FLORIDA CONTRACTORS MANUEL 2024 WITH ACTUAL CORRECT QUESTIONS AND VERIFIED DETAILED ANSW, Exams of Business Economics

Download FLORIDA CONTRACTORS MANUEL 2024 WITH ACTUAL CORRECT QUESTIONS AND VERIFIED DETAILED ANSW and more Exams Business Economics in PDF only on Docsity! 1 | P a g e FLORIDA CONTRACTORS MANUEL 2024 WITH ACTUAL CORRECT QUESTIONS AND VERIFIED DETAILED ANSWERS WITH (2 LATEST VERSIONS A&B) |FREQUENTLY TESTED QUESTIONS AND SOLUTIONS |ALREADY GRADED A+|BRAND NEW!!|GUARANTEED PASS |LATEST UPDATE VERSION A What are the two types of partnerships? General partnership and limited partnership What is the difference between a partnership and a joint venture? The joint venture is usually limited to a single transaction What three categories are used to determine whether a person is classified as an independent contractor or an employee? Behavioral, Financial, and Type of Relationship Under what state statue would an applicant locate the information to determine whether they might receive credit for relevant military service? 489.1131 If there is a belief that a licensee may have committed a violation of part 1, chapter 489, F.S., Chapter 455, F.S, who makes the determination whether the violation occurred? The probable cause panel What is the fine for failure to timely obtain a permit? $100 2 | P a g e If a septic tank contractor installs a septic system and applies for a permit after the work is completed without inspections, what would the penalty be if they are a repeat offender? Repeat violation results in revocation In the practice of accounting, debit and credit refer to what? The left and right sides of an account How could a partnership resolve a potential dispute over control of the business? Through a partnership agreement A person who engages in contracting services or holding oneself out to be a contractor without first obtaining a license is guilty of a ______ for a first offense? First-degree misdemeanor How long must a contractor maintain complete financial and business records? Three years How many hours of continuing education is a contractor required to take for license renewal? 14 hours every two years What is the maximum administrative fine that may be imposed on any unlicensed person found guilty of unlicensed? $10,000 According to the Florida Administrative code, what is the minimum clear height of a "story"? 7 feet or more What does the term "call verification method" refer to? The monitoring facility personnel making two or more attempts to make contact prior to dispatch What is the fee for a site evaluation by the County Department of Health? $115 A statement which shows the earnings earned over any particular period of time is called an ____? Income statement What type of business structure should be formed for a single transaction with two or more entities seeking a profit? Joint venture Where is a licensed contractor required to place the state issued license number? On all building permits & any advertisements including vehicles 5 | P a g e Which Florida Statute provides for the license & regulation of all contractors? Chapter 489 What are the responsibilities of the professional boards? Determine licensing eligibility, investigate complaints against licensees and take disciplinary action Where can a registered contractor perform work? In the jurisdiction that issued the license or in areas that recognize the certification Where may a certified contractor work? In any city, county or district in the state To become licensed as a certified construction contractor, an applicant must submit an application and pass an examination administered by? Department of business and professional regulation What is the minimum age for obtaining a contractor's license? 18 What happens if an applicant for a certified Electrical or Alarm system contractor fails the test three times? They must complete additional courses in the areas of deficiency, submit new application and pay appropriate fees What is required for an employee of a licensed plumber working on a medical gas installation? 8-hours of both classroom and practical work medical gas course Division I applicants that cannot demonstrate a credit score, FICO of 660 or higher must provide a financial stability bond or irrevocable letter of credit in what amount? $20,000 How can an applicant that is required to supply a financial stability bond or letter of credit reduce the amount? By completing a 14-hour financial responsibility course approved by the board How does a sole proprietorship, partner or corporate officer in a business actively engaged in the construction industry become exempt from the provisions of the workers' compensation? By filing a Construction Industry Notice of Election to be Exempt with the Division of Workers' Compensation of the Department of Labor and Employment Security What are the minimum amounts of public liability and property damage insurance a general or building contractor must have? $300,000 liability/ $50,000 property damage 6 | P a g e _____ measure of how much money the company owes to others that must be paid within 1 year? Current liabilities When are "operating expenses" incurred? While providing the goods or services the company sells Expenses incurred in the administration of the business that do not particularly relate to providing particular goods or services are knows as ___? Administrative expenses What type of expense is insurance considered? Prepaid expenses Allocating the cost of a piece of equipment over its useful life is __? Depreciation What is "MACRS" and what is it used for? Modified Accelerated Cost Recovery System and it's a used asset depreciation cost recovery How can a contractor expense an automobile that is used wholly or partially for business purposes without the complexity of keeping track of an automobile expenses and computing annual depreciation deductions? Tracking mileage used in the course of business and the applicable IRS mileage deduction rate How much can be deducted on a depreciating luxury vehicle on year 3 if it was used for business only 80% of the time? $7,760 ____ is another way of saying "depreciation" and implies that the cost of an item is written off in equal amounts over a period of time. Amortization What is the process called when a lengthy journal entry is made which makes the revenue and expense account balances go to zero, takes what is left over (the year's income) and makes it a new account under equity on the balance sheet called previous years earnings? Closing the books Corporations may pay owners dividends in stock, a dividend that is usually fixed in amount or percent is know as ______. Preferred stock The open invoice method provides sufficient detail to allow you to take advantage of ___ offered by suppliers for early payment of their invoices. 7 | P a g e Discounts If an employee worked 10 hours of overtime and is paid $20 per hour, how much would they have earned before taxes for one week? $1,100 What is the percentage of social security and medicare tax rate on a wage base of $118,500? 