FCC Contract Administration & Project Management 4 ā Questions and Answers
Question 1: A force majeure clause in a Florida construction contract typically excuses a party from performance when delays are caused by:
- Labor cost increases
- Material shortages caused by poor planning
- Hurricanes, floods, or other unforeseeable natural disasters (Correct answer)
- Subcontractor insolvency
Correct answer: Hurricanes, floods, or other unforeseeable natural disasters
Force majeure covers events beyond a party's controlāsuch as natural disastersāthat make performance impossible, not ordinary business risks like cost increases or poor planning.
Question 2: Which document formally transfers responsibility for a completed project from the contractor to the owner?
- Final pay application
- Substantial completion certificate
- Certificate of final completion (Correct answer)
- Notice of termination
Correct answer: Certificate of final completion
A Certificate of Final Completion confirms all punch list items are resolved and formally closes out the contractor's obligations, transferring full responsibility to the owner.
Question 3: A contractor receives a Request for Information (RFI) that reveals a design conflict. The BEST practice is to:
- Select the more economical option and proceed
- Log the RFI, submit it to the design team, and await a formal response before proceeding (Correct answer)
- Stop all related work until the conflict is resolved by litigation
- Issue a change order to the owner without design input
Correct answer: Log the RFI, submit it to the design team, and await a formal response before proceeding
Logging and formally submitting the RFI creates a documented record and ensures the design professional issues an authoritative response before the contractor commits to a path.
Question 4: Under Florida Ā§627.428, when a contractor successfully sues an insurer for wrongful denial of a claim, the insurer may also be liable for:
- Punitive damages only
- Attorney's fees (Correct answer)
- Statutory liquidated damages
- A license suspension penalty
Correct answer: Attorney's fees
Florida Ā§627.428 allows a prevailing insured or assignee to recover reasonable attorney's fees from an insurer that wrongfully denied a claim.
Question 5: In a construction project's Work Breakdown Structure (WBS), the LOWEST level of decomposition is called a:
- Work package (Correct answer)
- Control account
- Milestone
- Phase
Correct answer: Work package
Work packages are the lowest WBS level and represent the smallest units of work that can be assigned, scheduled, and cost-tracked.
Question 6: Which bond type guarantees that a contractor will complete the project according to contract terms if the contractor defaults?
- Bid bond
- Payment bond
- Performance bond (Correct answer)
- License and permit bond
Correct answer: Performance bond
A performance bond protects the owner by guaranteeing contract completion if the contractor defaults, with the surety stepping in or compensating the owner.
Question 7: Florida law requires contractors to maintain business records for a minimum of how many years?
- 3 years (Correct answer)
- 5 years
- 7 years
- 10 years
Correct answer: 3 years
Florida Ā§489.129 and related rules generally require contractors to retain financial and project records for at least 3 years, though specific contracts or federal work may require longer.
FCC Contract Administration & Project Management 4
A force majeure clause in a Florida construction contract typically excuses a party from performance when delays are caused by: