Page 1 of 196
100 Practice Questions for the Florida
Contractors Manual
Question 1
A Florida Certified Contractor is required to maintain a valid:
a) Local business tax receipt only
b) State license and local occupational license where required
c) Federal contractor registration
d) Bond with the Department of Revenue
Answer: b
Rationale: Florida law requires state licensure (DBPR/CILB) and
compliance with local occupational licensing. Federal
registration is not required for most contractors.
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Question 2
Which two of the following are acceptable methods for
calculating overhead? (Select two)
a) Percentage of direct labor
b) Percentage of direct material costs
c) Percentage of total project cost
d) Flat fee per project unrelated to costs
Answer: a, c
Rationale: Overhead is commonly allocated as a percentage
of direct labor or total project cost. Flat fees unrelated to costs
may not cover actual overhead.
Question 3
Scenario: A contractor bids $500,000 for a project but
forgets to include $20,000 for required permits. The owner
signs the contract. Can the contractor collect the extra
$20,000?
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a) Yes, as a change order
b) Yes, if the owner is notified before work begins
c) No, unless the contract has an “errors and omissions” clause
d) No, because the bid is a firm offer
Answer: c
Rationale: Florida courts often hold contractors to their bids.
Without a specific clause allowing correction of errors, the
contractor may bear the loss.
Question 4
Which financial statement shows a company’s profitability over
a period of time?
a) Balance sheet
b) Income statement
c) Cash flow statement
d) Equity statement
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Answer: b
Rationale: Income statement = revenues minus expenses =
profit/loss over a period.
Question 5
A progress payment schedule should be based on:
a) Contractor’s cash needs
b) Percentage of work completed
c) Time elapsed since start date
d) Owner’s available funds
Answer: b
Rationale: Payments tied to percentage of completion align
with value delivered and reduce disputes.
Question 6
Which two of the following are typically included in direct job
costs? (Select two)
100 Practice Questions for the Florida
Contractors Manual
Question 1
A Florida Certified Contractor is required to maintain a valid:
a) Local business tax receipt only
b) State license and local occupational license where required
c) Federal contractor registration
d) Bond with the Department of Revenue
Answer: b
Rationale: Florida law requires state licensure (DBPR/CILB) and
compliance with local occupational licensing. Federal
registration is not required for most contractors.
,Page 2 of 196
Question 2
Which two of the following are acceptable methods for
calculating overhead? (Select two)
a) Percentage of direct labor
b) Percentage of direct material costs
c) Percentage of total project cost
d) Flat fee per project unrelated to costs
Answer: a, c
Rationale: Overhead is commonly allocated as a percentage
of direct labor or total project cost. Flat fees unrelated to costs
may not cover actual overhead.
Question 3
Scenario: A contractor bids $500,000 for a project but
forgets to include $20,000 for required permits. The owner
signs the contract. Can the contractor collect the extra
$20,000?
,Page 3 of 196
a) Yes, as a change order
b) Yes, if the owner is notified before work begins
c) No, unless the contract has an “errors and omissions” clause
d) No, because the bid is a firm offer
Answer: c
Rationale: Florida courts often hold contractors to their bids.
Without a specific clause allowing correction of errors, the
contractor may bear the loss.
Question 4
Which financial statement shows a company’s profitability over
a period of time?
a) Balance sheet
b) Income statement
c) Cash flow statement
d) Equity statement
, Page 4 of 196
Answer: b
Rationale: Income statement = revenues minus expenses =
profit/loss over a period.
Question 5
A progress payment schedule should be based on:
a) Contractor’s cash needs
b) Percentage of work completed
c) Time elapsed since start date
d) Owner’s available funds
Answer: b
Rationale: Payments tied to percentage of completion align
with value delivered and reduce disputes.
Question 6
Which two of the following are typically included in direct job
costs? (Select two)
