Florida Contractor Practice Exam

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Prepare for the Florida Contractor Exam with practice tests featuring multiple choice questions and answers. Enhance your knowledge to succeed in various categories of contractor licensing in Florida.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What must a contractor submit along with a bid to assure the owner of their intent to adhere to the contract?

Performance bond
Insurance policy
Bid bond
Warranty

The correct answer is: Bid bond

A contractor must submit a bid bond along with their bid to demonstrate their intent to adhere to the terms of the contract upon being awarded the project. A bid bond serves as a financial guarantee that the contractor will enter into the contract and provide the required performance and payment bonds if selected. This bond protects the owner from the risk of a contractor withdrawing their bid or failing to execute the contract after being awarded the job. The bid bond ensures that the owner can rely on the contractor's commitment and facilitates a smoother bidding process by providing a level of security. If the contractor fails to fulfill their obligations, the bid bond allows the owner to claim a specified sum as compensation for the additional costs they may incur in selecting a replacement contractor. While performance bonds, insurance policies, and warranties are essential components of contract security and risk management, they are typically executed at different stages of the contract process or serve different purposes. The key point with a bid bond is that it is specifically tied to the bid submission, providing assurance before the contract is officially awarded.