A general contractor's license is suspended by the Florida Construction Industry Licensing Board. Under Florida Administrative Code 61G4, what happens to active construction projects?
Correct Answer
B) All projects must immediately stop until license is reinstated
When a contractor's license is suspended, all contracting activities must cease immediately. The contractor cannot legally continue work on any projects until the license is reinstated or proper arrangements are made with another licensed contractor.
Why This Is the Correct Answer
Under Florida Administrative Code 61G4, when a contractor's license is suspended, all contracting activities must cease immediately. A suspended license means the contractor has lost their legal authority to perform construction work. There are no grace periods or exceptions that allow continued work on existing projects. The suspension is effective immediately and applies to all construction activities regardless of project status or completion percentage.
Why the Other Options Are Wrong
Option A: Projects may continue under supervision of another licensed contractor
Florida law does not provide a 30-day grace period for suspended contractors to complete projects. License suspension is immediate and absolute - no construction work can continue under the suspended license from the moment of suspension.
Option D: Projects may continue for 30 days to allow for completion
The percentage of project completion is irrelevant when a license is suspended. Whether a project is 10% or 90% complete, all work must stop immediately. Florida law makes no distinction based on completion status.
Memory Technique
Think 'SUSPENDED = STOPPED' - when your license is suspended, everything stops immediately, just like a suspended bridge can't carry traffic.
Reference Hint
Florida Administrative Code 61G4 - Disciplinary Actions and License Suspension procedures
More Business & Finance Questions
A general contractor purchases equipment worth $45,000 with a useful life of 9 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?
What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?
A contractor estimates startup costs of $75,000 for equipment, $25,000 for initial inventory, $15,000 for insurance premiums, and $10,000 for working capital. They can finance 70% of the total. How much cash do they need?
When establishing professional relationships with architects and engineers, what is the most important factor for a general contractor to consider?
A partnership agreement for a construction company should address all of the following EXCEPT:
A contractor purchases a truck for $60,000. After 5 years, it has accumulated depreciation of $35,000. What is the truck's book value?
A contractor's business plan projects first-year revenue of $500,000 with a 15% net profit margin. If actual revenue is $450,000 with the same profit margin, what is the variance in net profit?
Using the Modified Accelerated Cost Recovery System (MACRS), construction equipment is typically depreciated over how many years?
A contractor is comparing financing options for equipment purchase. Option A: $80,000 cash purchase. Option B: $20,000 down, $65,000 financed at 6% for 4 years. What is the total cost of Option B?
A contractor purchases equipment using a capital lease with a present value of $120,000. How should this be recorded on the balance sheet?
People Also Study
Related Study Resources
Previous Question
What type of insurance coverage protects a general contractor when their total claims exceed the limits of their primary insurance policies?
Next Question
A material supplier offers a 3% discount for payment within 15 days on a $25,000 order. The contractor's cost of borrowing money is 8% annually. Should the contractor take the discount?
