AFSB 152 SOLVED QUESTIONS
WITH CORRECT ANSWERS
⫸ Stanton Construction was the general contractor on a construction
project for Rowe Industries. The project experienced a delay due to a
reorganization at Rowe Industries. Because this was classified as a
compensable delay under the construction contract, Stanton
Construction was entitled to
Select one:
A. An extension of time only.
B. Additional compensation and an extension of time.
C. Terminate the contract without penalty.
D. Additional compensation only. Answer: B. Additional compensation
and an extension of time.
⫸ Which one of the following is an advantage of the takeover option?
Select one:
A. The surety must complete the contract irrespective of cost.
B. The surety must collect funds from the obligee as the work
progresses.
C. The obligee may forgive a delay or liquidated damages.
D. The surety waives the penal sum of its performance bond as a
defense. Answer: C. The obligee may forgive a delay or liquidated
damages.
, ⫸ Surety analyst Bill Haywood is using the 10-step process to analyze
Johnson Construction Company for trending and forecasting using its
financial statements and other relevant sources of information. Which
one of the following will be one of Bill's last steps to be done?
Select one:
A. Assessing owner Jim Johnson as to his appropriate business practices
and standards
B. Making financial comparisons using the company's financial
statements
C. Assessing the cash or capital position of the company
D. Looking at status reports for open jobs as of the analyzed dates
Answer: A. Assessing owner Jim Johnson as to his appropriate business
practices and standards
⫸ Contractor Roger Ellis is considering taking his construction
company in a new direction, planning to transition from working in the
public sector to projects in the private sector. Roger will find that one
notable difference between construction contracts for public work and
those for private work is that
Select one:
A. A sealed competitive bid process is used in most private projects.
B. Bidders must usually prequalify with the project owner to win work
in the private sector
C. In the private sector, owners and architects often select the bidders
informally from among their friends and acquaintances.
WITH CORRECT ANSWERS
⫸ Stanton Construction was the general contractor on a construction
project for Rowe Industries. The project experienced a delay due to a
reorganization at Rowe Industries. Because this was classified as a
compensable delay under the construction contract, Stanton
Construction was entitled to
Select one:
A. An extension of time only.
B. Additional compensation and an extension of time.
C. Terminate the contract without penalty.
D. Additional compensation only. Answer: B. Additional compensation
and an extension of time.
⫸ Which one of the following is an advantage of the takeover option?
Select one:
A. The surety must complete the contract irrespective of cost.
B. The surety must collect funds from the obligee as the work
progresses.
C. The obligee may forgive a delay or liquidated damages.
D. The surety waives the penal sum of its performance bond as a
defense. Answer: C. The obligee may forgive a delay or liquidated
damages.
, ⫸ Surety analyst Bill Haywood is using the 10-step process to analyze
Johnson Construction Company for trending and forecasting using its
financial statements and other relevant sources of information. Which
one of the following will be one of Bill's last steps to be done?
Select one:
A. Assessing owner Jim Johnson as to his appropriate business practices
and standards
B. Making financial comparisons using the company's financial
statements
C. Assessing the cash or capital position of the company
D. Looking at status reports for open jobs as of the analyzed dates
Answer: A. Assessing owner Jim Johnson as to his appropriate business
practices and standards
⫸ Contractor Roger Ellis is considering taking his construction
company in a new direction, planning to transition from working in the
public sector to projects in the private sector. Roger will find that one
notable difference between construction contracts for public work and
those for private work is that
Select one:
A. A sealed competitive bid process is used in most private projects.
B. Bidders must usually prequalify with the project owner to win work
in the private sector
C. In the private sector, owners and architects often select the bidders
informally from among their friends and acquaintances.
