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Florida Contractor’s Manual, 2021 Edition Chapter 5 of the Florida Contractor’s Manual is one of the most heavily tested chapters on the Business & Finance and Project Management exams. This chapter focuses on contracts, project delivery methods, bidding, change orders, insurance, and risk management—the legal and financial backbone of every construction project. The Chapter 5 Highlighting Guide is designed to direct your attention to the exact clauses, definitions, and procedures that exam writers pull from when creating questions. Instead of reading the chapter blindly, this guide tells you what to highlight, what to memorize, and what to be able to quickly locate during the exam. This chapter teaches you how Florida contractors are expected to operate in real-world construction, including: • Types of construction contracts (lump sum, cost-plus, unit price, GMP, design-build) • How bids are prepared, submitted, and awarded • How change orders are handled and priced • Contractor responsibilities, duties, and liabilities • Insurance requirements and risk transfer • Dispute resolution, termination, and default procedures The Highlighting Guide organizes these topics so you can easily find: • Contract definitions that appear word-for-word on the exam • Key differences between contract types • What actions are legally allowed vs. prohibited • Who is responsible for what when problems occur on a project Because this chapter controls how money, responsibility, and legal risk flow through a job, it produces a large number of scenario-based questions on the Florida GC exam. The Highlighting Guide makes sure you can quickly identify: • When a contractor is financially responsible • When an owner is responsible • When a change order is valid • When a claim or dispute is allowed By following the Chapter 5 Highlighting Guide, you dramatically reduce study time while increasing test accuracy, because you are studying the exact language the exam uses, not unnecessary filler. This chapter is not about construction work — it is about how contractors get paid, stay protected, and stay licensed. Mastering Chapter 5 is one of the biggest keys to passing the Florida General Contractor exams.