FCC Contract Administration & Project Management 3 — Questions and Answers
Question 1: In Florida, a Notice of Commencement must be recorded BEFORE the contractor:
- Signs the contract with the owner
- Obtains the building permit
- Begins actual construction (Correct answer)
- Issues the first pay application
Correct answer: Begins actual construction
Florida §713.13 requires the Notice of Commencement to be recorded before the first furnishing of materials or labor to prevent priority disputes among lienors.
Question 2: Under the AIA A201 General Conditions, the Architect's authority to reject nonconforming work is BEST described as:
- Unlimited rejection authority at any phase
- Advisory only — the owner makes the final call
- Authority to require removal or correction, but not to terminate the contract (Correct answer)
- Authority to terminate the contractor's employment unilaterally
Correct answer: Authority to require removal or correction, but not to terminate the contract
AIA A201 grants the Architect authority to reject work that does not conform to the Contract Documents and require its correction, but contract termination is an owner action.
Question 3: Which type of contract places the GREATEST financial risk on the owner for cost overruns?
- Lump sum (stipulated sum)
- Cost-plus with a guaranteed maximum price
- Cost-plus percentage of cost with no GMP (Correct answer)
- Unit price contract
Correct answer: Cost-plus percentage of cost with no GMP
A cost-plus percentage contract with no GMP means the owner pays all actual costs plus a percentage fee with no ceiling, leaving the owner fully exposed to cost growth.
Question 4: A contractor's project manager discovers that a subcontractor has installed incorrect pipe diameter. The FIRST step the PM should take is:
- Issue a back-charge and deduct from the next payment
- Issue a written nonconformance notice and request a corrective action plan (Correct answer)
- Notify the bonding company
- Stop all work on the project
Correct answer: Issue a written nonconformance notice and request a corrective action plan
A written nonconformance notice documents the deficiency and triggers the subcontractor's obligation to respond with a corrective action plan before financial remedies are applied.
Question 5: Florida statute requires that a contractor's license number appear on all of the following EXCEPT:
- Proposals and bids
- Contracts
- Building permit applications
- Payroll records (Correct answer)
Correct answer: Payroll records
Florida §489.119 requires the license number on proposals, contracts, and permit applications, but internal payroll records are not required to display it.
Question 6: Earned Value Management (EVM) uses which formula to calculate Schedule Variance (SV)?
- SV = Planned Value − Actual Cost
- SV = Earned Value − Planned Value (Correct answer)
- SV = Budget at Completion − Estimate at Completion
- SV = Earned Value − Actual Cost
Correct answer: SV = Earned Value − Planned Value
Schedule Variance = Earned Value (BCWP) minus Planned Value (BCWS); a negative SV means the project is behind schedule.
Question 7: Under Florida's Prompt Payment Act (§255.073 for public projects), what is the required payment period from the date the owner receives a proper pay request?
- 10 days
- 20 days (Correct answer)
- 30 days
- 45 days
Correct answer: 20 days
Florida §255.073 requires state agencies to pay a proper invoice within 20 days; penalties and interest accrue after that deadline.
FCC Contract Administration & Project Management 3
In Florida, a Notice of Commencement must be recorded BEFORE the contractor: