Business and Financial Management
Business and Financial Management
Candidates must understand how a Florida roofing business is structured and kept solvent. Know the difference between a certified contractor, who holds a statewide certificate from DBPR/CILB, and a registered contractor, who holds a local license. Know the insurance and workers' compensation coverage that must be maintained. Florida workers' comp rules are a common trap: exemptions are narrow, and a corporate officer may qualify only in limited circumstances. Do not assume a small crew is automatically exempt.
Financial literacy is tested through estimating, overhead, and cash flow. Two numbers drive profitability: markup and gross margin. Markup is added to cost; margin is the percentage of the selling price left after cost. Contractors who confuse them underprice work.
Lien law is another high-yield area. A Notice to Owner preserves lien rights for parties without a direct contract with the owner. It is generally served before or within 45 days after first furnishing. A Claim of Lien is recorded within 90 days after final furnishing. Missing these dates destroys leverage.
Trap: questions often describe a "20% profit" and expect you to know whether that means markup or margin. Read the wording.
Worked example: Job cost is $10,000; desired gross margin is 20%. Price = cost / (1 - 0.20) = $10,000 / 0.80 = $12,500. A 20% markup would price the job at $12,000 and yield only a 16.7% margin.