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CEM 100 Chapter 7 Questions with Answers
(100% Correct Answers)
The Miller Act concerns surety bonding as it applies to construction contracts
involving ____ projects Answer: federal construction
____ is the term used for the contractors failing to fulfill one or more provisions
of the bond instrument Answer: default
A ____ bond indemnifies the contractor for loss of money or other property
caused by the dishonest acts of its bonded employees Answer: fidelity
Combined performance and payment bonds can be issued on projects under
this single type of bond, there is a ___ between the owner and persons
furnishing labor and material for the project Answer: potential conflict of
interest
In determining the bonding capacity of a contractor, this is the amount
commonly determined based on a multiple of the contractors ____ Answer: net
quick worth
Surety bonds are required by law on federal public construction jobs over
$25,000 by the ____Act Answer: Miller
A surety bond is a type of insurance Answer: false
In surety bonding, the protected entity is referred to as the Answer: obligee
Approximately ___ of all construction firms starting operation today will be out
of business in two years Answer: 20%
Concerning surety bonds, all of the below are correct except ____ Answer:
none of these are correct
Concerning surety bonds, all of the following below are correct except ____
Answer: all of these are correct
CEM 100 Chapter 7 Questions with Answers
(100% Correct Answers)
The Miller Act concerns surety bonding as it applies to construction contracts
involving ____ projects Answer: federal construction
____ is the term used for the contractors failing to fulfill one or more provisions
of the bond instrument Answer: default
A ____ bond indemnifies the contractor for loss of money or other property
caused by the dishonest acts of its bonded employees Answer: fidelity
Combined performance and payment bonds can be issued on projects under
this single type of bond, there is a ___ between the owner and persons
furnishing labor and material for the project Answer: potential conflict of
interest
In determining the bonding capacity of a contractor, this is the amount
commonly determined based on a multiple of the contractors ____ Answer: net
quick worth
Surety bonds are required by law on federal public construction jobs over
$25,000 by the ____Act Answer: Miller
A surety bond is a type of insurance Answer: false
In surety bonding, the protected entity is referred to as the Answer: obligee
Approximately ___ of all construction firms starting operation today will be out
of business in two years Answer: 20%
Concerning surety bonds, all of the below are correct except ____ Answer:
none of these are correct
Concerning surety bonds, all of the following below are correct except ____
Answer: all of these are correct