7.65 How much does an employee have to earn before an employer can stop paying FUTA for the year? $7,000 All employers are required to make contributions to the ___ plan and the ___ ? Federal Unemployment Tax Act & State Unemployment tax act Capital needs can be divided into __ basic stages Three months to one year How many months of "start-up" capital is recommended when starting a business to cover expenses? Three months to one year The need for capital in starting and operating a business can be divided into what three key stages? Start up costs, working capital, expansion Starting capital is the amount of money needed to get the business underway and should be enough to cover expenses for ___ Three months to one year ___ working capital needs are those costs associated with doing business Day-to-day When would a company want to use the fourth type of capital called "debt restructuring"? In the case of a financially distressed business A loan paid in one payment which covers the principal and interest at the maturity date of the loan is a ___ Single payment loan ___ require the lending institution to disclose the effective annual interest rate to a borrower Truth in Lending Laws Payroll taxes, benefits for direct labor, construction supervision, temporary costs, miscellaneous job clean up costs are examples of ___ 10 | P a g e To protect the business from any loss incurred by the organization which causes a decrease in revenues or increase in expenses Financial Loss ________ provides protection to the organization for bodily injury and property damage liability losses, personal injury and fire damage liability. Commercial General Liability What are the two most common contractual liability exculpatory clauses? Indemnification and hold-harmless What insurance policy coverage would protect the organization if a claim was brought by an injured party that was involved with an employee's vehicle while in route to a material supplier for the employer? Business automobile liability with non-owned vehicle endorsement What liability coverage, if added to the commercial general liability policy, would cover a claim by an employee who was inadvertently left out of the group health plan? Employee benefits liability coverage National contracting services recently held interviews for a project manager. A month after hiring the successful candidate, they receive a claim from an applicant for discrimination. What liability policy would provide coverage to defend and pay for the claim? Employment practices liability policy What type of insurance product would a company add to their risk management plan to recover from financial losses due to the death of the contractor? Key man life insurance ow often should an employer review the driving records of an employee? Every six months or at least annually A __________ is a 3-party agreement whereby one party, the Surety, is bound with the person bonded, called the Principal, to a third party, called the Obligee. Surety Bond In 1894, Congress passed the Heard Act in response to concerns about contractors working on public projects becoming insolvent. Which act replaced it in 1935? Miller Act Surety bonds are required in order to protect the funds of the ___ in the event the contractor fails to perform the work Taxpayer or private owner 11 | P a g e What are the two types of bid bonds? Forfeiture obligation and difference in bid guarantee The ___ is a guarantee that if the contractor is awarded the bid, he will enter into a contract at the price stipulated in the bid proposal and will provide the required performance and payment bonds Bid bond ___ bonds provide that the contractor's work will be free from defects in materials and workmanship over a specified period of time set forth in the bond Maintenance What are the three "C"s of underwriting? Character, Capacity, Capital A legal document outlining who will assume the duty for completion of ongoing work and how they will be compensated in the event a principal becomes incapacitated is known as __ A continuity provision agreement What are the three methods used to prepare a financial statement? Audit, review or compilation Cash, Completed Contract, Pure Accrual, or Percentage of Completion are four methods of ______. Income recognition How much does "The SBA Bond Guaranty Program" charge the contractor per thousand? 7.29 The rights of employees to engage in concerted activity and to bargain collectively with a bargaining representative of their own choosing in private industries was created by means of the ___ Labor Management Relations Act What federal statue defined what must be considered as hours of work and the circumstances under which overtime pay must be paid? The Fair Labor Standards Act (FLSA-Wage and Hour Law) What act provides that contractors working on federal projects must pay their laborers and mechanics, wages and benefits found to be prevailing in that geographic locality? Davis-Bacon Act Under which Florida Law are Union Shop, Agency Shop and Maintenance of Membership agreements prohibited? Florida Right to Work Laws 12 | P a g e Who specifically does the Equal Pay Act protect? Female employees Who does the ADA protect? Employees with disabilities Which employment act promotes workplace safety? The Occupational Safety and Health Act (OSHA) Joe Smith applies for a job and the company obtains his credit report without his consent. What law has the company violated? The Fair Credit Reporting Act What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) provide to employees that have severed employment from a company? Continued health insurance coverage Per the FLSA, employers are required to keep "hard records" such as payroll, employment contracts/agreements, sales and purchase records for how long? Three years Children aged 16 and 17 may work in construction related operations but may not be involved in certain __ occupations at a construction site Particularly Hazardous What is the maximum penalty that can be imposed against an employer for violation of the child labor provisions, where no serious injury or death has occurred? Up to $11,000 per worker for each violation of the child labor provisions How long does someone have to file a charge with the EEOC from time of the alleged incident, if there are no state anti-discrimination laws? 180 days from the date of the alleged violation What actions does the Title VII of The Civil Rights Act of 1964 Prohibit? Employment Discrimination The age discrimination in employment act of 1967 protects people aged ___ and older 40 years A seniority or merit system, a system which measures earnings by quantity or quality of production, and a differential based on any factor than sex are disparities in pay are allowed under which labor act? Equal Pay Act of 1963 (EPA) 15 | P a g e What must the owner of any commercial or industrial structure, or any multi-unit residential structure of 3+ units, that uses light-frame truss type construction do to warn persons conducting fire control? Mark the structure with a sign or symbol approved by the State Fire Marshal The provision of partial, temporary income to workers who lose their jobs through no fault of their own and are and available for work is known as __ Reemployment assistance Who must file an Employer's Quarterly Report (RT-6)? An employer who employed ten or more employees in any quarter during the preceding state fiscal year What wages must be reported on an Employer's Quarterly Report (T-6)? Total wages paid to covered workers, excess wages, taxable wages, and tax due What is the reemployment tax rate for new employers? 2.70% What is the penalty for failure to file a reemployment tax report electronically? $25 per report and $1 for each employee What is the penalty for failure to report reemployment tax timely? $25 for each 30 days or fraction thereof What is maximum "reemployment tax rate" an employer can be charged? 5.40% If an employer has employees working in more than one state, what may be necessary the employer do for the purposes of FUTA? Register as an employer with another state's employment security agency ___ is a voluntary program that permits prorated reemployment assistance benefits to employees experiencing a reduction in hours for a portion of their workweek Short-Time Compensation What law effective July 1, 1935 has the intent to provide immediate and full payment of medical expenses and some coverage for loss of wages and rehabilitation benefits for workers? State workers' compensation For the purpose of Workers Compensation coverage, Sole Proprietors, Partners and Corporate Officers are considered employees. Construction limited liability company members are considered ___ Corporate Officers Who is required to provide workers compensation for the employees of a subcontractor? 