Florida Contractors Manuel Question & Answer

Florida Contractors Manual Question Answer

Question: What is the base penalty for a contractor who fails to maintain OSHA logs.

Answer: $1000

Question: How many days does an employer have to record a recordable incendent on the Summary of Occupational Injuries and Illnesses, OSHA Form 300/300A, Page 7-12, 7-13?

Answer: 7 Days

Question: How many employees must an employer employ to be required to maintain an OSHA 300/300A log?

Answer: 10 employees

Question: A separate OSHA log must be maintained for each site where the employer works __________ months or more.

Answer: 12 Months or more

Question: In regards to OSHA, What four areas are employers responsible for.


  1. Record Keeping
  2. Construction Standards
  3. General Duty Clause (5A1)
  4. Display

Question: The General Duty Clause (5A1) states “Each employer shall furnish to each of his employees employment and a place of employment which is ________________________________________________________________.

Answer: cause death or serius physical harm to his employees.

Question: OSHA posters are required to be _________________ in areas where employees can _____________________.

Answer: Posted, see them

Question: On multi-contractor projects, each contractor is required to display a poster unless ________________________________________________________________________________.

Answer: A common area is available to all employees of all contractors on a daily basis.

Question: What groups are exempt from OSHA?

Answer: Religious establishments, employers of household workers, Individuals who do not have “employees”

Question: What type of firm would not be covered by the OSH Act?

Answer: A firm with no employees, or a member of an the exempt employers.

Question: Is an employer who had 12 employees in January of the current year but now only has 6 employees required to keep OSHA records? Why?

Answer: Yes, because they had 10 or more employers at a point and time within the calendar year.

Question: What are the 3 forms used for OSHA record keeping?

Answer: The OSHA No. 300/300A, (page 7-12 & 7-13), The Supplementary Record of Occupational Injuries and Illnesses, OSHA No. 301

Question: For every injury or illness entered on the log, it is necessary to record additional information on the supplementary record, _________________________________________.

Answer: OSHA 301 (Page 7-14)

Question: The supplemtary record OSHA 301 (Page 7-14) describes what 4 things?

Answer: (1) How the accident occured, (2) list of objects and substances involved, (3) the nature of the injury or illnes, (4) part(s) of the body affected.

Question: Within how many days of receiving information that a recordable incident occured shall an employer have available a supplementary record for each occupational injury or illness for that establishment?

Answer: 7 days

Question: Injury and illness record (the log and summary, OSHA No. 300/3001, and the supplementary record OSHA No. 301) must be kept for every _______________________________________________________.

Answer: Physical location where operations are performed.

Questions: Where should the OSHA records be kept at for employees who report to a fixed location but work elsewhere?

Answer: They should be kept at the place where the employees report each day.

Question: Where should OSHA records be kept at for employees who are not associated with a fixed establishment?

Answer: A field office or mobile base of operations, an established central location. If records are kept centrally. (1) The address and phone number of the place where the records are kept must be available at the work site; and there must be someone available at the central location during normal business hours to provide information from the records.

Question: The OSHA No. 300/300A, and the OSHA No. 301 mut be retained in each establishment for how many years following the end of the year which they relate.

Answer: 5 calendar year

Question: What is the base penalty for failing to properly maintain OSHA logs?

Answer: $1000

Question: The minimum number of employees required for an employer to obtain worker’s compensation insurance is________ employees.

Answer: 1 employee

Question: What are the 6 types of bonds most commonly used in the construction industry?

Answer: Bid Bond, Performance Bond, Payment Bond, Conditional Bond, Maintenance Bond, and Supply Bond

Question: What is a Bid Bond?

Answer: The Bid Bond is a guarantee that if the contractor is awarded the job, he will enter into the contract at the stipulated price and will provide the required performance bond and payment bond.

Question: What are the 2 types of bid bonds?

Answer: The 2 types of bid bonds are the Forfeiture Obligation and the Difference in Bid.

Question: What is a Forfeiture Obligation bid bond?

Answer: A Foreiture Obligation bond states that if you are the low bidder and you do no enter into a contract according to the bid documents, then you will forfeit the bid amount stated of the bid bond.

Question: What is a Difference in Bid bid bond?

Answer: The Difference in Bid bond states that if you are the lowest bidder and do not enter into the contract you will pay the difference in price between you and the next highest qualified bidder.

Question: What is a surety?

Answer: A person or entity that takes responsibility for another’s performance.

Question: What is a Performance Bond?

Answer: A performance bond guarantees that the contractor will perform the work as required by the contract.

Question: What is a Payment Bond?

Answer: The payment bond guarantees that the contractor will pay all subcontractors, labor and material suppliers who have provided labor and materials on the project.

Question: What is a Maintenance Bond?

Answer: The maintenance bond provides that the contractor’s work will be free from defect in materials and workmanship over a specified period in time set forth in the bond.

Question: Who prepares the project schedule?

Answer: The Project Manager

Question: How often should the project schedule be reviewed and updated?

Answer: At least once every 30 days.

Question: What is a contract?


  1. A Contract is a mututal manifestation (or understanding) of assent to particular duties or obligations, which is supported by consideration (consideration + an exchange of something of calue to one side or harm to the other).
  2. A offer, and acceptance (mirror image) of the offer, supported by consideration.

Question: Who has the duty to record the notice of commencement in the public records of the county where the real property is being improved?

Answer: The Owner if there is no construction loan. The lender is required to record the Notice of Commencement if there is a construction loan.

Question: When must the Notice of Commencement be recorded?

Answer: Before the work begins but not sooner than 90 days before the work begins.

Question: Is the Owner required to post a copy of the Notice of Commencement at the job?

Answer: No

Question: Who is required to sign the Notice of Commencement?

Answer: The Owner

Question: What is Back Charge Preparation and Control?

Answer: When a contractor has to perform extra work for a subcontractor or material vendor it will proceed to recover the cost in the form of a back charge. Before commencing and back charge work, the contractor must be sure there is a legitimate reason for performing a subcontractor’s work or correcting a vendor’s error with its own forces and that there is a means of recovering the costs. The subcontractor/vendor should be given every opportunity to perform the work prior to commencing back charge work by the contractor’s forces. If the subcontractor/vendor fails to remediate the condition after proper notification and ample opportunity, then the back charge procedure should be initiated.

Question: What is a subcontractor?

Answer: A subcontractor is defined as any business entity providing labor and material on the project site. This includes cranes, hoists and other equipment rented with operators. A subcontract agreement should be executed for all subcontractors.

Question: The ___________________________ should be jointly prepared with a material and equipment schedule.

Answer: project schedule

Question: Who prepares the project schedule?

Answer: The project manager

Question: The project schedule should be at a minimum in conformance with the __________________________________ and in sufficient detail to allow adequiate control of the project.

Answer: Contract Requirements

Question: If a contractor is unable to reasonably estimate the percentage of work performed or the total costs to coppete contracts, the contractor must use the _________________________________________.

Answer: Completed Contract Method

Question: The completed contract method may be used by companies that have sales less than _____________________.

Answer: $10,000,000

Question: When is profit recognized when using the completed contract method?

Answer: When the contract is fully or very nearly completed. Very nearly completed is a contract in excells of 98% or 99% completed.

Question: In many cases contractors will not recognize that the contract is completed until the owner __________________________.

Answer: Has accepted it

Question: Under the completed contract method, the billings for work completed are treated as a ________________________ on the balance sheet of the contractor who uses the completed contract method.

Answer: liability

Question: Under the completed contract method the costs incurred on contracts are treated as ________________.

Answer: Assets

Question: The Drug-Free Workplace Act covers employers on all government contracts where the employer’s contract is for ______________ or more.

Answer: $25,000

Question: An employer not having a drug-testing program shall ensure that at least ___________ days elapse between a general one-time notice to all emplyees that a drug testing program is being implemented.

Answer: 60 days

Question: What is a Construction Lien?

Answer: A construction lien is a claim or charge against real property and the improvements thereon to secure a debt incurred for the improvememnt of that property. It is a debt, and documentation to make the property collateral for the debt. The documentation is also a notice to the world of the claim against the property.

Question: What is the first element of a construction lien?

Answer: a debt incurred to improve property.

Question: What is the definition of “Contract” in lien law?

Answer: Contract is defined as being an agreement – written, oral, express, or implied (in fact). (A contract implied in law will not support a lien since a contract implied in law is not an agreement but instead is a legal fiction that creates a quasi agreement. )

Question: In order to file a construction lien there must be a contract with the _________________ or a contract with someone that is in a ____________________________ with the ____________ for lien rights to flow.

Answer: Owner, chain of contract, Owner

Question: What is the second element of a construction lien?

