FLORIDA CONSTRUCTION INDUSTRY
LICENSING BOARD BUILDING
CONTRACTOR PROJECT MANAGEMENT
EXAM WITH QUESTIONS AND VERIFIED
ANSWERS, PLUS DETAILED
RATIONALES/EXPERT VERIFIED FOR
GUARANTEED PASS 2026/LATEST
UPDATE/INSTANT DOWNLOAD PDF
1. A building contractor is preparing the baseline schedule for a
commercial project. The foundation excavation cannot begin until
the site clearing operation is complete, and the concrete foundation
cannot begin until excavation and subgrade preparation are
complete. Which scheduling concept best describes these
relationships?
A. Finish-to-finish relationship
B. Start-to-start relationship
C. Finish-to-start relationship
D. Start-to-finish relationship
Answer: C. Finish-to-start relationship
Rationale: A finish-to-start relationship means the predecessor activity
must finish before the successor activity can start. In this example, site
clearing must be completed before excavation begins, and
excavation/subgrade preparation must be completed before foundation
work can start. Proper identification of predecessor-successor
relationships is essential when developing a realistic construction
schedule because delaying a predecessor can directly delay the
successor and potentially affect the project's critical path.
1
,2. A contractor is reviewing a project schedule and identifies a
sequence consisting of excavation, foundations, structural framing,
roofing, and building dry-in. The sequence has zero total float.
What is the most appropriate interpretation?
A. The activities are optional activities
B. The sequence is part of the critical path
C. The activities have unlimited scheduling flexibility
D. The sequence represents only subcontractor activities
Answer: B. The sequence is part of the critical path
Rationale: The critical path is generally the longest path through the
project network and determines the minimum project duration.
Activities on the critical path typically have zero total float, meaning a
delay in one of those activities, if not recovered elsewhere, can delay
the project's completion. A project manager should monitor critical-
path activities closely because they represent the greatest schedule risk.
3. A contractor's original estimate for a project is $2,400,000.
During construction, approved changes increase the contract value
by $150,000, while a negotiated credit decreases it by $50,000. What
is the revised contract amount?
A. $2,350,000
B. $2,450,000
C. $2,500,000
D. $2,600,000
Answer: B. $2,500,000
Rationale: The revised contract value is calculated by adding approved
increases and subtracting approved credits: $2,400,000 + $150,000 −
$50,000 = $2,500,000. Project managers must maintain accurate
2
,change-order logs because the contract amount, projected revenue,
remaining cost, retainage, and expected profit can all be affected by
approved changes.
4. A contractor has estimated direct project costs of $1,800,000 and
project-specific indirect costs of $200,000. The contractor wants a
10% markup calculated on total cost. What should the contract
price be?
A. $2,000,000
B. $2,020,000
C. $2,200,000
D. $2,222,222
Answer: C. $2,200,000
Rationale: Total cost is $1,800,000 + $200,000 = $2,000,000. A 10%
markup on that cost is $200,000. Therefore, the contract price is
$2,200,000. The question specifies markup on cost, which differs from
a profit margin calculated as a percentage of the selling price.
Confusing markup and margin can materially distort a contractor's
bid.
5. A project manager receives a subcontractor invoice showing
$180,000 of completed work. The subcontract contains a 10%
retainage provision. Assuming no previous retainage has been
withheld on this amount, how much should be retained?
A. $10,000
B. $18,000
C. $20,000
D. $162,000
Answer: B. $18,000
3
, Rationale: Ten percent of $180,000 is $18,000. The amount potentially
payable before other adjustments would therefore be $162,000.
Retainage is commonly used as a contractual mechanism to withhold a
portion of progress payments until specified contractual requirements
are satisfied. The project manager should verify the contract before
calculating or releasing retainage because the applicable percentage
and release conditions depend on the agreement and governing
requirements.
6. A contractor notices that the quantity of concrete required for a
footing is substantially greater than the quantity shown in the
original estimate. Before proceeding with a substantial additional
expenditure, what should the project manager do first?
A. Automatically bill the owner
B. Ignore the difference because concrete is a direct cost
C. Verify the plans, specifications, field conditions, measurements, and
contract requirements
D. Reduce the concrete strength to control costs
Answer: C. Verify the plans, specifications, field conditions,
measurements, and contract requirements
Rationale: A significant quantity discrepancy should first be
investigated. The project manager should compare drawings,
specifications, takeoffs, approved revisions, field measurements, and
actual conditions to determine why the variance exists. Proceeding
without verification can create unnecessary costs, disputes, or
defective work.
