Florida Contractors Manual-4

Question 1

1. A qualifying agent for a business entity, who was in charge of a construction project undertaken
   by that business entity, is disciplined by the Construction Industry Licensing Board for willful or
   deliberate disregard and violation of applicable building codes. According to Florida Construction
   Industry Licensing Law, if any officer, director, or member of the business entity knew or should
   have known of the violation and failed to take corrective action, the Board may impose a maximum
   combined total administrative fine, per violation, against the business entity and the qualifying
   agent of .

A. $2,500
B. $5,000
C. $10,000
D. $15,000

Answer 1

1. D 2021: 2-83,84: §489.129(1) plus additional fine per §489.129(2)
   2017: 2-95,96: §489.129(1) plus additional fine per §489.129(2)

Question 2

2. A “secondary” qualifying agent is responsible for .

A. The company’s financial matters only on jobs where the agent’s license was used to obtain the
permit
B. Supervision of field work at sites where the agent’s license was used to obtain the permit
C. Items designated by the primary qualifying agent of the company
D. All qualifying matters as qualifying agent when the original qualifier leaves the company

Answer 2

2. B 2021: 2-22, 2-78 §489.1195 (2)(e)
   2017: 2-21, 2-89: §489.1195 (2)(e)

Question 3

3. Real estate may be depreciated using method.

A. A straight line
B. An adjusted basis
C. Any accelerated
D. The double declining balance

Answer 3

3. A 3-34, 3-35

Question 4

4. When can a Notice of Commencement be extended past one year?

A. If it is written into the Notice of Commencement
B. If the job proceeds past one year
C. When there is an architectural change order
D. Never

Answer 4

4. A 2021: 9-78: §713.13 (1)(a)7.(c)
   2017: 9-88: §713.13 (1)(a)7.(c)

Question 5

5. Which is NOT a delay factor when determining production efficiency percentages?

A. Accessibility of site
B. Financial incentives
C. Poorly trained personnel
D. Weather conditions

Answer 5

5. B 10-30, 10-31

Question 6

6. According to Fair Labor Standards Act, which will eliminate the contractor’s liability for
   paying overtime pay?

A. An agreement that only 8 hours per day or 40 hours per week will be counted as working time
B. An outside salesperson who works on straight commission and qualifies as exempt
C. An announcement by an employer that overtime work will only be paid for if authorized in advance
D. An announcement by an employer that no overtime work will be permitted

Answer 6

6. B 5-15

Question 7

7. According to Florida Contractors Manual, which is an advantage of leasing?

A. Lower overall cash flows than purchasing
B. Reduced front end cash outlays
C. Generates depreciation for tax purposes
D. Cheaper than owning in the long run

Answer 7

7. B 3-93

Question 8

8. A secondary qualifier is never responsible for .

A. Safety at the jobsite
B. Permits they pulled
C. The quality of work at the jobsite
D. Financial matters

Answer 8

8. D 2021: 2-78: §489.1195 (2)(e)
   2017: 2-89: §489.1195 (2)(e)

Question 9

9. All chains, being used as a sling, should be inspected once a by a competent inspector.

A. Day
B. Week
C. Month
D. Year

Answer 9

9. C 7-89

Question 10

10. Which of the following is NOT a prohibited agreement under Florida’s Right to Work Law?

A. Union shop agreements
B. Agency shop agreements
C. Federal enclaves’ agreements
D. Maintenance of membership agreements

Answer 10

10. C 5-14, 5-15

Question 11

11. Failure of a certificate holder or registrant to apply for renewal of an active certificate at
    the time of biennial renewal shall cause the certificate to become .

A. Temporarily suspended
B. Permanently suspended
C. Voluntarily inactive
D. Delinquent

Answer 11

11. D 2021: 2-74: §489.116 (4)
    2017: 2-84: §489.116 (4)

Question 12

12. Claims arising from damages that resulted from a contractor’s work that already has been
    finished would be covered by a .

