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

Question 1: How long must Florida employers generally retain payroll records under federal FLSA requirements?

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

Correct answer: 3 years

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

Question 2: 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 are fixed; indirect costs are variable
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)

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

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

Correct answer: Total job cost

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

Question 4: What is 'value engineering' in the context of a Florida construction project?

Substituting brand-name products with generic alternatives without review
A design review process performed only by engineers
Increasing the project scope to add value for the owner
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 5: The certificate of occupancy for a completed building is issued by:

The project architect alone
The local building department after final inspections pass (Correct answer)
The surety bond company
The general contractor at closeout

Correct answer: The local building department after final inspections pass

The building department issues the certificate of occupancy once required inspections are approved.

Question 6: Value engineering on a construction project aims to:

Maximize the amount of change orders
Eliminate the warranty obligations
Increase the contract sum for the contractor
Achieve required functions at the lowest lifecycle cost without sacrificing quality (Correct answer)

Correct answer: Achieve required functions at the lowest lifecycle cost without sacrificing quality

Value engineering optimizes function versus cost to deliver required performance economically.

Question 7: What are the grounds for disciplinary action against a Florida contractor?

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

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

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

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 9: Which of the following ladder conditions requires removing the ladder from service on a Florida job site?

A ladder with a broken or missing rung (Correct answer)
A ladder used for more than 2 years
A ladder without a manufacturer's label
A ladder used more than 10 feet above grade

Correct answer: A ladder with a broken or missing rung

A ladder with broken or missing rungs must be immediately removed from service as it poses a severe fall hazard.

Question 10: What license is required to perform general contracting in Florida?

HVAC technician license
Real estate license
Electrical license
Certified General Contractor license (Correct answer)

Correct answer: Certified General Contractor license

In Florida, individuals or businesses performing general contracting work are legally required to hold a Certified General Contractor license. This state-level license ensures that contractors meet specific experience, education, and examination requirements, demonstrating their competence and adherence to state building codes and regulations. It is essential for overseeing major construction projects and ensuring public safety.

Question 11: In Florida construction estimating, what does 'CSI MasterFormat' provide?

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

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 12: Which foundation type distributes a building's entire structural load across the full footprint of the structure?

Strip (continuous) footing
Isolated spread footing
Mat (raft) foundation (Correct answer)
Pile cap

Correct answer: Mat (raft) foundation

A mat or raft foundation is a thick continuous concrete slab beneath the entire building that distributes loads broadly, used where soil has low bearing capacity.

Question 13: If a contractor's labor burden rate is 30% and base wages are $50,000, what is the total labor cost?

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

Correct answer: $65,000

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

Question 14: What is the primary structural purpose of a grade beam in a foundation system?

To act as a basement retaining wall
To support roof loads at the ridge
To drain groundwater away from the slab
To connect foundation elements such as pile caps and support load-bearing walls (Correct answer)

Correct answer: To connect foundation elements such as pile caps and support load-bearing walls

Grade beams are reinforced concrete beams at or near grade that span between pile caps or footings, carrying wall loads and tying the foundation system together.

Question 15: Under the FBC, exit access travel distance limits are primarily intended to ensure what?

Safe and timely occupant egress in an emergency (Correct answer)
Proper HVAC balancing
Sufficient natural lighting
Adequate parking supply

Correct answer: Safe and timely occupant egress in an emergency

Travel distance limits ensure occupants can reach an exit quickly during a fire or emergency.

Question 16: The main purpose of a submittal log is to:

Document all safety violations
Record concrete cylinder break results only
Track the status and approval of shop drawings, product data, and samples (Correct answer)
List every worker's certification expiration

Correct answer: Track the status and approval of shop drawings, product data, and samples

A submittal log monitors the review and approval status of required submittals.

Question 17: Which Florida statute chapter governs the Construction Lien Law?

Chapter 553
Chapter 440
Chapter 713 (Correct answer)
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 18: What does FICA tax fund?

State income tax
Workers' compensation
Unemployment benefits
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 19: What types of general contractor licenses does Florida issue?

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

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

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

Correct answer: Balance sheet

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

Question 21: What is the function of an arc fault circuit interrupter (AFCI) breaker required by the Florida Building Code in bedrooms and living areas?

To replace GFCI protection in bathrooms
To prevent overloading of the circuit
To detect and interrupt dangerous arc faults that can cause electrical fires (Correct answer)
To regulate voltage fluctuations to sensitive electronics

Correct answer: To detect and interrupt dangerous arc faults that can cause electrical fires

AFCI breakers detect the electrical signature of dangerous arc faults in wiring and devices, tripping the circuit to prevent fires.

Question 22: Under Florida Statute §489.1425, what information must a residential contractor's written contract with a homeowner include?

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

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 23: Who is responsible for ensuring job site safety?

Architect
Contractor (Correct answer)
Client
Local police

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

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

Correct answer: Cover employee job-related injuries

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

Question 25: 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
Bid bond, financial statements or prequalification documents, and license verification (Correct answer)
Only the contractor's license number

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

To clearly define what work is included and excluded in the subcontractor's price (Correct answer)
To serve as the formal subcontract agreement
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 27: Under Florida's Construction Lien Law, within how many days must a subcontractor serve a Notice to Owner after first furnishing labor or materials?

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

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

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

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 29: What is the primary purpose of a Notice of Commencement in Florida construction?

To establish the priority date for liens and identify the project (Correct answer)
To release the contractor from warranty obligations
To request a building inspection
To transfer property ownership

Correct answer: To establish the priority date for liens and identify the project

The Notice of Commencement sets lien priority and identifies the owner, contractor, and property before work begins.

Question 30: Under the FBC, what document must generally be obtained before construction begins on a permitted project?

A final inspection report
A contractor's bond release
A certificate of occupancy
A building permit (Correct answer)

Correct answer: A building permit

A building permit must be issued by the local building official before construction may lawfully start.

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.

Questions

40 min

Time Limit

70%

To Pass

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