16 | P a g e The general contractor What options are available, if the Contractor becomes liable to pay Workers' Compensation benefits for a subcontractor's employee? To recover from the subcontractor all benefits the contractor is required to pay plus interest A subcontractor who knowingly presents false information as to the existence of coverage when in fact there is none, commits a ___ A third-degree felony What allows for a group of employers pledging their individual assets to collectively guard against exposure for paying workers compensation benefits? A self insurance Pool If it can be established that the winner of a competitive bid knowingly violated the requirements to maintain proper workers' compensation coverage, what can the losing contractor do? Sue the person awarded the contract What can happen if the Florida Division of Workers' Compensation discover you have no coverage, even if a worker was not injured? Your business can be closed down What is one major consideration that could impact workers compensation? Knowing your employees and their limitations If a prospective employee lies on a pre-employment application about a prior medical problem and is subsequently injured, how would benefits be paid for workers compensation? Benefits can be denied If an employee dies on the job, what is the maximum amount paid to beneficiaries? Up to $150,000 in death benefits plus $7,500 in funeral costs What is the maximum weekly benefit that an employee who is injured on the job may be paid while unable to work? Two/thirds of his average or maximum of $863 What is the maximum possible reduction in workers compensation benefits if an employee fails to comply with safety rules and regulations? 25% After the report of an accident from an employee, how long does the contractor have to report it to the worker's comp carrier? Within seven days 17 | P a g e If a job site accident is not reported to the carrier within 7 days of notification, how much can the employer be fined? Up to $2,000 fine per occurrence How long must an employer retain a copy of all information, including all forms contained in the report accident? two years and six months What is the maximum penalty for violating any of the rule for reporting accidents? Up to $500 An injured employee is released by the doctor with limitations and is still unable to perform the job held at the time of injury. What happens to the employee until they can perform those duties? The employee may be able to perform another job What allows the treating physician to review the exact job being offered and give an opinion as to an injured employee's ability to perform it? Job descriptions What are two factors that impact the cost of workers compensation premiums? The size of payroll and the type of business (classification) Employers are classified by types of jobs their employees perform and are "__" per $100 of payroll Manually rated What is the term for how insurance company's rate or compare your business to other employers within your industry for workers' compensation coverage Experience modification factor What document must a person wishing to claim exemption provide to obtain or renew a "Certification of Exemption" for Workers compensation? A state driver license or Florida ID How many employees can construction company employee before workers' compensation is required? One or more full-time or part time employees Florida's workers compensation law does not allow for independent contractors in the construction industry. The person is either a ____ A business owner or an employee of a business What three factors determine the cost of Workers' compensation insurance? Payroll, type of work performed, employer's claims history 20 | P a g e In any dispute, the carrier or employee may select an "independent medical examiner." Who bears the cost for the examination? The party requesting and selecting the independent medical examination In the event of Permanent Total Disability, what compensation will the employee receive? 66% of the average weekly wages If an employee receives an impairment rating of 32%, how many weeks of benefits do they receive? 6 weeks If an employee dies within 2 years as the result of an accident, what is the maximum an employer pays for actual funeral expenses? $7,500 If an employer and employee reach an agreement to waive the employees right to workers' Compensation benefits, can the agreement be enforced? No, it is invalid Can child support or alimony be deducted from "workers' compensation" benefits? Yes, the claim of creditor exemption does not extend to child support or alimony payments Every employee engaged in construction work is entitled by law to a work place that is free of what three factors? Unsafe conditions, unsafe acts, and health hazards What OSHA form is used to record all incidents resulting in loss of consciousness, restriction of work or movement, lost work-days, or medical treatment? OSHA Form 300/300A Furnishing employees employment and a place of employment which is free from recognized hazards causing or likely to cause death or serious physical harm is a required under which OSHA clause? The general duty clause What is the fourth area responsibility for an employer per OSHA? OSHA posters must be posted on all job sites where all employees can see them Section 2(b) of the ___ describes its purpose as providing safe and healthful working conditions for every "working man and woman in the Nation" OSH Act What are the three groups that the "OSH Act" excludes? Religious establishments, Employers of household workers, Individuals who do not have "employees" 21 | P a g e The activities of what individuals are not covered by the Occupational Safety and Health Act? Self-employed An ___ is one who has the right to control and direct his employees, not only regarding the result to be accomplished by the work, but also as to the details and means by which the work objective is accomplished Employer Standard Industrial Classification (SIC) used to rate business risks and ___ for workers compensation, as well as liability and risk insurance Calculate premiums Most employers with no more than 10 employees are exempted from OSHA record keeping logs for injuries and illnesses, with the exemption of? Fatalities or multiple hospitalization accidents The ___ log is used for recording and classifying recordable occupational injuries and illnesses, and for noting the extent and outcome of each case OSHA No. 300/300A, OSHA 301 What are the three forms used for OSHA record Keeping? OSHA No. 300/300A, OSHA 301 In which OSHA form is the additional information entered describing how the accident occurred, listing the objects and substances involved, and indicating the nature of the injury or illness and the part(s) of the body affected? OSHA N0. 301 Where should the injury and illness record logs be kept for an employee not associated with a fixed establishment? At the field office or mobile base of operations or at an establishment How long must an employer retain required OSHA forms? 5 Calendar years following the period to which they relate Who is responsible for maintaining the injury and illness records for employees of other firms or independent contractors, that are temporarily at work in their establishment or on one of their job sites at the time of the injury or illness exposure occurs? The person who is employing those individuals Under the OSHA Act, ___ of an employee is any abnormal condition or disorder, other than one resulting from an occupational injury, caused by exposure to environmental factors associated with employment. 22 | P a g e Occupational illness Every occupational death, every nonfatal illness, and those nonfatal occupational injuries which involves loss of consciousness or medical treatment (other than first aid) is a ____ Recordable case How are lost days of work for an injured employee counted? By the number of calendar days the employee was unable to work as a result of the injury or illness What is the maximum allowable civil penalty for serious or other-than serious violations? $13,494 What is the maximum allowable civil penalty for willful or repeated violations? $134,937 ____ are those committed with an intentional disregard of, or plain indifference to, the requirements of the OSH Act and regulation? Willful violations What is the base penalty for failure to report a fatality or catastrophe within 8 hours? $13,494 If the contractor only partially abates a violation issued by OSHA within 30 days, how much can the penalty be reduced? By 20 percent to 40 percent What are the exceptions for the requirement of a protective systems when excavating? Where the excavation is in solid rock, nor in excavations that are less than 5 feet in depth How do the manufacturers of Manila rope used for hoisting identify first grade rope? By an identifying mark of some kind Why are synthetic fiber ropes generally not used in rigging? Because of their tendency to stretch under strain and their susceptibility to damage by heat flame and sparks What type of rope would you want to use in a rigging operation that could withstand severe shock loads? Nylon Rope When a rope is used for hoisting or supporting personnel, what safety factor must be used? A safety factor of "10" 25 | P a g e Flow Down Clause What does "incorporation by reference" mean? A document is incorporated by reference as if it were written within the signed document What is the clause in the contract that says the contractor agrees to indemnify, defend, and hold harmless the owner for any personal that may result from the work of the contractor? Indemnity clause Most contracts provide that the party performing the work must provide workers compensation and general liability insurance in stated limits. Under which clause would the details be found? Insurance clause Which Florida statue provides the right of any person who is considered being sued by an owner to receive a written notice of defects and have an opportunity to inspect and cure the alleged defect? Notice of defect and opportunity to cure (Chapter 558) Why would a business include an alternative dispute resolution process in their contracts? Litigation in court is expensive and time-consuming In the event of a contract dispute, who is the person often named as being the initial dispute resolver? The architect What are two benefits of using a "private trial resolution judge" for a contract dispute? The judge is knowledgeable about construction law and may be able to provide a hearing sooner than would be available in court What is the "statutes of limitation" for a written agreement in Florida? Five years How long can the "Statue of Response" extend the "Statue of Limitations" in the event of a latent defect? Not longer than 10 years from completion If the contract is breached for nonpayment of a material amount, by wrongful termination, or some other material breach, what is the contractor ( or subcontractor) permitted to do? Terminate the contract and recovered damages In a breach by the party performing the work, what are the damages that the paying party is entitled to recover? Costs in excess of the contract price that were, or can be proven will be, incurred to achieve full performance 26 | P a g e The lien on real property and the improvements for unpaid charges in making improvements to real property is defined as a ___ in Florida Construction lien What are the two elements of a construction lien? A debt incurred to improve property, and compliance with the procedure described in the statue When would a contract become void and prevent a contractor from filing a lien? If the work under the contract requires a license and the contractor does not have one What are three important pieces of information that "notice of commencement" provide? The name being improved , and if there is a payment bond What is the only exception that may affect lien rights on a property owned by married persons when only one person signs the contract? The non-signing spouse gives to the contractor and records in the clerk's office notice of his or her objection within ten days of learning of the contract If a contract price is under $2500, who is the only person that has lien rights? The contractor A source of project information for those who need to know information such as property description, property owner, and whether the job has a payment bond can be found in the ___ The notice of commencement When must the notice of commencement be recorded? Before construction starts, but not sooner than 90 days before construction starts How long is a Notice of Commencement effective unless otherwise noted? One year from date of recording If the owner of a project changes contractors, what must happen with the Notice of Commencement? It would require a new notice of commencement What happens if the Contractor is terminated and the owner wishes to complete the job with another Contractor? The owner should follow the procedure in Florida Statue 713.07(4) In the event that there are insufficient funds from the contract price to pay all valid liens, the liens attaching at the same time take what priority? The first priority is the liens of laborers How is lienable work defined? 27 | P a g e As the furnishing of labor, services or materials for the improvement of real property The Construction Lien Law provides a form of notice to owner. How many additions are allowed to be added to the "Notice to Owner"? Two What purpose does the "Notice to Owner" serve? Inform the owner of lien rights, which parties may invoke them, and allow the owner to verify proper payments to these parties If a lienor is not directly dealing with owner, how many days from lienors first work on the site, with no other materials being delivered, must the owner receive a "Notice to Owner"? 45 days or before the owner makes final payment, whichever comes first What is Privity? "The connection or relationship which exists between two or more contracting parties" Joe contracts with John and John contracts with Frank, who has privity? There is privity between Joe and John, and between John and Frank How many means of serving the "Notice to Owner" and other lien documents are there? Four How long does a lienor have to serve a copy of a lien on the owner after recording a claim? 15 days How long does a claim of lien last? One year from date of recording What is the purpose of an Owner filing a "Notice of Contest of Lien"? To shorten the effective period of the claim lien What is the penalty for knowingly furnishing a false statement regarding the status of payment to subcontractors or suppliers? 3rd degree felony What is the penalty for filing a fraudulent lien? 3rd degree felony Once a lien has been resolved by payment or settlement, what document does the lienor need to record to clear the lien? A satisfaction of lien 30 | P a g e As a basis for construction material procurement Why should permissible speeds limits be determined when preparing an estimate for equipment? It determines the amount of material the equipment will move in one day What are the two types of labor estimates? Preliminary and detailed manpower Weather, experience of workers, time allotted for completion, size of the crew, accessibility of the site, type of materials and equipment to be used are all __ Factors affecting production Why is there a commodity concern in a typical commercial contract? The unique nature and singularity of an individual structure or building How does a court of law interpret ambiguous terms in a contract? Against the party who drafted the document What are three sources for standard industry construction forms? AIA, AGC, & NSPE What is the purpose of a cost breakdown? It serves as the basis for progress billings Who is typically responsible for job progress? A project engineer or field superintendent Planning and schedule are two distinct separate operations and planning must always precede scheduling, both of these are ___. Basic ground rules in analyzing a project What are the first tasks prepared by the Project Manager after the award of a contract? The creation of a project, material and equipment schedule Defining the project activities, restraints and developing the job logic table decreases the time needed to develop what? A Critical Path Schedule On a standard subcontract agreement, when does article B apply? When a subcontractor is in default Who should be able to understand construction processes, have communication skills, and be able to interpret contract documents? 31 | P a g e Field supervisors A lien on real property, in favor of persons supplying labor or materials for a building or structure for the value of labor or materials supplied by them is know as a ___ Mechanic's lien What is the metric equivalent to a 1/2" 10 mm Government regulations do not clearly assign environmental compliance responsibilities to the Owner or the Contractor, however both can be held liable for ____ Failure to comply What is the maximum allowed, per day penalty for Environmental Non-Compliance? $10,000 per day per violation What must be done prior to putting fuel in an above ground petroleum storage tank with a capacity of 600 gallons? You must register the tank with FDEP within 30 days of putting product into the tank F.A.C. 62-604.550 requires notifications to the FDEP for "all" accidental discharges of a broken or severed sewer line within how many hours of an event? 24 hours If a contractor is planning to burn the debris from clearing the land, the burner must obtain a authorization from where? The Florida division of Forestry What are four most common types of business structures? Sole Proprietorship, Partnership, Joint Venture & Corporation The accounting equation known as Assets equals Liabilities and Equity How often is a certified or registered contractor required to renew licensure? Every Two Years What must occur before law enforcement can be dispatched, if a residential or commercial intrusion/burglary alarm with central monitoring services receives an alarm? 32 | P a g e Attempt to confirm the alarm signal by call, text, or other electronic means made to the owner, occupant or authorized designee How many days does a business have to obtain a qualifying person if they lose their previous qualifier? 60 Days What action must a septic contractor take after the installation of a new septic tank before covering it with earth and placing it into service? Notify the county health department and have the system inspected The amount a company spends to provide goods and services to its customers is known as? Expenses A licensed fire alarm company interviewed a 17 year old high school drop out for a fire alarm agent position. A background check reveals that he was convicted of possession of a controlled substance four years ago. Should the company hire this individual? No, the minimum age is at least 18 years old How many members does the construction licensing board consist of? 18 If an applicant is employed as an alarm system agent, and does not complete the training or receive a satisfactory criminal background check within 90-day period, what must the sponsoring licensed contractor do? The employment must be terminated immediately Within how many minutes of activation must an "audible alarm" signal terminate? 15 minutes What are three means to establish evidence that the applicant possesses the ability to properly supervise construction activities when qualifying an additional business entity? Owns 20% or more of the business; Receives a W-2; or provides evidence of the means and methods utilized to ensure control over the construction work. 61G4-15.015 provides for the certification of what type of structure contractors? Specialty Structure Contractors What is the minimum distance a sewage system can be located from a private potable well or multi- family water system? 75 feet The matching of expenses with the revenues that they helped generate is called the ____? Matching concept 35 | P a g e A joint venture is: two or more persons or entities jointly seeking a profit in some specific venture without an actual partnership or corporation designation Which of the following is true regarding a joint venture? a joint venture is generally limited to a single transaction One of the advantages of a standard corporation is: fringe benefits are tax deductible Which of the following statements is true concerning an S Corporation? Only individuals or estates can be shareholders. Which of the following is an advantage of an S Corporation? as sole proprietors, income or losses are reported as to an individual taxpayer. Which of the following is an advantage of a regular corporation? tax deductible fringe benefits A person may engage in business under a fictitious name by registering the name with the: Division of Corporations How long is a registered fictitious name valid for? 5 years According to the Florida Contractors Manual, a Model Business Plan should include an equity structure of total ownership divided by total capitalization of a ____ ratio. 1 to 1 A model business plan should include which of the following personal information? last three years of personal income tax returns Unless you are a sole proprietor, federal form SS-4 must be filed on or before the: seventh day after the date on which business begins Occupational licenses may be required for every business and are issued by the: counties and cities Which agency oversees engineers in the State of Florida? Board of Professional Engineers How are Florida sales tax reported and paid? 36 | P a g e Reported on form DR-15-CS and paid on a monthly basis According to the Florida Contractors Manual, a partnership can be dissolved for all of the following except: by order of the Florida DBPR Florida Statutes (Chapter 489) provides for the licensure and regulation of all types of contractors in Florida and are divided into: construction contracting, electrical and alarm systems contracting, and septic tank contracting According to the Contractors Manual, which of the following is required to be licensed under Chapter 489.103 of the Florida Statues? persons performing small remodeling jobs with a contract price of less than $2,500 Which of the following construction projects requires a licensed general contractor? service stations Which of the following construction projects requires a licensed contractor? bank Which of the following must be subcontracted by a state certified general contractor, unless a general contractor holds a state certificate of competency or license in that area? air conditioning ductwork According to Chapter 489 of the licensing law, what work can a licensed general contractor do on new buildings? fiberglass shingle roofing Which of the following is true regarding a general contractor who is constructing the main sanitary sewer collection system, the storm collection system, or the water distribution system on new site development work, but not including continuation of utility lines? the general contractor may do the work himself Which of the following is NOT an IRS category used to define independent contractors? first degree misdemeanor Engaging in contracting services or holding oneself out to be a contractor without first obtaining a license is a violation of Florida law and is considered a ____ for a first offense. first degree misdemeanor The maximum amount of compensation that a consumer is entitled to if injured on a job site due to an unlicensed contractor's negligence is: triple the amount of damages, plus attorney's fees 37 | P a g e Which of the following must be true for a person to qualify for a state certification of competency? be of good moral character, be at least 18 years of age and pass an examination Which of the following licenses and/or certifications is necessary to engage in the business of installation, improvement, repair or maintenance of any tubing, pipe or similar conduit used to transport gas for medical purposes? a plumbing contractor with medical gas certification All certified contractors must carry and maintain what type of insurance in order to work in the state of Florida? public liability and property damage in the amounts as set by the board As a prerequisite to initial licensure or the renewal of a license as certified or registered contractor, general and building contractors must carry a minimum insurance amount of: $300,000 liability/$50,000 property damage Every certified and registered contractor must complete a minimum of ___ hours of continuing education during every two-year license cycle. 14 When the sole qualifying agent leaves the employ of a business organization, the organization must replace the qualifying agent within: 60 days A qualifying agent for a business organization: is legally qualified to act for the business in all matters connected with contracting A maximum of------ of the required continuing education hours can be fulfilled by the performance of pro bona services to the indigent or to underserved populations within the state where the licensee practices. 25% According to Florida Statutes Chapter 455, the Board shall keep an accurate record of each applicant's examination questions, answers, papers, grades, and grading key for a period of not less than ____ immediately following the examination. 2 years Each continuing education provider shall retain all records relating to a licensee's completion of continuing education courses for at least ____ after completion of a course. 4 years 40 | P a g e According to Contractors Manual, the ___ is a company's primary record of all its business transactions. journal According to Contractors Manual, which one of the following is NOT a category of the income statement? accounts receivable According to Contractors Manual, real estate may be depreciated using: a straight line method According to Contractors Manual, ___ are billings that have been sent out by a construction company, but which have not been paid. accounts receivable According to Contractors Manual, what is the method of accounting that keeps track of each individual invoice, together with each partial payment made against it, provides sufficient detail to allow calculations of interest charges on overdue receivables and take advantage of discounts offered by suppliers for early payment of their invoices ? open invoice method The difference between salaried workers and hourly wage workers is: salaried workers receive the same base amount every pay period Federal unemployment taxes (FUTA) and Florida state unemployment taxes (SUTA): are paid by the employer only To remit FUTA payments to the IRS, it is required that you send: a separate check When a supplier sends goods "FOB" from the supply house, the ownership passes from the supplier to the company: at the point of delivery What is the simplest method of controlling inventory? average cost A material supplier sells $5,000 worth of materials to a construction company that is not tax exempt. According to the Contractors Manual, who is responsible for the collection and reporting of the state sales tax when the material is purchased? the supplier When it comes time to remit your state and local taxes to the government, you must remit: the total amount collected for both to the state government 41 | P a g e Expanding a business usually requires a great deal of capital to purchase new equipment, buildings or to obtain long term financing. To qualify for expansion financing, financial institutes typically require that you have been in business at least ____ , while ____ is preferred. 2 years; 5 years What is the term for the effective annual rate of interest which will be paid on the principal borrowed? rate The actual amount of cash received in a discount loan will be less than the principal amount due at the end of the loan. The difference between the cash received and the principal due at the end of a loan is known as the: discount In addition to job cost records providing a contractor with detailed records for cost control, it also allows the contractor: involvement in all projects All costs identified during the estimating process, whether directly or indirectly associated with the contract, should be accumulated by the job cost records to provide information to: management Unless stated otherwise in the contract documents, the type of construction contract in which the contractor takes all the risk of cost overruns is called a: lump sum contract The type of contract which provides for reimbursement of defined costs incurred plus a fee for the contractor's services and a stipulated ceiling price is a: guaranteed maximum price contract What is the type of construction contract in which a contractor will perform a particular work at a fixed price per unit of output? unit price contract According to Contractors Manual, which of the following is not a feature of a cost-plus contract? these contracts provide for a single price for the total amount of work to be performed on a project Which method of accounting will result in the quickest revenue recognition? the percentage of completion method According to Contractors Manual, under the Completed Contract Method of accounting, when is a project complete enough to recognize profit? when the project is more than 98% to 99% completed 42 | P a g e According to Contractors Manual, which one of the following should not be considered overhead? performance bond premiums According to Contractors Manual, which cost is usually not considered to be overhead? construction supervision According to the Contractors Manual, the two most commonly used liquidity ratios are the: current ratio and the quick ratio According to the Contractors Manual, the ratio that is determined by adding cash, accounts receivable and marketable securities together and dividing by current liabilities is referred to as the: quick ratio According to Contractors Manual, which is an advantage of leasing equipment? leasing will generally reduce the front-end cash outlays When determining dollar amounts for payroll deductions which IRS publication or form would be most helpful? Circular E According to Contractors Manual, on which of the following items must a contractor pay Florida sales tax, if it is excluded on the invoice amount? invoice from a drywall material supplier Which of the following is not one of the basic methods of revenue recognition? Credit Method According to Contractors Manual, when a contractor fails to complete a project within a specified time, a contract penalty clause often calls for: liquidated damages What determines the amount of liquidated damages? owner costs Contractors found to be in willful violation of the Davis-Bacon Act face being debarred from participating in Davis-Bacon Act contracts for up to ____ months. 36 When hiring a new employee you must: all of the above A construction company used a number of independent contractors that were not employees of the company to perform various jobs. Each of these jobs involved payments in excess of $600 to the 45 | P a g e Which type of bond requires that if a contractor is the low bidder on a project, and does not enter into a contract with the owner, according to the bid documents, then the contractor will forfeit the bid amount stated on the bid bond? forfeiture obligation The type of bond guaranteeing the owner that the project will be completed according to the contract documents is the: Performance bond What is a surety company's maximum obligation on a $100,000 combined Performance and Payment Bond? $100,000 Typically, a surety company will request year-end financial statements for review of the last__________ years to secure a bond. 3 What are the three C's of underwriting that the surety industry considers before a contractor can acquire a bond? capital, character and capacity Which method of preparation for financial statements is most extensive? audit When securing a bond through the Small Business Administration Guaranty Program, the contractor will be charged an additional ____ per thousand over the standard bond rates. $7.29 According to the Age Discrimination in Employment Act, employees 40 years or older cannot be treated differently unless _________ the employer can legally justify its action The Americans with Disabilities Act of 1990 (ADA): protects employees with disabilities against discrimination According to Contractors Manual, an unfair labor practice charge must be received by the regional office with jurisdiction over the area where this alleged unfair labor practice occurred. What is the time limit to file this charge? 6 months A non-union contractor is considering the possibilities of a collective union bargaining agreement with the union. What amount of support will the contractor need from the employees, if the contractor decides to sign a collective bargaining agreement with the union? 46 | P a g e the contractor is not required to have the support of the employees According to Contractors Manual, all of the following are prohibition agreements under Florida's Right to Work Law except: federal enclaves agreements Basically, coverage of the FLSA extends to all employees in businesses with annual gross sales of not less than: $500,000 According to Fair Labor Standards Act, which of the following will eliminate the contractor's liability for paying overtime pay? a salesman who is customarily and regularly engaged away from the employer's place of business and qualifies as exempt A non-exempt hourly employee is paid on a bi-weekly basis. If he works 35 hours the first week of the pay period and 54 hours the second week of the pay period what options does the employer have regarding his compensation? include 14 hours of overtime pay in the employees' paycheck According to Fair Labor Standards Act, which will eliminate the contractor's liability for paying overtime pay? an outside salesperson who works on straight commission and qualifies as exempt According to Contractors Manual, which of the following is not in accordance with the requirements for an executive being granted an exemption from the Fair Labor Standards Act? receives a salary of $900 per week Employers are required by regulation to keep so-called "hard records" such as payroll, employment contracts or agreements, and sales and purchase records for at least_____________ 3 What is the statute of limitations for willful payroll recordkeeping violations according to the Wage and Hour Division of the U. S. Department of Labor? 