AFSB 152 Exam Questions and Detailed Answers | New Update

AFSB 152 Exam Questions and Detailed
Answers | New Update

The tender preparation stage of estimating begins after... - ✔✔the architect and

owner solicit bids, when the contractors begin their estimating processes

To find clarity on payment bond terms, you can... - ✔✔consult the applicable

and relatively stable case law that does define the terms

A surety needs additional information, such as _____________, to adequately

evaluate the work-backlog risk of granting this bond - ✔✔the contractor's

overall capacity and financial capacity

The Schedule of __________ is one of the most important schedules used by

producers and underwriters when analyzing a contractor's financial statement -

✔✔construction in progress

A potential problem a project owner could encounter when using a design/build

contractor is that government requirements may require a seal on the plans

from a professional engineer or a registered architect, and the design/build

contractor may not have a designer on staff (T/F) - ✔✔T

The design/build contractor charges a separate design fee in addition to the

construction overhead and profit (T/F) - ✔✔F

1|Page
©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.

,You can recognize a small companies tax method by looking at their balance

sheet (T/F) - ✔✔T

Vast majority of small contractors use one method for both tax reporting and

financial reporting - ✔✔F

Bid bonds may not contain specific penal sums or bond penalties (T/F) - ✔✔T

Through a sharing clause in a construction contract, the ___________ is

responsible for cost overruns, and the _________ are responsible cost

underruns - ✔✔contractor



owner and contractor

An obligation of the principal in a bid bond that is not a manuscript bid bond

form is that it must... - ✔✔furnish performance and payment bonds with an

acceptable surety

Hazardous waste bond underwriters can protect the surety from exposure to

third-party liability outside the protection of the bond penalty by... -

✔✔ensuring that the bond does not require the surety to finance the principal

or to engage a completing contractor




2|Page
©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.

,The three tasks that can determine whether the contractor can successfully

perform the work are... - ✔✔estimating, planning, and managing the work to be

performed

So that the underwriter can evaluate the contractor's completed jobs, work

programs, and experience, the principal should provide: - ✔✔Type, size, and

location of work



Largest previous backlog



Profitability

Set-aside programs were developed to... - ✔✔assist minority-owned,

disadvantaged, or women-owned business enterprises

To escape their obligation to indemnify the surety, the principal and

indemnitors must show that... - ✔✔any payments the surety made were in bad

faith

Under a cooperative underwriting arrangement, it is important that the

indemnification be perfected and enforceable under the laws of the... -

✔✔parent company's domicile



3|Page
©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.

, _______ is a form used in trend analysis and forecasting that provides a basis for

comparing the as-given and as-allowed amounts related to a financial statement

- ✔✔Financial statement analysis

The responsibility for presenting project plans and specifications from which

bidders can readily determine how the project should be built and its costs is

that of the... - ✔✔owner and the architect

Items that best characterize the types of statements that interest surety

underwriters are... - ✔✔balance sheets



income statements



cash flow statements



supporting notes and schedules for the past three to five years, including

interim statements for the current fiscal year and concurrent statements for all

indemnitors

_________ best describes the reason for a status inquiry - ✔✔Soliciting an

architect's comments regarding performance of the work



4|Page
©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.