AFSB 152 PRACTICE EXAMINATION 2026
QUESTIONS WITH ANSWERS
GUARANTEED TO PASS.
◉ Construction mortgage. Ans- 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. Ans- 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). Ans- 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. Ans- 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). Ans- 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. Ans- A list of small finishing tasks that must be
accomplished for completion.
◉ General building contractor. Ans- 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. Ans- 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. Ans- A type of construction used
for highways, bridges, dams, roads, railroad beds, and similar projects.
◉ Material Supplier. Ans- Manufacturer or distributor that sells
materials and equipment.
, ◉ Change order. Ans- The written consent form the architect and owner
that modifies the construction contract in price and substance.
◉ Retainage. Ans- The amount that an owner withholds from contract
payments until the project is substantially complete. Alternatively
referred to as retainings or retention.
◉ What do Design/build contractors offer in terms of benefits......?. Ans-
-Reduced costs because the owner does not pay a design fee in addition
to the construction overhead and profit
-Reduced planning time because delays in communication among design
professionals, contractors, and the owner are eliminated
-Reduced costs because of the contractor's experience with and
knowledge of the costs associated with various construction techniques
and materials
◉ what are the two types of financing programs typically used for
construction...?. Ans- The construction mortgage and the permanent
mortgage
◉ When does Negotiated construction projects work best....?. Ans- when
the owner has prequalified the contractor and a high level of mutual trust
exists
QUESTIONS WITH ANSWERS
GUARANTEED TO PASS.
◉ Construction mortgage. Ans- 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. Ans- 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). Ans- 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. Ans- 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). Ans- 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. Ans- A list of small finishing tasks that must be
accomplished for completion.
◉ General building contractor. Ans- 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. Ans- 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. Ans- A type of construction used
for highways, bridges, dams, roads, railroad beds, and similar projects.
◉ Material Supplier. Ans- Manufacturer or distributor that sells
materials and equipment.
, ◉ Change order. Ans- The written consent form the architect and owner
that modifies the construction contract in price and substance.
◉ Retainage. Ans- The amount that an owner withholds from contract
payments until the project is substantially complete. Alternatively
referred to as retainings or retention.
◉ What do Design/build contractors offer in terms of benefits......?. Ans-
-Reduced costs because the owner does not pay a design fee in addition
to the construction overhead and profit
-Reduced planning time because delays in communication among design
professionals, contractors, and the owner are eliminated
-Reduced costs because of the contractor's experience with and
knowledge of the costs associated with various construction techniques
and materials
◉ what are the two types of financing programs typically used for
construction...?. Ans- The construction mortgage and the permanent
mortgage
◉ When does Negotiated construction projects work best....?. Ans- when
the owner has prequalified the contractor and a high level of mutual trust
exists