Answer: Compliance with the procedure described in the statute.

Question: Under what methods may a properly perfected lien be discharged?


  1. By entering satisfaction of the lien upon the margin of the record thereof in the clerk’s office when not otherwise prohibited by law. This satisfaction shall be signed by the lienor, the lienor’s agent or attorney and attested by said clerk.
  2. By satisfaction of the lienor, duly acknowledged and recorded in the clerk’s office. Any erson who executes a claim of lien shall have authority to execute a satisfaction in the absense of actual notice of lack of authority to any person relying on the same.
  3. By failure to begin an action to enforce the lien withim the time prescribed in this part.
  4. By an order of the circuit court of the county where the property is located, as provided in this subsection. Upon filing a complaint tjherefor by any interested party the clerk shall issue a summons to the lienor to show cause within 20 days why his or her lien should not be enforced by action or vacated and canceled of record.
  5. By recording in the clerk’s office the original or a certified copy of a judgment or decree of a court of competent jurisdiction showing a final determination of the action.

Question: What are the Statutes of Limitation in Florida?

Answer: The Statutes of Limitation for a written agreement in Florida is five years.

Question: Who is exempt from following OSHA standards?

Answer: Religious establishments, Employers of household workers, Individuals who do not have “employees”

Question: Who may finish an incomplete project in the event of the death of the qualifying agent?

Answer: Anyone

Question: A citation issued by a Code Enforcement Officer shall state what?

Answer: 1) The time and date of issuance. 2) The name and address of the person to whom the ciration is issued. 3) The time and date of the violation. 4) A brief description of the violation and the facts constituting reasonable cause. 5) The name of the code enforecement officer. 6) The procedure for the person to follow in order to pay the ciil penalty or to contest the citation. 7) The applicable civil penalty if the person elects not to contest the citation.

Question: What is builders risk coverage?

Answer: Most builders risk policies cover the structure being constructed and may be extended to cover materials while in transit or at temporary storage facilities.

Question: Who typically purchases builders risk policies?

Answer: The Owner or General Contractor

Question: What is the FUTA tax rate?

Answer: 6.0% and it applies only to the first $7000 of an employee’s wages.

Question: What is a Long Lead Item?

Answer: Long lead items are not readily available through the normal purchasing systems. Long lead items are those that are not your typical “shelf items” such as special doors, custom size windows etc. Long lead items should be identified and ordered as early as possible and periodic checks should be made to check up on the status of the order to avoid delays.

Question: The Social Security Tax rate is _________ percent with a ___________________ wage base.

Answer: 6.2 percent, $118,500 wage base

Question: The Medicare Tax rate is ______ percent with an _________________ wage base.

Answer: 1.45 percent, unlimited

Question: What is a Cost Plus Contract?

Answer: A cost-plus contract provides for reimbursement of defined costs incurred plus a fee for the contractor’s services. Cost-plus contracts often contain terms specifying reimbursable costs, overhead recovery percentages, and fees. The fee may be fixed or a percentage of the reimbursable costs.

Question: What order should liens be paid?

Answer: 1) Laborers 2) Liens of persons other than the contractor 3) Lien of the contractor

Question: In order for oral contracts to be enforceable they must be capable of being performed within _________________.

Answer: 1 Year

Question: An oral contract is not enforceable if it is for more than ______________ dollars.

Answer: $500

Question: What is front end loading?

Answer: Front end loading is a procedure is which progres billings are accelerated by assigning higher value to contract portions to be completed in the early stages.

Question: EPQ asbestos regulations apply to the demolition or renovation of commercial, industrial, and publicly owned buildings and residential units with more the ___________ dwelling units.

Anwer: 4

Question: The EPA must be notified __________ days in advance of the demolision of a project where the is no asbestos detected.

Answer: 10

Question: If an employers deducts less than the correct amount of taxes from an employee and doesn’t make it up by the end of the tax year, who is responsible for paying the underpayment in taxes?

Answer: The employer

Question: Wha can the employer do if they underwithheld taxes from an employee?

Answer: Make it up from later payments to that employee but they must be recovered within the calendar year. Ultimately the employer is resposible for the underwitheld taxes and the reimbursement is a matter of settlement between the employer and the employee.

Question: An employer is responsible for FUTA tax in 2016 on the wages they pay to employees who aren’t farmworders or household workers if…

Answer: a) They paid wages of $1500 or more in any calendar quarter, or b) They had one or more employees for at least some part of a day in any 20 or more different weeks in the calendar year.

Question: What is the FUTA tax rate as of 2016?

Answer: 6.0 % of the first $7000 of wages in a year.

Question: What is the maximum credit in percentage an employer can receive for FUTA?

Answer: 5.4%

Question: What is the FUTA tax rate after receiving the maximum FUTA credit?

Answer: 0.6% = 6.0% – 5.4%

Question: When is an employer entitled to the maximum FUTA credit?

Answer: When they pay their state unemployment taxes in full, on time, and on all the same wages as are subject to FUTA tax, and as long as the state isn’t determined to be a credit reduction state.

Question: For deposit purposes, FUTA taxes, how often should be figured?

Answer: Quarterly

Question: An employer is not required to deposit their FUTA tax liability for any calendar quarter if it is less than ___________. Instead they may ________________________________.

Answer: $500, carry it forward and add it to the liability figured in the next quarter.

Question: What are Supplemental Wages?

Answer: Supplemental wages are wage payments to an employee that aren’t regular wages.

Question: For FUTA purposes, an employer is any person or organization that has paid wages of ________________ or more in a calendar year.

Answer: $1500

Question: Employers must use ___________ to make all federal tax deposits.

Answer: EFT

Question: Every contractor must keep payroll records and other basic records such as time cards, tax records, evidence of fringe benefit payments for a Davis-Bacon project for at least __________ years after the project is completed.

Answer: 3 years

Question: What does FLSA stand for?

Answer: Fair Labor Standards Act

Question: Records for employment taxes must be kept for at least ___________ years?

Answer: 4 Years

Question: What records of employment taxes must be kept?


  1. Your EIN
  2. Amounts and dates of all wage, annuity, and pension payments.
  3. Amounts of tips reported to you by your employer.
  4. Records of allocated tips.
  5. The fair market value of in-kind wages paid.
  6. Names, addresses, social security number, and occupatioons of employees and recipients.
  7. Any employee copies of Forms W-2 and W-2c returned to you as undeliberable
  8. Dates of employment for each employee.
  9. Period for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third party payors made to them.
  10. Copies of emplyees and recipients income tax withholding alowance cetificates (W4 forms)
  11. Dates and amounts of tax deposits you made acknowledgement numbers for deposits made by EFTPS.
  12. Copies of returns filed and confimation numbers
  13. Records of fringe benefits and expense reimbursements provided to your employees, including substantiation.

Questions: Employers with no more than _________ employees at any given time in the calendar years are exempt from OSHA record keeping.

Answer: 10 Years

Question: Employers are required to keep so-called “hard records” such as payroll, employment contracts or agreement, and sales and purchase records for ___________ years.

Answer: 3 years

Question: Employers are required to keep “soft records” for at least ____________ years.

Answer: 2 years

Question: What is FS489?

Answer: Chapter 489 focuses on the law governing licensure of contractors and the standards of practice for the construction industry.

Question: Chapter 489 requires complete financial and business records to be retained for at least _____ years.

Answer: 3 Years

Question: OSHA log and summary No. 300/300A amd supplementary records OSHA No. 301, must be retained for ___________ years.

Answer: 5 years

Question: The Department, for the boards under its jurisdiction, shall have the right to close and terminate deficient license application files __________ years after the board or the department notifies the applicant of the deficiency.

Answer: 2 Years

Question: What is an I-9 form?

Answer: The I-9 is an Employment Eligibility Verification form.

Question: The I-9 must be kept for ______ years after the date of hire or _______ year after the date that the individual no longer works for the employer.

Answer: 3 years, 1 year

Question: The ____________ shall pay for test, inspections, and approvals; if the tests are failed, additional costs shall be borne by the ____________________.

Answer: Owner, Contractor

Question: How many hours per week can a minor who is 14 or 15 work during a week when school is in session?

Answer: 15 hours

Question: How many hours per week can a minor who is 16 or 17 work during a week when school is in session?

Answer: 30 hours

Question: The Department shall forward a licensure renewal notification at least ____________ days prior to the end of a licensure cycle.

Answer: 60 Days

Question: The Department shall forward a notice of pending cancellation of licensure at least _________ days prior to the end of a licensure cycle.

Answer: 60 Days

Question: What is the lean Indoor Air Act?

Answer: The act prohibits smoking in public places except in designated smoking areas.

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