percentage?

A bonus paid for early completion, typically 5%
The GC's profit margin, typically 10–15%
A percentage of each payment withheld until project completion, typically 5–10% (Correct answer)
An insurance reserve, typically 2%

Correct answer: A percentage of each payment withheld until project completion, typically 5–10%

Retainage is a percentage of each progress payment withheld—typically 5–10%—until the project reaches substantial completion, providing owner security.

Question 77: FBC flood provisions require the lowest floor of a building in a Special Flood Hazard Area to be at or above what?

The average grade of the street
The property line
The base flood elevation (BFE) (Correct answer)
The roof ridge

Correct answer: The base flood elevation (BFE)

Structures in flood zones must have their lowest floor elevated to or above the base flood elevation.

Question 78: What is the difference between 'direct costs' and 'indirect costs' in a Florida construction estimate?

Direct costs are paid to the owner; indirect costs are paid to the architect
Direct costs include profit; indirect costs do not
Direct costs are tied to specific work items (labor, materials); indirect costs are overhead not attributable to a single work item (Correct answer)
Direct costs are fixed; indirect costs are variable

Correct answer: Direct costs are tied to specific work items (labor, materials); indirect costs are overhead not attributable to a single work item

Direct costs are labor, material, and equipment costs tied to specific work items, while indirect costs like project management and insurance are not attributable to a single task.

Question 79: What does 'bid shopping' mean in the Florida construction industry, and why is it considered unethical?

Submitting multiple bids under different company names
Shopping for better material prices after bid submission
Comparing multiple bids before awarding a subcontract, which is standard practice
Using a subcontractor's bid price to solicit lower bids from competitors after contract award, undermining trust (Correct answer)

Correct answer: Using a subcontractor's bid price to solicit lower bids from competitors after contract award, undermining trust

Bid shopping occurs when a GC uses a sub's price to pressure competitors to underbid after award; it's unethical because it violates trust and distorts competition.

Question 80: Which of the following is a required component of a Hazard Communication (HazCom) program on a Florida construction site?

Monthly OSHA inspections
Safety Data Sheets for all hazardous chemicals (Correct answer)
Daily safety meetings
Fire suppression systems at every station

Correct answer: Safety Data Sheets for all hazardous chemicals

OSHA's Hazard Communication Standard requires Safety Data Sheets (SDS) to be maintained and accessible for all hazardous chemicals on-site.

Question 81: The Florida Building Code is primarily based on which model code?

The National Electrical Code only
The International Building Code (IBC) (Correct answer)
No model code
The Uniform Commercial Code

Correct answer: The International Building Code (IBC)

The Florida Building Code is adapted from the International Codes, including the IBC.

Question 82: Under Florida's Construction Lien Law, within how many days must a subcontractor serve a Notice to Owner after first furnishing labor or materials?

90 days
120 days
10 days
45 days (Correct answer)

Correct answer: 45 days

A Notice to Owner must be served within 45 days of first furnishing labor or materials to preserve lien rights.

Question 83: What safety regulations must Florida general contractors follow?

No safety regulations apply to private construction
Safety rules only apply to commercial projects
OSHA regulations, Florida-specific safety requirements, and site-specific safety plans including fall protection, scaffolding, and excavation safety (Correct answer)
Only federal regulations, no state requirements

Correct answer: OSHA regulations, Florida-specific safety requirements, and site-specific safety plans including fall protection, scaffolding, and excavation safety

Florida contractors must comply with federal OSHA standards, Florida Department of Business and Professional Regulation requirements, and develop site-specific safety plans addressing hazards like falls, trenching, electrical, and heavy equipment.

Question 84: A contractor's break-even point occurs when total revenue equals what?

Gross profit
Total costs (Correct answer)
Fixed costs only
Variable costs only

Correct answer: Total costs

Break-even is reached when total revenue equals total fixed plus variable costs, producing zero profit.

Question 85: Under OSHA standards, at what fall height in general construction is fall protection generally required?

12 feet
4 feet
6 feet (Correct answer)
10 feet

Correct answer: 6 feet

OSHA requires fall protection in construction at heights of 6 feet or more above a lower level.

Question 86: Which insurance protects a contractor against claims of bodily injury or property damage to third parties?

Health insurance
Workers' compensation
Builder's risk insurance
General liability insurance (Correct answer)

Correct answer: General liability insurance

General liability insurance covers third-party bodily injury and property damage claims.

Question 87: Which document defines the detailed technical requirements and quality of materials for a project?

The lien waiver
The specifications (Correct answer)
The invoice
The business license

Correct answer: The specifications

Specifications describe the quality, materials, and workmanship standards for the project.

Question 88: When a Florida contractor submits a 'Schedule of Values' with a pay application, what is its primary purpose?

To list subcontractor payment schedules
To verify material delivery dates
To document the final contract price
To allocate the total contract sum to individual work items for progress payment billing (Correct answer)

Correct answer: To allocate the total contract sum to individual work items for progress payment billing

A Schedule of Values breaks the contract sum into line items for each work component, enabling accurate progress billing and payment calculations.

Question 89: Which Florida tax must a contractor typically collect on retail sales of tangible personal property?

Sales and use tax (Correct answer)
Federal excise tax
Intangible tax
Documentary stamp tax

Correct answer: Sales and use tax

Florida sales and use tax applies to retail sales of tangible personal property.

Question 90: How long must Florida employers generally retain payroll records under federal FLSA requirements?

1 year
10 years
3 years (Correct answer)
7 years

Correct answer: 3 years

The FLSA requires payroll records to be kept for at least three years.

Question 91: A Florida contractor wants to reduce the tax withheld from an employee's paycheck. Which form does the employee complete to set federal income tax withholding?

IRS Form W-4 (Correct answer)
IRS Form W-2
IRS Form 1099
IRS Form 941

Correct answer: IRS Form W-4

Employees complete Form W-4 to indicate withholding allowances that determine federal income tax withheld.

Question 92: What is a Notice of Commencement in Florida construction?

A recorded document notifying that construction has begun, establishing lien rights and identifying the project parties (Correct answer)
A notice to neighbors about noise
A certificate of occupancy
A building permit application

Correct answer: A recorded document notifying that construction has begun, establishing lien rights and identifying the project parties

Florida law requires recording a Notice of Commencement before construction begins, identifying the owner, contractor, surety, lender, and property, establishing the framework for construction lien rights.

Question 93: If a subcontractor is unpaid, they may protect their interest by filing a:

Building permit
Tax return
Zoning variance
Construction (mechanic's) lien (Correct answer)

Correct answer: Construction (mechanic's) lien

Unpaid subcontractors and suppliers can file a construction lien against the property.

Question 94: Who is responsible for ensuring job site safety?

Local police
Contractor (Correct answer)
Client
Architect

Correct answer: Contractor

The contractor, as the party directly managing the construction site and its workers, bears primary responsibility for job site safety. They are legally and ethically obligated to implement safety protocols, provide necessary training, and ensure compliance with regulations like OSHA to prevent accidents and injuries. While others have roles, the contractor oversees the overall safety environment.

Question 95: When preparing a Florida construction estimate, what is the typical range for a general contractor's overhead and profit (O&P) markup on subcontractor work?

5–15% (Correct answer)
35–50%
1–3%
20–30%

Correct answer: 5–15%

General contractors in Florida typically apply an overhead and profit markup of 5–15% on subcontractor costs, though this varies by project type and market.

Question 96: A Florida contractor discovers unforeseen subsurface conditions that materially differ from those indicated in contract documents. Which clause typically covers this situation?

Consequential damages waiver
Differing site conditions clause (Correct answer)
Force majeure clause
Indemnification clause

Correct answer: Differing site conditions clause

A differing site conditions clause entitles the contractor to additional compensation or time when actual site conditions differ materially from what the contract indicated.

Question 97: What does the term 'bid bond' guarantee in a Florida public construction bid?

That the contractor will complete the project on time
That the contractor will enter into the contract and provide required bonds if awarded the bid (Correct answer)
That the bid price is the lowest available in the market
That all subcontractors have been pre-qualified

Correct answer: That the contractor will enter into the contract and provide required bonds if awarded the bid

A bid bond guarantees that if the bidder wins, they will execute the contract and provide required performance and payment bonds.

Question 98: What does a 'retainage' provision in a construction contract allow the owner to do?

Withhold a percentage of each payment until completion (Correct answer)
Extend the warranty indefinitely
Increase the contract price after signing
Cancel the permit

Correct answer: Withhold a percentage of each payment until completion

Retainage lets the owner hold back a percentage of progress payments as security until the work is complete.

Question 99: In a lump-sum (fixed-price) contract, who primarily bears the risk of cost overruns?

The lender
The architect
The contractor (Correct answer)
The owner

Correct answer: The contractor

Under a lump-sum contract the contractor absorbs cost overruns because the price is fixed.

Question 100: Under the Florida Building Code, what is required when an air handler unit is installed in an attic space to prevent water damage from condensate overflow?

Insulation wrap on the drain pan only
A secondary drain pan with a separate drain line or overflow switch (Correct answer)
A float valve on the primary drain only
An overflow alarm audible from outside the building

Correct answer: A secondary drain pan with a separate drain line or overflow switch

Florida requires a secondary drain pan with a separate condensate drain line or an overflow safety switch when air handlers are installed in attic spaces.

