FLORIDA CONSTRUCTION INDUSTRY
LICENSING BOARD BUILDING
CONTRACTOR CONTRACT
ADMINISTRATION EXAM WITH QUESTIONS
AND VERIFIED ANSWERS, PLUS DETAILED
RATIONALES/EXPERT VERIFIED FOR
GUARANTEED PASS 2026/LATEST
UPDATE/INSTANT DOWNLOAD PDF
1. A Florida building contractor enters into a written contract with an
owner for construction of a new commercial building. The contract
specifies a fixed contract price, identifies the scope of work,
establishes progress-payment milestones, and states that changes
must be authorized in writing. During construction, the owner
verbally instructs the contractor to add substantial work. The
contractor performs the work without obtaining a written change
order. The owner later refuses to pay for the additional work.
Which is the contractor's strongest contractual argument?
A. The contractor is automatically entitled to payment because the
owner verbally requested the work.
B. The contractor may establish entitlement based on the owner's
conduct, authorization, and applicable contract law, but the absence of
the required written change order substantially weakens the claim.
C. Any additional work performed by a licensed contractor must
automatically be paid at cost plus 20%.
D. Florida construction contracts cannot require written change orders.
Answer: B
1
,Rationale: Contract administration requires strict attention to the
written agreement. If the contract requires written authorization for
changes, performing extra work based solely on an oral instruction
creates substantial evidentiary and payment risk. The contractor may
still have arguments based on authorization, waiver, equitable
principles, or the owner's conduct depending on the circumstances,
but there is no automatic entitlement simply because the owner
verbally requested the work.
2. A contractor's contract contains a provision stating that the
contractor must provide written notice of a differing site condition
within seven days after discovering it. The contractor discovers
unexpected subsurface rock but waits 30 days before notifying the
owner. The rock condition causes significant additional excavation
costs. What is the primary contract-administration issue?
A. Whether the contractor is still required to obtain a building permit.
B. Whether failure to provide timely notice bars or limits the contractor's
contractual claim for additional compensation or time.
C. Whether the owner must immediately terminate the contractor.
D. Whether the contractor may increase its markup without notifying the
owner.
Answer: B
Rationale: Notice provisions are critical risk-management
mechanisms in construction contracts. A differing site condition
clause commonly requires prompt written notice so the owner can
investigate the condition, verify its existence, evaluate alternatives, and
preserve evidence. Failure to comply with the contractual notice period
can jeopardize entitlement to additional time or compensation, subject
to the specific contract and applicable law.
3. A construction contract requires monthly applications for payment.
The contractor submits an application showing $250,000 of
2
, completed work, but the architect determines that only $220,000
has been properly completed and documented. What should the
contractor primarily do?
A. Demand immediate payment of the entire $250,000.
B. Review the payment documentation, reconcile the disputed quantities,
and resolve the difference through the contract's payment-dispute
procedures.
C. Stop all construction immediately without giving notice.
D. Invoice the owner for twice the disputed amount.
Answer: B
Rationale: Contract administration requires payment applications to
be supported by accurate quantities, schedules of values, stored-
material documentation, approved changes, and other required
records. When the certifying party disagrees with the amount, the
appropriate response is reconciliation and use of the contractual
dispute process rather than unilateral suspension or unsupported
billing.
4. An owner requests a change that will increase the contract price by
$80,000 and extend the schedule by 25 days. Which document is
generally the best method for formally incorporating the change
into the contract?
A. An informal text message from the superintendent.
B. A written change order or other contractually authorized change
document.
C. A new employee time sheet.
D. A material delivery ticket.
Answer: B
Rationale: A properly executed change order documents the revised
scope, price adjustment, schedule adjustment, and other relevant
3
, conditions. It protects both parties by establishing a clear record of
what was changed and what compensation or time adjustment was
agreed upon.
5. A contractor's schedule shows that a subcontractor is scheduled to
complete masonry work by June 1. The subcontractor is
significantly behind schedule and is preventing interior framing
from beginning. What is the most appropriate initial contract-
administration response?
A. Ignore the delay until substantial completion.
B. Document the delay, determine responsibility and contractual
consequences, and issue appropriate notice while coordinating recovery
measures.
C. Automatically terminate the subcontractor without reviewing the
subcontract.
D. Bill the owner for all delay costs regardless of responsibility.
Answer: B
Rationale: Delay administration begins with documentation and
identification of responsibility. The contractor should examine the
subcontract, schedule, notice provisions, critical-path impact,
mitigation obligations, and potential damages. Premature termination
or unsupported billing can create additional liability.
6. A contractor discovers that an owner-approved design contains a
dimensional conflict between architectural and structural drawings.
What should the contractor do before proceeding with affected
work?
A. Select whichever dimension is cheapest.
B. Ignore the conflict and construct according to the first drawing
received.