A. Completion bond
B. Completed operations liability policy
C. Builder’s risk insurance policy
D. Manufacturer’s and contractor’s liability policy

Answer 12

12. B 4-9

Question 13

13. What is the purpose of the Lien Law payment bond?

A. To exempt the contractor from construction liens
B. To exempt the subcontractor from construction liens
C. To protect the owner’s property from construction liens
D. To allow easy payments to subcontractors

Answer 13

13. C 2021: 4-14, 9-47
    2017: 4-14, 9-46

Question 14

14. Under the Civil Rights Act of 1964 (Title VII), the maximum compensatory and punitive damages a
    plaintiff may recover from an employer of 95 people is .

A. $24,000
B. $50,000
C. $100,000
D. $250,000

Answer 14

14. B 5-35

Question 15

15. According to National Council on Compensation Insurance, a contractor’s worker’s compensation
    premiums can be reduced by any of the following, except .

A. Participating in a co-insurance program
B. Joining an insurance pool
C. Participating in a deductible program
D. Requiring the employee to pay part of the premium

Answer 15

15. D 6-26

Question 16

16. Under the Florida Human Rights Act of 1992, (Chapter 760, FL. Statue) back pay liability is
    limited to___________________ months prior to filing of complaint.

A. 6
B. 18
C. 24
D. 36

Answer 16

16. C 5-36

Question 17

17. According to Florida Contractors Manual, who has the responsibility to initiate safety
    programs?

A. Only general contractor
B. Employer
C. Project engineer
D. Safety engineer

Answer 17

17. B 7-36

Question 18

18. How long after the subcontractor’s final furnishing of labor, services, or material for a job
    does the subcontractor have for recording a valid Claim of Lien?

A. 45 days
B. 60 days
C. 90 days
D. One year

Answer 18

18. C 2021: 9-76: §713.08(5)
    2017: 9-84: §713.08(5)

Question 19

19. The quarterly Federal Tax Form 941 summarizes tax liability for the employer and includes
    .
    A. Liability insurance
    B. Federal income taxes withheld
    C. Workers compensation insurance
    D. Federal unemployment insurance tax

Answer 19

19. B 2021: 3-181
    2017: 3-177

Question 20

20. A properly registered fictitious name is valid for year(s).

A. 1
B. 2
C. 3
D. 5

Answer 20

20. D 2021: 1-14
    2017: 1-15

Question 21

21. Which type of bond is a guarantee to the owner that the project will be completed according to
    the term and conditions specified in the contract?

A. Payment bond
B. Bid bond
C. Performance bond
D. Completion bond

Answer 21

21. C 4-14

Question 22

22. According to the Internal Revenue Service, employers must keep all employment tax records for
    at least how many years?

A. 2 years
B. 4 years
C. 5 years
D. 7 years

Answer 22

22. B 2021: 3-160 (2nd printing / 2021 IRS Circ. E)
    2021: 3-158 (1st printing / 2016 IRS Circ. E)
    2017: 3-154

Question 23

23. For purposes of unemployment compensation, misconduct connected with work does not include
    .

A. Wrongful intent or evil design
B. Deliberate disregard of employee duties
C. Deliberate disregard of behavior standards
D. Isolated instances of negligence and poor judgment

Answer 23

23. D 2021: 5-300
    2017: 5-302

Question 24

24. Which of the following companies would be required to have Worker’s Compensation Insurance?

A. A company that is not in the construction business that leases 2 employees
B. A company in the construction business that hires employees
C. A corporation in the construction business with 2 employees who are both officers of the
corporation and have certificates of election to be exempt
D. A corporation that is not in the construction business with 2 employees who are both officers of
the corporation and have certificates of election to be exempt

Answer 24

24. B 6-5

Question 25

25. A Notice to Owner from a non-privity lienor must be sent within days after the first furnishing of labor or materials. A. 30 B. 45 C. 72 D. 90

Answer 25

25. B 2021: 9-72: §713.06(2)(a) 2017: 9-76: §713.06(2)(a)

Question 26

26. A construction company that is not tax exempt has received a materials only bid from the supplier in the amount of $3,500. Who is responsible for the collection and reporting of the state sales tax when the material is purchased? A. The supplier B. The owner of the building C. The construction company only D. No one; no sales tax is required

Answer 26

26. A 3-63

Question 27

27. When progress billings bring in more income than costs incurred during the early stages of a contract, the contractor is using . A. A draw system B. A pre-qualified payment method C. Front end loading D. The critical path method

Answer 27

27. C 3-108, 10-74, 10-75

Question 28

28. When preparing a bid, the contractor notes that the specifications require one type of equipment, but the plans show a different type. The contractor should . A. Bid based on using the least expensive of the two B. Follow the plans C. Follow the specifications D. Substitute comparable equipment

Answer 28

28. C 10-6

Question 29

29. What is required to file a construction claim of lien? A. Permission from the owner B. A court order C. A direct contract with the owner D. The claim must be recorded with the clerk of the court

Answer 29

29. D 2021: 9-76: §713.08 (5) 2017: 9-84: §713.08 (5)

Question 30

30. Which is a requirement for an employee to recover under a compulsory State Workers' Compensation Statute? A. The injury must occur while the employee is engaged in interstate commerce B. The injury must arise out of and in the course of employment C. The injury must arise out of the negligence of the employer or fellow employee D. The injured employee must be a permanent full-time employee

Answer 30

30. B 6-26

Question 31

31. The Drug-Free Workplace Act of 1988 . A. Does not require drug testing B. Always applies to subcontractors C. Applies to contractors in foreign countries D. Applies only to contractors with more than 50 workers

Answer 31

31. A 2021: 5-49, 5-50 2017: 5-49

Question 32

32. Which of the following can be added to a Builder's Risk policy by means of an extended coverage endorsement? A. Vandalism coverage B. Malpractice coverage C. Materials in transit D. Catastrophic flood coverage

Answer 32

32. C 4-7

Question 33

33. Which bond requires a low bidding contractor who fails to enter into a contract to pay a penalty equal to the amount of the bid? A. Performance bond B. Forfeiture obligation C. Difference in bid D. Payment

Answer 33

33. B 4-13

Question 34

34. The Statute of limitations requires that an action for breach of an unwritten contract must be brought within a maximum of years. A. 2 B. 4 C. 5 D. 7

Answer 34

34. B 8-23

Question 35

35. Which of the following wages would not be subject to Federal Unemployment tax paid by the employer? A. Wages paid to a Canadian who frequently enters the U.S. to work as a carpenter B. Severance pay C. Wages paid to a deceased worker's estate in the same calendar year as the date of the worker's death D. Wages paid to the employer's spouse

Answer 35

35. D 2021: 3-193 (2nd printing / 2021 IRS Circ. E) 2021: 3-188 (1st printing / 2016 IRS Circ. E) 2017: 3-184

Question 36

36. A contractor required to carry Worker's Compensation insurance may fulfill the requirements of the law by . A. Obtaining liability insurance at three times the coverage generally required B. Seeking individual self-insured status through the Department of Labor and Employment Security C. Obtaining major medical insurance for all employees D. Obtaining life insurance policies for all employees

Answer 36

36. B 6-9

Question 37

37. How many employees must a contractor have for the Florida Workers' Compensation Act to be applicable? A. 1 B. 2 C. 3 D. 4

Answer 37

37. A 6-5

Question 38

38. A certified contractor operating as the qualifying agent and sole owner of a corporation was the low bidder on a project. The contractor died after the bid was awarded but before the work started. The executor of the contractor's estate is not a licensed contractor. Can the project legally be started by the deceased contractor's firm and administer by the executor? A. Yes, but only if the executor obtains a registered or certified qualifying agent within 30 days of the death of the contractor B. Yes, but only if the executor employs a registered or certified contractor as superintendent C. Yes, but only if the board approves it D. No

Answer 38

38. C 2021: 2-78: §489.121 2017: 2-89: §489.121

Question 39

39. OSHA regulations require that injury and illness records be retained in each establishment for calendar year(s) following the end of the year to which they relate. A. 1 B. 3 C. 5 D. 7

Answer 39

39. C 7-16

Question 40

40. Which activity is one of the most commonly followed preliminary project planning steps? A. Develop milestone check point list B. Obtain and review plans and specifications C. Relate project days to calendar days D. Scheduling the project

Answer 40

40. B 10-58

Question 41

41. Which of the following statements is true? A. You must file a claim of lien within 45 days of the last day you furnish labor and supply materials B. If the contract is less than $1,500 and you are not in privity with the owner, you may still have lien rights C. Claim of lien must be served on the owner before or within 45 days after it is recorded D. If claim of lien of lien is from a non-privity lienor (sub-subcontractor), Notice to Owner must be served on both the owner and the contractor

Answer 41

41. D 2021: 9-72: §713.06 (2)(a) 2017: 9-75, 9-76: §713.06 (2)(a)

Question 42

42. When estimating the cost of transporting equipment to the job site, the estimator should use . A. The actual speed limits B. The average of the speed limits C. 30% to 40% of the speed limits D. 40% to 65% of the speed limits

Answer 42

42. D 10-27

Question 43

43. Accounts receivables are classified as . A. Assets B. Credits C. Debits D. Liabilities

Answer 43

43. A 3-16

Question 44

44. The Civil Rights Act of 1964 Act applies to . A. only disabled employees B. only public employees C. only employees working for the government D. all employees

Answer 44

44. D 5-34

Question 45

45. A recorded Notice of Commencement will expire in 90 days unless . A. Notice to Owners are filed B. Work has commenced C. First payment to contractor is released D. First inspection is made

Answer 45

45. B 2021: 9-13 2017: 9-12

Question 46

46. When making a claim of lien, you must send a sworn statement of account within . A. 90 days after demand of statement has been made B. 30 days after demand of statement has been made C. 45 days before demand of statement has been made D. 15 days before demand of statement has been made

Answer 46

46. B 2021: 9-83: §713.16 (2) 2017: 9-98: §713.16 (2)

Question 47

47. What are two types of manpower estimates? A. Comparative and historical B. Graphic and detailed C. Preliminary and detailed D. Preliminary and historical

Answer 47

47. C 10-28

Question 48

48. Which of the following is NOT insurance? A. Surety Bonding B. Contractors Equipment Floater C. Transportation Policy D. Inland Marine Insurance

Answer 48

48. A 4-13

Question 49

49. According to Florida Unemployment Compensation Laws, an employer who fails to file reports when due will be assessed a penalty of per report for each month (or fraction thereof) that the report is delinquent. A. $25 B. $50 C. $75 D. $100

Answer 49

49. A 5-53

Question 50

50. An employer with 100 employees is cited by OSHA for a high severity, greater probability violation. The employer has had one other citation in the last 3 years. Using ONLY the information given, what would be the proposed penalty for this violation? (Select the closet answer) A. $5,000 B. $8,730 C. $10,795 D. $11,224

Answer 50

50. C/B 2021: 7-32 – 7-33 high severity, greater probability = base penalty of $13,494 adjustment factor = -20% for 51 to 100 workers Note: there is no 10% reduction for good past history because there was one other violation in the last 3 years. Solution: $13,494 x .80 (100% - 20%) = $10,795.20 proposed penalty B 2017: 7-32 – 7-33 high severity, greater probability = base penalty of $12,471 adjustment factor = -30% for 26 to 100 workers Note: there is no 10% reduction for good past history because there was one other violation in the last 3 years. Solution: $12,471 x .70 (100% - 30%) = $8,729.70 proposed penalty