Florida General Contractor Exam 2026 – 192 Practice Questions
with Answers & Detailed Rationales, Business & Finance, Contract
Administration, Project Management, Construction Methods, Codes
& Safety
PART 1: BUSINESS & FINANCIAL MANAGEMENT (64 Questions)
Question 1
A general contractor's income statement shows gross revenue of $2,400,000, direct job costs
of $1,680,000, and total overhead expenses of $480,000. What is the company's net profit
margin?
A. 8.0%
B. 10.0%
C. 12.0%
D. 20.0%
Correct Answer: B
Explanation: Net profit = $2,400,000 − $1,680,000 − $480,000 = $240,000. Net margin =
$240,000 ÷ $2,400,000 = 10%.
Question 2
Under Florida lien law, a subcontractor who is not in privity with the owner must serve a
Notice to Owner within what timeframe after first furnishing labor or materials?
A. 30 days
B. 45 days
C. 60 days
D. 90 days
,Correct Answer: B
Explanation: Florida Statute § 713.06 requires non-privity lienors to serve an NTO within 45
days of first furnishing. Late service typically invalidates lien rights .
Question 3
A contractor computes a 15% overhead and profit markup on direct costs for a project
estimated at $850,000. During construction, change orders totaling $75,000 in direct costs
are approved. What is the total adjusted contract amount?
A. $925,000
B. $976,250
C. $1,011,250
D. $1,063,750
Correct Answer: C
Explanation: Base: $850,000 × 1.15 = $977,500. Change: $75,000 × 1.15 = $86,250. Total =
$977,500 + $86,250 = $1,063,750.
Question 4
Which business structure provides pass-through taxation while offering liability protection to
its owners?
A. Sole proprietorship
B. General partnership
C. S corporation
D. C corporation
,Correct Answer: C
Explanation: S corporations avoid double taxation (pass-through) while providing limited
liability. Sole proprietorships and general partnerships offer no liability shield; C corporations
face double taxation.
Question 5
An applicant for a Certified General Contractor license in Florida must document how many
years of construction experience?
A. Two years
B. Three years
C. Four years
D. Five years
Correct Answer: C
Explanation: DBPR requires four years of experience or a combination of college education
and experience. Military construction experience may count toward this requirement .
Question 6
A contractor's workers' compensation experience modification rate (EMR) is 1.35. This
indicates the contractor's:
A. Safety record is better than industry average
B. Safety record is worse than industry average
C. Premium will be lower than standard
D. Insurance is provided by the state
, Correct Answer: B
Explanation: An EMR above 1.0 indicates higher-than-average losses, resulting in higher
workers' compensation premiums. An EMR below 1.0 reflects better-than-average safety
performance.
Question 7
Which financial statement reports a company's assets, liabilities, and equity at a specific
point in time?
A. Income statement
B. Balance sheet
C. Cash flow statement
D. Statement of retained earnings
Correct Answer: B
Explanation: The balance sheet presents the accounting equation (Assets = Liabilities +
Equity) as of a specific date. The income statement covers a period, not a point in time.
Question 8
A contractor bills a project using the percentage-of-completion method. The contract is
$1,200,000. Costs incurred to date are $360,000; estimated total costs are $900,000. What
revenue should be recognized?
A. $360,000
B. $420,000
C. $480,000
D. $540,000
with Answers & Detailed Rationales, Business & Finance, Contract
Administration, Project Management, Construction Methods, Codes
& Safety
PART 1: BUSINESS & FINANCIAL MANAGEMENT (64 Questions)
Question 1
A general contractor's income statement shows gross revenue of $2,400,000, direct job costs
of $1,680,000, and total overhead expenses of $480,000. What is the company's net profit
margin?
A. 8.0%
B. 10.0%
C. 12.0%
D. 20.0%
Correct Answer: B
Explanation: Net profit = $2,400,000 − $1,680,000 − $480,000 = $240,000. Net margin =
$240,000 ÷ $2,400,000 = 10%.
Question 2
Under Florida lien law, a subcontractor who is not in privity with the owner must serve a
Notice to Owner within what timeframe after first furnishing labor or materials?
A. 30 days
B. 45 days
C. 60 days
D. 90 days
,Correct Answer: B
Explanation: Florida Statute § 713.06 requires non-privity lienors to serve an NTO within 45
days of first furnishing. Late service typically invalidates lien rights .
Question 3
A contractor computes a 15% overhead and profit markup on direct costs for a project
estimated at $850,000. During construction, change orders totaling $75,000 in direct costs
are approved. What is the total adjusted contract amount?
A. $925,000
B. $976,250
C. $1,011,250
D. $1,063,750
Correct Answer: C
Explanation: Base: $850,000 × 1.15 = $977,500. Change: $75,000 × 1.15 = $86,250. Total =
$977,500 + $86,250 = $1,063,750.
Question 4
Which business structure provides pass-through taxation while offering liability protection to
its owners?
A. Sole proprietorship
B. General partnership
C. S corporation
D. C corporation
,Correct Answer: C
Explanation: S corporations avoid double taxation (pass-through) while providing limited
liability. Sole proprietorships and general partnerships offer no liability shield; C corporations
face double taxation.
Question 5
An applicant for a Certified General Contractor license in Florida must document how many
years of construction experience?
A. Two years
B. Three years
C. Four years
D. Five years
Correct Answer: C
Explanation: DBPR requires four years of experience or a combination of college education
and experience. Military construction experience may count toward this requirement .
Question 6
A contractor's workers' compensation experience modification rate (EMR) is 1.35. This
indicates the contractor's:
A. Safety record is better than industry average
B. Safety record is worse than industry average
C. Premium will be lower than standard
D. Insurance is provided by the state
, Correct Answer: B
Explanation: An EMR above 1.0 indicates higher-than-average losses, resulting in higher
workers' compensation premiums. An EMR below 1.0 reflects better-than-average safety
performance.
Question 7
Which financial statement reports a company's assets, liabilities, and equity at a specific
point in time?
A. Income statement
B. Balance sheet
C. Cash flow statement
D. Statement of retained earnings
Correct Answer: B
Explanation: The balance sheet presents the accounting equation (Assets = Liabilities +
Equity) as of a specific date. The income statement covers a period, not a point in time.
Question 8
A contractor bills a project using the percentage-of-completion method. The contract is
$1,200,000. Costs incurred to date are $360,000; estimated total costs are $900,000. What
revenue should be recognized?
A. $360,000
B. $420,000
C. $480,000
D. $540,000