3 years The Secretary of Labor has specifically prohibited the employment of anyone in construction under the age of: 16 According to the Florida Contractors Manual, a 17 year old is permitted to work in which of the following occupations? on scaffolding not to exceed 6' 47 | P a g e The Davis-Bacon Act covers all employees on governmental contracts in excess of____________ and assures that the prevailing area wage rates are paid to all employees. $2000 What are the maximum compensatory and punitive damages that a plaintiff may recover from an employer with 75 employees, under the Civil Rights Act of 1964 (Title VII)? $50,000 The Florida Aids Statute (FS 760.50) prohibits employment discrimination based on the results of an HIV- related test or refusal to such a test and the statue provides that persons with AIDS, ARC or HIV have the same protection as other disabled persons. This statue covers: all employers According to the Florida Human Rights Act of 1992, protection against discrimination is provided for all of the following except: drug abuse Under the Florida Human Rights Act of 1992, (Chapter 760, FL. Statue) back pay liability is limited to ___ months prior to filing of complaint. 24 The Civil Rights Act applies: to all employees The Age Discrimination in Employment Act prohibits discrimination in employment against persons ____ years and older. 40 In reference to 42 U.S.C, the initials ADA are used to indicate: Americans with Disabilities Act For ADA purposes, the term disability includes individuals who are ____ impaired in any respect. in no way What Act protects covered employees from retaliation for disclosing their employer's violations of law that may pose a danger to public health, safety or welfare or for alleging improper use of government office or gross waste of funds? Public Whistles Blowers Act According to the Veteran's Re-employment Laws, a military leave of absence must be granted to any permanent full time or permanent part-time employee who enlists or is drafted into active duty in the armed forces. An employee, who has been rehired and is covered under the law, is prohibited from being discharged 50 | P a g e The division of Workers' Compensation considers all of the following to be construction activities except: well drilling on land with existing buildings Construction activities as described in the Workers' Compensation statute include all of the following except: the manufacturing of materials used in construction work The Workers' Compensation statute considers which of these activities to be a construction job? roof replacement A contractor has obtained a certificate of insurance from a subcontractor showing proof of workers' compensation coverage. If the policy is not renewed, how much notice does the insurance provider need to give the contractor? there is no requirement to provide notice to the contractor According to Contractors Manual, what entity is legally required to notify the general contractor when a subcontractor fails to renew workers' compensation insurance that the subcontractor has purchased for his employees? no one is responsible To reduce workers' compensation premiums, an employer may do any of the following, except: require employee to pay part of the premium Each insurer transacting or offering to transact workers' compensation insurance in Florida must make deductibles available at the written request of the employer. Which of the following deductible amounts per compensable claim is NOT required to be made? $3,000 As required by law, a contractor required to carry Workers' Compensation insurance may fulfill the requirements by: seeking individual self-insured status through the Department of Labor and Employment Security Individuals participating in self-insured workers' compensation plans should be aware that they are subject to possible ____ if ____ develop in the Guaranty Fund. assessments; deficits Which of the following can be assessed to a contractor who does not carry required workers compensation coverage? all of the above Beneficiaries of a worker killed in a covered workplace accident are entitled under Florida law to: up to $150,000 in death benefits and up to $7,500 in funeral costs 51 | P a g e Under the Florida Workers' Compensation Act, after an accident has occurred, an injured employee has how long to advise the employer of the injury? 30 days According to the Florida Workers' Compensation Law, first aid cases requiring treatment on site that do not require medical treatment for which charges will be incurred, and do not disable the employee for more than ___ , do not need to be reported. 7 days Any violation of rules regarding reporting accidents to the Division of Workers' Compensation can subject the employer to a penalty of: $500 Insurance premiums on Workers' Compensation are based on employer's classification code, and per ___ of payroll. $100.00 Which is a requirement for an employee to recover under a compulsory State Workers' Compensation Statute? the injury must arise out of and in the course of employment An employer who willfully misrepresents an employee as an independent contractor for the purpose of avoiding Workers' Compensation premiums: may be assessed a penalty of up to $5,000.00 What is the minimum number of days that must elapse before drug actual testing may begin after a one- time notice is given by an employer that a drug testing program is being implemented? 60 days The Division of Workers' Compensation shall impose a ____ per day fine for each day the employer conducts business operations that are in violation of a stop-work order. $1000 Accident prevention programs must be initiated by whom, according to Contractors Manual? employer Employers with at least ____ must maintain an OSHA 300 safety log. 11 employees Where there are multiple contractors on a job without a common area, who should supply the OSHA posters? all contractors 52 | P a g e Which of the following injuries is NOT required to be recorded on OSHA Form 300/300A? a slight cut Recordable incidents must be entered in OSHA Form 300/300A within days of learning of its occurrence. 7 OSHA records must be maintained by which type of employer? self-employed persons with one or more employees ____ covers employees engaged in industries affecting interstate commerce. OSHA OSHA No. 301, Supplementary Record of Occupational Injuries and Illnesses, is used to record: 5 years A fine and imprisonment of not more than ____ is the maximum penalty for knowingly making false statements, representations, or certification in any application, record, report, plan or other document filed as part of the OSHA requirements: $10,000 and 6 months You would classify a case as an injury, rather than an illness, according to OSHA guidelines, if the case: was caused by an instantaneous event Which of the following are NOT considered medical treatment? administration of booster or tetanus shots Employees have the right to notify the nearest OSHA office and anonymously request an inspection if they believe an unsafe condition exists in the workplace. If the employee feels discriminated against as a result of notifying OSHA they may file a complaint within: 30 days of the alleged discrimination A maximum civil penalty of ___ for each willful or repeated OSHA violation is allowed by the Omnibus Budget Reconciliation Act of 1990. $124,709 To ensure that the most flagrant violators are in fact fined at an effective level, a minimum fine penalty of ____ for a willful violation of OSHA was adopted by Congress. $4,988 What is the base penalty, before adjustments, for failure to post OSHA citations, according to the Contractors Manual? $3,000 55 | P a g e A Notice of Commencement can be extended past one year: if it is written into the Notice of Commencement A lienor, who is served with an Affidavit of Abandonment, should record the claim of lien, whether or not previously recorded, within how many days of the date the Affidavit of Abandonment recorded by the owner? 