AFSB 152 Practice Exam ACTUAL EXAM QUESTIONS WITH
AFSB 152 Practice Exam
COMPLETE SOLUTION GUIDE) (MULTIPLE CHOICES) (A+ GRADED
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100% VERIFIED) LATEST VERSION 2025
1. Contractor A submits a bid of $800,000, Contractor B A. Because the next high-
submits $1 million, Contractor C submits $1.2 million, est bid ($1 million) is 25
and Contractor D submits $1.1 million. Which one of percent more than the low
the following explains the outcome of applying the 10 bid ($800,000), which is
percent rule for bids? greater than a 10 percent
difference, the bond un-
A. Because the next highest bid ($1 million) is 25 per- derwriter would careful-
cent more than the low bid ($800,000), which is greater ly investigate the differ-
than a 10 percent difference, the bond underwriter ences and may not issue
would carefully investigate the differences and may the performance and pay-
not issue the performance and payment bonds. ment bonds.
B. Because the difference between the high and low
bids is 50 percent more than the low bid of $800,000,
which is greater than a 10 percent difference, the bond
underwriter would probably decline to issue the per-
formance and payment bonds.
C. Because the average of the next two highest bids is
1.05 million, and the difference between this amount
and the low bid is 31.25 percent more than the low bid
of $800,000, which is greate
2. Which one of the following is true regarding types of D. A basic status report
contact status reports? shows specific and limited
Select one: data for a contract.
A. As comprehensive reports contain cumulative data,
analyzing a series of reports is not necessary.
B. Only the comprehensive report can prove useful in
establishing billing-cost-gross profit relationships.
C. Both basic and comprehensive reports provide a
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complete financial profile.
D. A basic status report shows specific and limited data
for a contract.
3. Samuel has been asked to underwrite a contract bond D. The parent company's
for an entity operating in the U.S. that has an inter- domicile.
national parent. He is only willing to write the bond
through a cooperative underwriting agreement, with
indemnity agreements from the foreign parent and
the U.S. entity. Under this arrangement, it is important
that the indemnification be perfected and enforceable
under the laws of
A. The state where the project owner is located.
B. The location of the project.
C. The state where the U.S. entity is located.
D. The parent company's domicile.
4. Which one of the following describes a problem a pro- A. Government require-
ject owner could encounter when using a design/build ments may require a seal
contractor? on the plans from a pro-
fessional engineer or a
A. Government requirements may require a seal on the registered architect, and
plans from a professional engineer or a registered ar- the design/build contrac-
chitect, and the design/build contractor may not have tor may not have a design-
a designer on staff. er on staff.
B. The design/build contractor charges a separate de-
sign fee in addition to the construction overhead and
profit, so the overall project cost may be high.
C. Increased planning time should be allotted in the
, AFSB 152 Practice Exam
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project for communication among design profession-
als, contractors, and the project owner.
D. The design/build contractor has no experience with
or knowledge of the costs associated with various con-
struction techniques and materials.
5. The party that directly benefits from an enhanced com- B. Contractor.
petitive position in private work because of the surety's
assurance that its capacity to perform has been care-
fully reviewed is the
A. Taxpayers.
B. Contractor.
C. Project owner.
D. Architect or engineer.
6. Stanton Construction was the general contractor on a B. Additional compensa-
construction project for Rowe Industries. The project tion and an extension of
experienced a delay due to a reorganization at Rowe time.
Industries. Because this was classified as a compens-
able delay under the construction contract, Stanton
Construction was entitled to
A. An extension of time only.
B. Additional compensation and an extension of time.
C. Additional compensation only.
D. Terminate the contract without penalty.
7. Which one of the following guarantees completion of D. Lenders bond
a project if the principal fails to perform, in accordance
with the plans and specifications, in the given time
limit and free of liens?
AFSB 152 Practice Exam
COMPLETE SOLUTION GUIDE) (MULTIPLE CHOICES) (A+ GRADED
Study online at https://quizlet.com/_hdq3xp
100% VERIFIED) LATEST VERSION 2025
1. Contractor A submits a bid of $800,000, Contractor B A. Because the next high-
submits $1 million, Contractor C submits $1.2 million, est bid ($1 million) is 25
and Contractor D submits $1.1 million. Which one of percent more than the low
the following explains the outcome of applying the 10 bid ($800,000), which is
percent rule for bids? greater than a 10 percent
difference, the bond un-
A. Because the next highest bid ($1 million) is 25 per- derwriter would careful-
cent more than the low bid ($800,000), which is greater ly investigate the differ-
than a 10 percent difference, the bond underwriter ences and may not issue
would carefully investigate the differences and may the performance and pay-
not issue the performance and payment bonds. ment bonds.
B. Because the difference between the high and low
bids is 50 percent more than the low bid of $800,000,
which is greater than a 10 percent difference, the bond
underwriter would probably decline to issue the per-
formance and payment bonds.
C. Because the average of the next two highest bids is
1.05 million, and the difference between this amount
and the low bid is 31.25 percent more than the low bid
of $800,000, which is greate
2. Which one of the following is true regarding types of D. A basic status report
contact status reports? shows specific and limited
Select one: data for a contract.
A. As comprehensive reports contain cumulative data,
analyzing a series of reports is not necessary.
B. Only the comprehensive report can prove useful in
establishing billing-cost-gross profit relationships.
C. Both basic and comprehensive reports provide a
, AFSB 152 Practice Exam
Study online at https://quizlet.com/_hdq3xp
complete financial profile.
D. A basic status report shows specific and limited data
for a contract.
3. Samuel has been asked to underwrite a contract bond D. The parent company's
for an entity operating in the U.S. that has an inter- domicile.
national parent. He is only willing to write the bond
through a cooperative underwriting agreement, with
indemnity agreements from the foreign parent and
the U.S. entity. Under this arrangement, it is important
that the indemnification be perfected and enforceable
under the laws of
A. The state where the project owner is located.
B. The location of the project.
C. The state where the U.S. entity is located.
D. The parent company's domicile.
4. Which one of the following describes a problem a pro- A. Government require-
ject owner could encounter when using a design/build ments may require a seal
contractor? on the plans from a pro-
fessional engineer or a
A. Government requirements may require a seal on the registered architect, and
plans from a professional engineer or a registered ar- the design/build contrac-
chitect, and the design/build contractor may not have tor may not have a design-
a designer on staff. er on staff.
B. The design/build contractor charges a separate de-
sign fee in addition to the construction overhead and
profit, so the overall project cost may be high.
C. Increased planning time should be allotted in the
, AFSB 152 Practice Exam
Study online at https://quizlet.com/_hdq3xp
project for communication among design profession-
als, contractors, and the project owner.
D. The design/build contractor has no experience with
or knowledge of the costs associated with various con-
struction techniques and materials.
5. The party that directly benefits from an enhanced com- B. Contractor.
petitive position in private work because of the surety's
assurance that its capacity to perform has been care-
fully reviewed is the
A. Taxpayers.
B. Contractor.
C. Project owner.
D. Architect or engineer.
6. Stanton Construction was the general contractor on a B. Additional compensa-
construction project for Rowe Industries. The project tion and an extension of
experienced a delay due to a reorganization at Rowe time.
Industries. Because this was classified as a compens-
able delay under the construction contract, Stanton
Construction was entitled to
A. An extension of time only.
B. Additional compensation and an extension of time.
C. Additional compensation only.
D. Terminate the contract without penalty.
7. Which one of the following guarantees completion of D. Lenders bond
a project if the principal fails to perform, in accordance
with the plans and specifications, in the given time
limit and free of liens?
