AFSB 152 PRACTICE SCRIPT UPDATED 2026
TESTED SOLUTIONS
⫸ Surety. Answer: The party (usually an insurer) to a surety bond that
guarantees to the oblige that the principal will fulfill an obligation or
perform as required by the underlying contract, permit, or law.
⫸ Obligee. Answer: The party to a surety bond that receives the surety's
guarantee that the principal will fulfill an obligation or perform as
promised.
⫸ Principal. Answer: The party to a surety bond whose obligation or
performance the surety guarantees.
⫸ Suretyship. Answer: The obligation of one entity to answer for the
debt, default, or miscarriage of performance of duties by another entity.
⫸ Contract bond. Answer: A surety bond guaranteeing the fulfillment of
obligations under construction contracts or other types of contracts.
⫸ Bid bond. Answer: A contract bond guaranteeing that a contractor
bidding on a construction or supply contract will enter into the contract
and will provide a performance bond if the bid is accepted.
,⫸ Design/build. Answer: A construction method that offers "one-stop
shopping" to design and construction services.
⫸ Construction mortgage. Answer: A loan that provides financing
during the construction period.
The owner usually pays interest on the funds borrowed but makes no
principal payment.
⫸ Permanent mortgage. Answer: A loan that provides financing after
construction is complete.
Payments to the lender include both interest and principal, and the
mortgage is expected to be in effect for a number of years.
⫸ Subcontractor (specialty contractor). Answer: An independent
contractor who specializes in a particular kind of work and who is
engaged by a general contractor to perform a particular portion of the
general contractor's contract.
⫸ Mobilization. Answer: The process before the construction begins
that involves initial activities to facilitate a construction process, such as
moving equipment and a field office onto the job site and installing
temporary utilities.
, ⫸ Critical path method (CPM). Answer: A process that identifies every
major element of the construction project, as well as a time estimate for
each element, and assembles these elements into one master schedule.
⫸ Punch list. Answer: A list of small finishing tasks that must be
accomplished for completion.
⫸ General building contractor. Answer: An independent contractor who
obtains the primary contract for a project and either completes all the
work or subcontracts portions (or all) of the work to other independent
contractors who specialize in such work.
⫸ General engineering Contractor. Answer: A contractor that constructs
locks and dams, power plants, large bridges, sewage and water treatment
plants, or similar projects for public and private owners.
⫸ Heavy and highway construction. Answer: A type of construction
used for highways, bridges, dams, roads, railroad beds, and similar
projects.
⫸ Material Supplier. Answer: Manufacturer or distributor that sells
materials and equipment.
⫸ Change order. Answer: The written consent form the architect and
owner that modifies the construction contract in price and substance.
TESTED SOLUTIONS
⫸ Surety. Answer: The party (usually an insurer) to a surety bond that
guarantees to the oblige that the principal will fulfill an obligation or
perform as required by the underlying contract, permit, or law.
⫸ Obligee. Answer: The party to a surety bond that receives the surety's
guarantee that the principal will fulfill an obligation or perform as
promised.
⫸ Principal. Answer: The party to a surety bond whose obligation or
performance the surety guarantees.
⫸ Suretyship. Answer: The obligation of one entity to answer for the
debt, default, or miscarriage of performance of duties by another entity.
⫸ Contract bond. Answer: A surety bond guaranteeing the fulfillment of
obligations under construction contracts or other types of contracts.
⫸ Bid bond. Answer: A contract bond guaranteeing that a contractor
bidding on a construction or supply contract will enter into the contract
and will provide a performance bond if the bid is accepted.
,⫸ Design/build. Answer: A construction method that offers "one-stop
shopping" to design and construction services.
⫸ Construction mortgage. Answer: A loan that provides financing
during the construction period.
The owner usually pays interest on the funds borrowed but makes no
principal payment.
⫸ Permanent mortgage. Answer: A loan that provides financing after
construction is complete.
Payments to the lender include both interest and principal, and the
mortgage is expected to be in effect for a number of years.
⫸ Subcontractor (specialty contractor). Answer: An independent
contractor who specializes in a particular kind of work and who is
engaged by a general contractor to perform a particular portion of the
general contractor's contract.
⫸ Mobilization. Answer: The process before the construction begins
that involves initial activities to facilitate a construction process, such as
moving equipment and a field office onto the job site and installing
temporary utilities.
, ⫸ Critical path method (CPM). Answer: A process that identifies every
major element of the construction project, as well as a time estimate for
each element, and assembles these elements into one master schedule.
⫸ Punch list. Answer: A list of small finishing tasks that must be
accomplished for completion.
⫸ General building contractor. Answer: An independent contractor who
obtains the primary contract for a project and either completes all the
work or subcontracts portions (or all) of the work to other independent
contractors who specialize in such work.
⫸ General engineering Contractor. Answer: A contractor that constructs
locks and dams, power plants, large bridges, sewage and water treatment
plants, or similar projects for public and private owners.
⫸ Heavy and highway construction. Answer: A type of construction
used for highways, bridges, dams, roads, railroad beds, and similar
projects.
⫸ Material Supplier. Answer: Manufacturer or distributor that sells
materials and equipment.
⫸ Change order. Answer: The written consent form the architect and
owner that modifies the construction contract in price and substance.
