CNST 302 Test 2 Exam Questions and
Answers (Latest Update 2026)
What kind of contractor would be most apt to maintain an
equipment floater policy? (Choose the best answer -
correct answer ✅Large-scale contractors
Why may a surety a request from an owner the final report on the
contractor's performance - owner's statement concerning the
contractor's handling of the job, changes that were made in the
work, and the final total contract amount? -
correct answer ✅Adjustment of bond premium
__________ contracts are widely used for residential and non-
residential building construction. -
correct answer ✅Lump-sum
In bids and bidding, the offeree is the ______. -
correct answer ✅owner
ABC Roofing was not paid by Joel Construction for a part of roof
work on the ultra-modern Ann Arbor Public Library. Subcontractors
can file a lien on the owners in cases of overly delayed (beyond 90
days after particular work/labor completion) or nonpayment. Can
ABC Roofing file any lien on this library? -
correct answer ✅true
,CNST 302 Test 2 Exam Questions and
Answers (Latest Update 2026)
In a joint venture or prime contracts, the defaulting contractor's
surety is liable for interference or disruption to other participating
contractors' work together with any consequential damages. -
correct answer ✅false
If a performance bond covers the typical one year warranty period,
why do some owners require a warranty or maintenance bond as
well? -
correct answer ✅Some defects show up in more than one year
_______ insurance is purchased by the contractor to protect its
offices, warehouses, and other buildings from physical damage. -
correct answer ✅Property
The Miller Act 1935 requires performance and payment bonds on
all federal projects. How far down the chain does the payment
bond apply? (Choose the best answer) -
correct answer ✅Second-tier subcontractors and suppliers
Under the Miller Act, claim suits authorized by law are brought in
the name of the United States, for the use of the party suing, in the
appropriate district court. Suit is brought and prosecuted by the
, CNST 302 Test 2 Exam Questions and
Answers (Latest Update 2026)
unpaid party's own attorney. Can the attorney's fees be collected by
the claimant? -
correct answer ✅false
Which business property depreciating method is approved for use
by construction companies by the Internal Revenue Service? -
correct answer ✅All of the above
Besides time constraints, why may subcontractors prefer to submit
their final bids at the last minute? (Choose the best answer) -
correct answer ✅Bid shopping
Which insurance policy covers home office overhead costs? -
correct answer ✅Property
Bond premiums will likely be greater for longer construction times.
-
correct answer ✅true
A contractor's employee got injured for failure to wear company-
provided safety hat, and not complying with posted safety
regulations. Is the employee entitled to any payment under the
Answers (Latest Update 2026)
What kind of contractor would be most apt to maintain an
equipment floater policy? (Choose the best answer -
correct answer ✅Large-scale contractors
Why may a surety a request from an owner the final report on the
contractor's performance - owner's statement concerning the
contractor's handling of the job, changes that were made in the
work, and the final total contract amount? -
correct answer ✅Adjustment of bond premium
__________ contracts are widely used for residential and non-
residential building construction. -
correct answer ✅Lump-sum
In bids and bidding, the offeree is the ______. -
correct answer ✅owner
ABC Roofing was not paid by Joel Construction for a part of roof
work on the ultra-modern Ann Arbor Public Library. Subcontractors
can file a lien on the owners in cases of overly delayed (beyond 90
days after particular work/labor completion) or nonpayment. Can
ABC Roofing file any lien on this library? -
correct answer ✅true
,CNST 302 Test 2 Exam Questions and
Answers (Latest Update 2026)
In a joint venture or prime contracts, the defaulting contractor's
surety is liable for interference or disruption to other participating
contractors' work together with any consequential damages. -
correct answer ✅false
If a performance bond covers the typical one year warranty period,
why do some owners require a warranty or maintenance bond as
well? -
correct answer ✅Some defects show up in more than one year
_______ insurance is purchased by the contractor to protect its
offices, warehouses, and other buildings from physical damage. -
correct answer ✅Property
The Miller Act 1935 requires performance and payment bonds on
all federal projects. How far down the chain does the payment
bond apply? (Choose the best answer) -
correct answer ✅Second-tier subcontractors and suppliers
Under the Miller Act, claim suits authorized by law are brought in
the name of the United States, for the use of the party suing, in the
appropriate district court. Suit is brought and prosecuted by the
, CNST 302 Test 2 Exam Questions and
Answers (Latest Update 2026)
unpaid party's own attorney. Can the attorney's fees be collected by
the claimant? -
correct answer ✅false
Which business property depreciating method is approved for use
by construction companies by the Internal Revenue Service? -
correct answer ✅All of the above
Besides time constraints, why may subcontractors prefer to submit
their final bids at the last minute? (Choose the best answer) -
correct answer ✅Bid shopping
Which insurance policy covers home office overhead costs? -
correct answer ✅Property
Bond premiums will likely be greater for longer construction times.
-
correct answer ✅true
A contractor's employee got injured for failure to wear company-
provided safety hat, and not complying with posted safety
regulations. Is the employee entitled to any payment under the
