Florida Contractors Exam Test Questions & Verified Answers
2026| Latest Update | Graded A+
1. Describe the significance of the net worth to total assets ratio in the context
of a contractor's financial health.
The ratio measures the contractor's ability to pay subcontractors.
The net worth to total assets ratio indicates the proportion of a
contractor's assets that are financed by their own equity.
The ratio shows how much debt a contractor has compared to their
assets.
It reflects the total revenue generated by a contractor's projects.
2. When is a general contractor not required to subcontract the continuations of
utility line from the mains?
Airport
Single family homes
Hotels
Mobile home parks
3. According to the AIA, what are shop drawings, product data, and samples
classified as?
Submittals
Contracts
Change orders
Specifications
,4. If a contractor has a significant amount of taxes payable classified as current
liabilities, how might this affect their financial decisions in a construction
project?
It has no effect on financial decisions as taxes are not a priority.
It allows the contractor to invest more in new projects without
concern.
It may lead to prioritizing cash reserves to meet tax obligations
before other expenses.
It encourages the contractor to take on more subcontractors to
spread out costs.
5. What is the definition of a construction change directive as per AIA
guidelines?
A construction change directive is a written order to the contractor
to make a change in the work without the prior agreement of the
contractor on the adjustment in the contract sum or the contract
time.
A construction change directive is a document that outlines the
responsibilities of subcontractors.
A construction change directive is a notification of project
completion.
A construction change directive is a formal request for additional
funds from the client.
6. Describe how a cost plus contract differs from a fixed-price contract.
A cost plus contract reimburses actual costs and includes a fee,
while a fixed-price contract has a set price regardless of actual
costs.
, A fixed-price contract allows for unlimited changes without cost
implications.
A cost plus contract requires no documentation of expenses.
A cost plus contract is always cheaper than a fixed-price contract.
7. Describe the legal implications for consumers when dealing with unlicensed
contractors in Florida.
Consumers must prove the contractor's license was revoked to seek
damages.
Consumers can seek compensation for damages if injured due to
the actions of unlicensed contractors.
Consumers are not entitled to any legal recourse against unlicensed
contractors.
Consumers can only receive a partial refund for services rendered.
8. Which is true regarding a general contractor who is constructing new site
development work, including a sanitary sewer collection system and water
distribution system, but not including continuation of electric utility lines?
the general contractor must hire a plumbing subcontractor
the general contractor must hire a speciality subcontractor
the general contractor must hire an underground utility subcontractor
the general contractor may do the work himself
9. Describe how effective inventory control can impact a contractor's financial
management.
Effective inventory control only affects material handling processes.
Effective inventory control increases waste and handling costs.
, Effective inventory control leads to decreased costs and improved
cash flow.
Effective inventory control has no impact on financial management.
10. Changes orders should include:
names and addresses of the contracting parties
detailed description of the changes
schedule impact of the changes
cost impact of the changes
signatures
all of the above
11. After bid, a GC discovers that due to this error, his bid is too low by
$500,000. This error results in the GC's bid being lower than the next lowest
bid by $550,000. The owner and architect should:
Allow the GC to withdraw with no penalty
Correct the contract docs to eliminate all possible misunderstanding
and rebid
Offer the erring bidder the contract sum for the amount of the
original bid, retain the bid security if the gc refuses to enter
contract for that sum
Allow the GC to increase his bid by 500k and award the contract on
the basic that this GC is still the lowest
12. Describe the significance of obtaining permits before signing a contract in
the context of Florida construction regulations.
Permits are only necessary for large projects, not for smaller ones.
2026| Latest Update | Graded A+
1. Describe the significance of the net worth to total assets ratio in the context
of a contractor's financial health.
The ratio measures the contractor's ability to pay subcontractors.
The net worth to total assets ratio indicates the proportion of a
contractor's assets that are financed by their own equity.
The ratio shows how much debt a contractor has compared to their
assets.
It reflects the total revenue generated by a contractor's projects.
2. When is a general contractor not required to subcontract the continuations of
utility line from the mains?
Airport
Single family homes
Hotels
Mobile home parks
3. According to the AIA, what are shop drawings, product data, and samples
classified as?
Submittals
Contracts
Change orders
Specifications
,4. If a contractor has a significant amount of taxes payable classified as current
liabilities, how might this affect their financial decisions in a construction
project?
It has no effect on financial decisions as taxes are not a priority.
It allows the contractor to invest more in new projects without
concern.
It may lead to prioritizing cash reserves to meet tax obligations
before other expenses.
It encourages the contractor to take on more subcontractors to
spread out costs.
5. What is the definition of a construction change directive as per AIA
guidelines?
A construction change directive is a written order to the contractor
to make a change in the work without the prior agreement of the
contractor on the adjustment in the contract sum or the contract
time.
A construction change directive is a document that outlines the
responsibilities of subcontractors.
A construction change directive is a notification of project
completion.
A construction change directive is a formal request for additional
funds from the client.
6. Describe how a cost plus contract differs from a fixed-price contract.
A cost plus contract reimburses actual costs and includes a fee,
while a fixed-price contract has a set price regardless of actual
costs.
, A fixed-price contract allows for unlimited changes without cost
implications.
A cost plus contract requires no documentation of expenses.
A cost plus contract is always cheaper than a fixed-price contract.
7. Describe the legal implications for consumers when dealing with unlicensed
contractors in Florida.
Consumers must prove the contractor's license was revoked to seek
damages.
Consumers can seek compensation for damages if injured due to
the actions of unlicensed contractors.
Consumers are not entitled to any legal recourse against unlicensed
contractors.
Consumers can only receive a partial refund for services rendered.
8. Which is true regarding a general contractor who is constructing new site
development work, including a sanitary sewer collection system and water
distribution system, but not including continuation of electric utility lines?
the general contractor must hire a plumbing subcontractor
the general contractor must hire a speciality subcontractor
the general contractor must hire an underground utility subcontractor
the general contractor may do the work himself
9. Describe how effective inventory control can impact a contractor's financial
management.
Effective inventory control only affects material handling processes.
Effective inventory control increases waste and handling costs.
, Effective inventory control leads to decreased costs and improved
cash flow.
Effective inventory control has no impact on financial management.
10. Changes orders should include:
names and addresses of the contracting parties
detailed description of the changes
schedule impact of the changes
cost impact of the changes
signatures
all of the above
11. After bid, a GC discovers that due to this error, his bid is too low by
$500,000. This error results in the GC's bid being lower than the next lowest
bid by $550,000. The owner and architect should:
Allow the GC to withdraw with no penalty
Correct the contract docs to eliminate all possible misunderstanding
and rebid
Offer the erring bidder the contract sum for the amount of the
original bid, retain the bid security if the gc refuses to enter
contract for that sum
Allow the GC to increase his bid by 500k and award the contract on
the basic that this GC is still the lowest
12. Describe the significance of obtaining permits before signing a contract in
the context of Florida construction regulations.
Permits are only necessary for large projects, not for smaller ones.