30 days Lien rights are not available for: material man supplying materials to another material man Smith Masonry is under contract with CAM Construction to provide the masonry on Mr. Adams' residence. Smith Masonry orders materials for the project from Jones Distribution who in turn purchases the materials from ACME Adhesives. Upon completion of the project, Mr. Adams refuses to pay the final invoice. Assuming all contractors and suppliers provided proper notices, who is not protected under the Florida Lien Law? ACME Adhesives In order to obtain lien rights all the following suppliers of labor and/or materials to the construction project will file a "Notice to Owners" except a: laborer of a sub-subcontractor A non-privity lienor must send a Notice to Owner within days after the first furnishing of labor or materials. 45 Payments made by an owner to a contractor, without requiring waiver or release by a lienor who has filed a Notice to Owner, are considered: improper payments Who is a privity lienor? a lienor with a direct contract with the owner How many days does a lienor have to record a claim of lien? within 90 days of the last furnishing of services From the date of the subcontractor's final furnishing of labor, services, or material for a job, how long does the subcontractor have for recording a valid Claim of Lien? 90 days A construction claim of lien must be recorded by: the clerk of the court 56 | P a g e A contractor must serve a copy of the claim of lien on the owner and lender (if any) within how many days of the date the claim of lien is recorded? 15 You must send a sworn statement of account within ____________ when making a claim of lien. 30 days after demand of statement has been made A person who does not comply with the Lien Law requirement that states that funds received for constructing or altering improvements are used to pay others for services and materials provided in connection with the project, may be: criminally prosecuted under the Lien Law for felony and subjected to discipline under the Contractor Licensing Law Once a lien of under $15,000 has been transferred to a bond, what court has jurisdiction? state circuit court According to the Florida Construction Lien Law, one way an owner can minimize duties under the Construction Lien Law is for the owner to: require that the contractor obtain a payment bond Which courts oversees disputes regarding the Miller Act? federal district All non-privity contractors making a claim of non-payment must serve the claim of non-payment on: the contractor and surety A building inspection may be denied, according to Contractors Manual, for lack of: a recorded Notice of Commencement posted on the job site On a project with a total cost of $10,000, the contractor will initially be unable to obtain _______ if an owner fails to file a Notice of Commencement an approval of Building Inspections To diagram an estimate-bid process from beginning to end, which of the following can be used? a flow chart The specifications require one type of equipment, but the plans show a different type. When preparing a bid, the contractor should: follow the specifications According to Contractors Manual, CSI-MASTERFORMAT divides the specifications into how many specific divisions? 50 57 | P a g e Contractors typically must furnish items for the conduct of the job as a whole. These are usually known as: general conditions General Conditions do not include which item: bid bond Supplementary conditions of the contract documents include which of the following? jobsite office requirements According to the Contractors Manual, the square footage method of estimating is not recommended for: lump-sum contracts According to the Florida Contractors Manual, what is the most accurate method of estimating? an estimate based on piece method and detailed survey According to the Florida Contractors Manual, the ____ is a control device used to rough estimate the total cost and prepare square footage, unit price and approximate bids. rule-of-thumb check A ____ is an estimating form that shows the material vendor, supply status and required material delivery date. Material Take-Off Sheet According to the Florida Contractors Manual, what are construction materials subject to between the procurement of construction materials and final installation? waste and loss It is recommended that to procure long lead items, the items should be: identified and ordered early According to Contractors Manual, which of the following production factors would not be considered by the estimator when calculating equipment cost estimates? original purchase price of the equipment When estimating the cost of transporting equipment to the job site, the estimator should use: 40 to 65% of the speed limits When producing an equipment estimate, some factors that are taken into consideration are: age and condition of equipment, permissible speeds and safety factors All these factors, except one, must be considered when estimating manpower: 60 | P a g e The subcontractor shall correct, repair, or replace defective work within how many hours after receiving notice of the defective work from the contractor? This is a notification clause that should be included in a standard contractor-subcontractor agreement, according to the Contractors Manual. 24 The contractor sends out a Notice of Termination to the subcontractor and the subcontractor's bonding company. According to Contractors Manual, after the Notice of Termination is sent and the subcontractor is officially terminated, the: subcontractor's equipment and materials should be left on the site until the subcontractor's work is completed According to Contractors Manual, the overall timeframe for receiving submittals (shop drawings) from vendors and/or subcontractors on a given job is defined by the construction schedule. A weekly labor distribution report is one of several: cost accounting reports Which of the following is a responsibility of the project superintendent? coordination and maintenance of equipment Who i s responsible to submit weekly labor and cash flow reports? project manager Whose job duties include organizing the project, developing and maintaining the schedule and directing personnel and subcontractors? project superintendent Increasing cash flow that aids the contractor in financing the project is accomplished using a type of contact cost breakdown that estimates a higher percentage of cost in the early phases of the project. This term, according to the Contractors Manual is: front-end loading Environmental regulatory inspections will usually be: unannounced When considering paint removal, if the paint contains more than mg/L of lead it must be handled as a hazardous waste. 5 The ________ is the primary permit application agency for construction activities conducted in Florida wetlands. 61 | P a g e Florida Department of Environmental Protection Contractors licensed pursuant to Chapter 489, must maintain complete financial and business records kept in the regular course of business for the immediately preceding ____________ 3 years A secondary qualifying agent is responsible for: the supervision of field work at sites where the agent's license was used to obtain the building permit A business organization must inform the Department of Business and Professional Regulation by mail of any change in the information required to be submitted within ___________ days following the change. 45 A contractor's license number must appear in all of the following advertisements concerning the contractor except: free yellow page ads The licensing board can impose an administrative fine of up to _______ on a contractor for proceeding any job without obtaining applicable local building permits and inspections. Assume the building permit was applied for late. $3,000 A fine of up to_____ can be imposed on a contractor for proceeding and completing any job without obtaining applicable local building permits. $5,000