Question 101: On a Florida public construction project, what is typically required to be submitted with a bid to demonstrate the contractor's ability to complete the project?

A signed subcontractor list and bid bond only
A letter of intent from the project lender
Only the contractor's license number
Bid bond, financial statements or prequalification documents, and license verification (Correct answer)

Correct answer: Bid bond, financial statements or prequalification documents, and license verification

Florida public bids commonly require a bid bond, financial prequalification or statements, and proof of a valid contractor license.

Question 102: Which of the following is considered a variable cost for a contracting business?

Office rent
Owner's salary
Materials for each job (Correct answer)
Business license fee

Correct answer: Materials for each job

Job materials vary directly with production volume, making them a variable cost.

Question 103: A liquidated damages clause in a construction contract is intended to:

Set a predetermined daily amount owed by the contractor for late completion (Correct answer)
Pay bonuses to subcontractors
Reward the owner for early payment
Cover the cost of liquidated assets

Correct answer: Set a predetermined daily amount owed by the contractor for late completion

Liquidated damages fix a daily sum the contractor pays if the project finishes late.

Question 104: The Florida Building Code (FBC) is based on which model code as its foundation?

The International Building Code (ICC) (Correct answer)
The BOCA National Building Code
The Uniform Building Code (UBC)
The Standard Building Code (SBCCI)

Correct answer: The International Building Code (ICC)

The FBC is adapted from the International Code Council's family of codes, primarily the International Building Code.

Question 105: An SPT blow count of 50 or 'refusal' most likely indicates which soil condition?

Loose sand with high water content
Very dense granular soil or rock (Correct answer)
Highly organic peat
Very soft clay

Correct answer: Very dense granular soil or rock

A blow count of 50 (or refusal when the sampler will not advance) indicates very dense granular soil or rock, which generally has high bearing capacity.

Question 106: Which of the following is typically included in a contractor's 'general conditions' costs in a Florida project estimate?

Cost of structural steel materials
Design and engineering fees
Subcontractor labor only
Job-site superintendent salary, temporary facilities, and site safety equipment (Correct answer)

Correct answer: Job-site superintendent salary, temporary facilities, and site safety equipment

General conditions costs include project-specific overhead like superintendent salary, temporary offices, portable toilets, safety equipment, and site fencing.

Question 107: Which volume of the Florida Building Code specifically governs one- and two-family dwellings?

FBC Mechanical
FBC Existing Building
FBC Residential (Correct answer)
FBC Plumbing

Correct answer: FBC Residential

The FBC Residential volume covers detached one- and two-family dwellings and townhouses up to three stories.

Question 108: What Florida statute governs competitive bidding requirements for public construction contracts exceeding certain thresholds?

Florida Statute §287.055
Florida Statute §255.20 (Correct answer)
Florida Statute §489.113
Florida Statute §713.02

Correct answer: Florida Statute §255.20

Florida Statute §255.20 establishes competitive bidding requirements for public construction projects exceeding specified dollar thresholds.

Question 109: What is the standard minimum passing score on each part of the Florida contractor examination?

60%
80%
70% (Correct answer)
50%

Correct answer: 70%

Candidates must achieve at least 70% on each portion of the state contractor exam to pass.

Question 110: Which of the following must a certified contractor maintain to keep the license active?

Workers' compensation and liability insurance (Correct answer)
A pilot's license
A real estate license
Nothing

Correct answer: Workers' compensation and liability insurance

Contractors must maintain public liability and workers' compensation insurance as required by law.

Question 111: In double-entry bookkeeping, every debit must be matched by an equal what?

Asset
Liability
Expense
Credit (Correct answer)

Correct answer: Credit

Double-entry accounting requires total debits to equal total credits for every transaction.

Question 112: What is the primary function of a 'liquidated damages' clause in a Florida construction contract?

To predetermine the daily cost of delays when actual damages are difficult to calculate (Correct answer)
To require bonding on all subcontractors
To limit the contractor's total liability
To penalize contractors for safety violations

Correct answer: To predetermine the daily cost of delays when actual damages are difficult to calculate

Liquidated damages clauses establish a pre-agreed daily dollar amount for project delays, avoiding the difficulty of proving actual damages.

Question 113: Under the Florida Building Code, who is authorized to prepare and seal a geotechnical investigation report for a construction project?

The building official after site inspection
The licensed general contractor of record
A licensed geotechnical or civil engineer registered in Florida (Correct answer)
The project architect

Correct answer: A licensed geotechnical or civil engineer registered in Florida

Florida law requires geotechnical reports to be prepared and sealed by a licensed professional engineer (geotechnical or civil) registered in Florida, as it involves engineering judgments about subsurface conditions.