7. During construction, the owner asks the contractor to relocate
several interior walls and add electrical outlets. The requested work
4
LICENSING BOARD BUILDING
CONTRACTOR PROJECT MANAGEMENT
EXAM WITH QUESTIONS AND VERIFIED
ANSWERS, PLUS DETAILED
RATIONALES/EXPERT VERIFIED FOR
GUARANTEED PASS 2026/LATEST
UPDATE/INSTANT DOWNLOAD PDF
1. A building contractor is preparing the baseline schedule for a
commercial project. The foundation excavation cannot begin until
the site clearing operation is complete, and the concrete foundation
cannot begin until excavation and subgrade preparation are
complete. Which scheduling concept best describes these
relationships?
A. Finish-to-finish relationship
B. Start-to-start relationship
C. Finish-to-start relationship
D. Start-to-finish relationship
Answer: C. Finish-to-start relationship
Rationale: A finish-to-start relationship means the predecessor activity
must finish before the successor activity can start. In this example, site
clearing must be completed before excavation begins, and
excavation/subgrade preparation must be completed before foundation
work can start. Proper identification of predecessor-successor
relationships is essential when developing a realistic construction
schedule because delaying a predecessor can directly delay the
successor and potentially affect the project's critical path.
1
,2. A contractor is reviewing a project schedule and identifies a
sequence consisting of excavation, foundations, structural framing,
roofing, and building dry-in. The sequence has zero total float.
What is the most appropriate interpretation?
A. The activities are optional activities
B. The sequence is part of the critical path
C. The activities have unlimited scheduling flexibility
D. The sequence represents only subcontractor activities
Answer: B. The sequence is part of the critical path
Rationale: The critical path is generally the longest path through the
project network and determines the minimum project duration.
Activities on the critical path typically have zero total float, meaning a
delay in one of those activities, if not recovered elsewhere, can delay
the project's completion. A project manager should monitor critical-
path activities closely because they represent the greatest schedule risk.
3. A contractor's original estimate for a project is $2,400,000.
During construction, approved changes increase the contract value
by $150,000, while a negotiated credit decreases it by $50,000. What
is the revised contract amount?
A. $2,350,000
B. $2,450,000
C. $2,500,000
D. $2,600,000
Answer: B. $2,500,000
Rationale: The revised contract value is calculated by adding approved
increases and subtracting approved credits: $2,400,000 + $150,000 −
$50,000 = $2,500,000. Project managers must maintain accurate
2
,change-order logs because the contract amount, projected revenue,
remaining cost, retainage, and expected profit can all be affected by
approved changes.
4. A contractor has estimated direct project costs of $1,800,000 and
project-specific indirect costs of $200,000. The contractor wants a
10% markup calculated on total cost. What should the contract
price be?
A. $2,000,000
B. $2,020,000
C. $2,200,000
D. $2,222,222
Answer: C. $2,200,000
Rationale: Total cost is $1,800,000 + $200,000 = $2,000,000. A 10%
markup on that cost is $200,000. Therefore, the contract price is
$2,200,000. The question specifies markup on cost, which differs from
a profit margin calculated as a percentage of the selling price.
Confusing markup and margin can materially distort a contractor's
bid.
5. A project manager receives a subcontractor invoice showing
$180,000 of completed work. The subcontract contains a 10%
retainage provision. Assuming no previous retainage has been
withheld on this amount, how much should be retained?
A. $10,000
B. $18,000
C. $20,000
D. $162,000
Answer: B. $18,000
3
, Rationale: Ten percent of $180,000 is $18,000. The amount potentially
payable before other adjustments would therefore be $162,000.
Retainage is commonly used as a contractual mechanism to withhold a
portion of progress payments until specified contractual requirements
are satisfied. The project manager should verify the contract before
calculating or releasing retainage because the applicable percentage
and release conditions depend on the agreement and governing
requirements.
6. A contractor notices that the quantity of concrete required for a
footing is substantially greater than the quantity shown in the
original estimate. Before proceeding with a substantial additional
expenditure, what should the project manager do first?
A. Automatically bill the owner
B. Ignore the difference because concrete is a direct cost
C. Verify the plans, specifications, field conditions, measurements, and
contract requirements
D. Reduce the concrete strength to control costs
Answer: C. Verify the plans, specifications, field conditions,
measurements, and contract requirements
Rationale: A significant quantity discrepancy should first be
investigated. The project manager should compare drawings,
specifications, takeoffs, approved revisions, field measurements, and
actual conditions to determine why the variance exists. Proceeding
without verification can create unnecessary costs, disputes, or
defective work.
7. During construction, the owner asks the contractor to relocate
several interior walls and add electrical outlets. The requested work
4