C. Request clarification through the contractually established
4
LICENSING BOARD BUILDING
CONTRACTOR CONTRACT
ADMINISTRATION EXAM WITH QUESTIONS
AND VERIFIED ANSWERS, PLUS DETAILED
RATIONALES/EXPERT VERIFIED FOR
GUARANTEED PASS 2026/LATEST
UPDATE/INSTANT DOWNLOAD PDF
1. A Florida building contractor enters into a written contract with an
owner for construction of a new commercial building. The contract
specifies a fixed contract price, identifies the scope of work,
establishes progress-payment milestones, and states that changes
must be authorized in writing. During construction, the owner
verbally instructs the contractor to add substantial work. The
contractor performs the work without obtaining a written change
order. The owner later refuses to pay for the additional work.
Which is the contractor's strongest contractual argument?
A. The contractor is automatically entitled to payment because the
owner verbally requested the work.
B. The contractor may establish entitlement based on the owner's
conduct, authorization, and applicable contract law, but the absence of
the required written change order substantially weakens the claim.
C. Any additional work performed by a licensed contractor must
automatically be paid at cost plus 20%.
D. Florida construction contracts cannot require written change orders.
Answer: B
1
,Rationale: Contract administration requires strict attention to the
written agreement. If the contract requires written authorization for
changes, performing extra work based solely on an oral instruction
creates substantial evidentiary and payment risk. The contractor may
still have arguments based on authorization, waiver, equitable
principles, or the owner's conduct depending on the circumstances,
but there is no automatic entitlement simply because the owner
verbally requested the work.
2. A contractor's contract contains a provision stating that the
contractor must provide written notice of a differing site condition
within seven days after discovering it. The contractor discovers
unexpected subsurface rock but waits 30 days before notifying the
owner. The rock condition causes significant additional excavation
costs. What is the primary contract-administration issue?
A. Whether the contractor is still required to obtain a building permit.
B. Whether failure to provide timely notice bars or limits the contractor's
contractual claim for additional compensation or time.
C. Whether the owner must immediately terminate the contractor.
D. Whether the contractor may increase its markup without notifying the
owner.
Answer: B
Rationale: Notice provisions are critical risk-management
mechanisms in construction contracts. A differing site condition
clause commonly requires prompt written notice so the owner can
investigate the condition, verify its existence, evaluate alternatives, and
preserve evidence. Failure to comply with the contractual notice period
can jeopardize entitlement to additional time or compensation, subject
to the specific contract and applicable law.
3. A construction contract requires monthly applications for payment.
The contractor submits an application showing $250,000 of
2
, completed work, but the architect determines that only $220,000
has been properly completed and documented. What should the
contractor primarily do?
A. Demand immediate payment of the entire $250,000.
B. Review the payment documentation, reconcile the disputed quantities,
and resolve the difference through the contract's payment-dispute
procedures.
C. Stop all construction immediately without giving notice.
D. Invoice the owner for twice the disputed amount.
Answer: B
Rationale: Contract administration requires payment applications to
be supported by accurate quantities, schedules of values, stored-
material documentation, approved changes, and other required
records. When the certifying party disagrees with the amount, the
appropriate response is reconciliation and use of the contractual
dispute process rather than unilateral suspension or unsupported
billing.
4. An owner requests a change that will increase the contract price by
$80,000 and extend the schedule by 25 days. Which document is
generally the best method for formally incorporating the change
into the contract?
A. An informal text message from the superintendent.
B. A written change order or other contractually authorized change
document.
C. A new employee time sheet.
D. A material delivery ticket.
Answer: B
Rationale: A properly executed change order documents the revised
scope, price adjustment, schedule adjustment, and other relevant
3
, conditions. It protects both parties by establishing a clear record of
what was changed and what compensation or time adjustment was
agreed upon.
5. A contractor's schedule shows that a subcontractor is scheduled to
complete masonry work by June 1. The subcontractor is
significantly behind schedule and is preventing interior framing
from beginning. What is the most appropriate initial contract-
administration response?
A. Ignore the delay until substantial completion.
B. Document the delay, determine responsibility and contractual
consequences, and issue appropriate notice while coordinating recovery
measures.
C. Automatically terminate the subcontractor without reviewing the
subcontract.
D. Bill the owner for all delay costs regardless of responsibility.
Answer: B
Rationale: Delay administration begins with documentation and
identification of responsibility. The contractor should examine the
subcontract, schedule, notice provisions, critical-path impact,
mitigation obligations, and potential damages. Premature termination
or unsupported billing can create additional liability.
6. A contractor discovers that an owner-approved design contains a
dimensional conflict between architectural and structural drawings.
What should the contractor do before proceeding with affected
work?
A. Select whichever dimension is cheapest.
B. Ignore the conflict and construct according to the first drawing
received.
C. Request clarification through the contractually established
4