Question 114: Under OSHA, at what height in construction must fall protection generally be provided?

15 feet
6 feet (Correct answer)
10 feet
4 feet

Correct answer: 6 feet

OSHA requires fall protection for construction workers exposed to falls of 6 feet or more to a lower level.

Question 115: What is the Construction Industry Licensing Board (CILB)?

A federal construction agency
A private industry association
A union for construction workers
The Florida state board that regulates construction contractor licensing, discipline, and continuing education requirements (Correct answer)

Correct answer: The Florida state board that regulates construction contractor licensing, discipline, and continuing education requirements

The CILB operates under the Florida Department of Business and Professional Regulation, overseeing contractor licensing exams, issuance, renewals, continuing education, and disciplinary actions for violations.

Question 116: Which entity structure generally provides owners limited personal liability while allowing pass-through taxation?

General partnership
C corporation
Sole proprietorship
Limited liability company (LLC) (Correct answer)

Correct answer: Limited liability company (LLC)

An LLC combines limited liability protection with pass-through taxation to its members.

Question 117: Under Florida law, what is the maximum retainage that can be withheld on a public construction contract once the project is 50% complete?

No retainage is allowed on public projects
Retainage can be reduced to 5% after 50% completion (Correct answer)
10% throughout the project
Retainage must be fully released at 50% completion

Correct answer: Retainage can be reduced to 5% after 50% completion

Florida Statute §255.078 requires that retainage on public projects be reduced to no more than 5% once the project reaches 50% completion.

Question 118: What is the primary reason geotechnical soil borings are performed before a construction project?

To measure soil color and texture
To identify underground utilities
To determine soil layers, bearing capacity, and groundwater conditions for foundation design (Correct answer)
To check for buried archaeological artifacts

Correct answer: To determine soil layers, bearing capacity, and groundwater conditions for foundation design

Soil borings provide engineers with data on soil stratification, bearing capacity, and groundwater depth, which are essential for designing an appropriate and safe foundation system.

Question 119: A subcontractor not in direct contract with the owner must serve what document to preserve lien rights?

Notice of Termination
Final Affidavit
Notice to Owner (Correct answer)
Notice of Commencement

Correct answer: Notice to Owner

The Notice to Owner alerts the property owner that a subcontractor or supplier may claim a lien, and must generally be served within 45 days of first furnishing.

Question 120: Under Florida law, who must sign and seal engineered structural plans?

The homeowner
The contractor only
A licensed professional engineer or architect (Correct answer)
A building inspector

Correct answer: A licensed professional engineer or architect

Structural and engineering plans must be sealed by a licensed engineer or architect.

Question 121: A qualifying agent for a Florida contracting business is primarily responsible for what?

Handling only payroll
Marketing the business
Supervising the company's construction operations (Correct answer)
Selling the company's stock

Correct answer: Supervising the company's construction operations

The qualifying agent supervises the construction activities conducted under the company's license.

Question 122: What is the purpose of a payment bond on a construction project?

To ensure subcontractors and suppliers get paid (Correct answer)
To cover the owner's mortgage
To insure against fire damage
To guarantee project quality

Correct answer: To ensure subcontractors and suppliers get paid

A payment bond guarantees that subcontractors, laborers, and material suppliers are paid.

Question 123: What is a punch list used for in construction?

Daily safety reports
Final task checklist (Correct answer)
List of required permits
Employee attendance

Correct answer: Final task checklist

A punch list is a detailed document created towards the completion of a construction project, typically during a final inspection. It itemizes all outstanding items, minor deficiencies, or incomplete work that the contractor must address before the project is officially handed over and final payment is made. This ensures all aspects of the project meet the agreed-upon standards.

Question 124: Which building code governs construction in the state of Florida?

Florida Building Code (FBC) (Correct answer)
International Building Code (IBC) unmodified
National Construction Standard
Uniform Construction Code

Correct answer: Florida Building Code (FBC)

The Florida Building Code, based on the I-Codes with state amendments, governs all Florida construction.

Question 125: What financial statement shows a contractor's assets, liabilities, and owner's equity at a specific point in time?

Balance sheet (Correct answer)
Income statement
Cash flow statement
Job cost report

Correct answer: Balance sheet

The balance sheet reports assets, liabilities, and equity as of a specific date.

Florida Certified General Contractor (CGC) Exam

The Florida CGC licensing exam tests candidates across three parts — Business & Finance, Contract Administration, and Project Management — administered by Pearson VUE on behalf of the CILB. A minimum score of 70% is required on each section.

125

Questions

405 min

Time Limit

70%

To Pass

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