AFSB 152 LATEST 2026 EXAM QUESTIONS AND SOLUTIONS
RATED A+
✔✔What do Design/build contractors offer in terms of benefits......? - ✔✔-Reduced costs
because the owner does not pay a design fee in addition to the construction overhead
and profit
-Reduced planning time because delays in communication among design professionals,
contractors, and the owner are eliminated
-Reduced costs because of the contractor's experience with and knowledge of the costs
associated with various construction techniques and materials
✔✔what are the two types of financing programs typically used for construction...? -
✔✔The construction mortgage and the permanent mortgage
✔✔When does Negotiated construction projects work best....? - ✔✔when the owner has
prequalified the contractor and a high level of mutual trust exists
✔✔When does the Competitive bid process work best....? - ✔✔When the design
professional has prepared plans and specifications that are accurate, complete, and
thoroughly understood by prospective bidders.
✔✔What interdependent items might a CPM chart show - ✔✔-A contractor cannot put a
roof on the building until the structural steel is erected.
-The structural steel cannot be erected until it is fabricated.
-The fabricated structural steel cannot be installed until concrete footers are placed.
-The concrete footers cannot be installed until the property has been excavated.
✔✔What are the types of tasks types of subcontractors specialize in....? - ✔✔excavation
and site preparation, concrete construction, sprinkler installation, steel erection, roofing,
masonry, installing drywall and acoustical tile, flooring, painting, landscaping
✔✔what is a project owner and its representatives responsible for....? - ✔✔preparing,
designing, and approving specifications for the project.
It is the joint responsibility of the architect and the owner to present plans and
specifications from which bidders can readily determine how the project should be built
and what the associated costs should be.
✔✔what is the contractor responsible for...? - ✔✔The general contractor reviews the
plans and specifications and determines which portions of the work to do with its own
personnel. The general contractor invites subcontractors and material suppliers to bid
on specific areas of work before the bid opening date. contractor arranges a bond and
credit if needed.
, ✔✔What are the components a company must have to grow and prosper.....? -
✔✔Adequate working capital, an appropriate capital structure, a sound business plan,
bank credit, a motivated team of quality personnel with complementary talents, good
estimating and cost-accounting systems, timely financial reports or controls, well-
maintained equipment, a backlog of profitable work, continuity of ownership and
management
✔✔what are the five recurrent and industry-wide strategic elements of risk and potential
failure SCHLEIFER identified....? - ✔✔1)Project-size increase
2)Geographic unfamiliarity
3)New types or sectors of construction
4)Key-personnel replacement
5)Managerial immaturity
All of these elements result from conscious management decisions that are clearly
recognizable and often routine business occurrences.
✔✔project-size increase - ✔✔-one of Schleifer's elements of risk
-project size, relative to the size of the company and the size of its usual projects, bears
no direct relationship to profitability.
-a contractor with no experience on a project of greater magnitude may have difficulty
determining what resources are necessary for the larger undertaking.
✔✔Geographic unfamiliarity - ✔✔-the second most common element leading to
contractor failure is undertaking work in a new, unfamiliar territory
-The new territory can differ significantly from that to which the contractor has been
accustomed.
✔✔New types of sectors of construction - ✔✔-overspecialization can limit a contractor
to one type of work, reducing growth opportunities and increasing vulnerability in down-
cycle markets
-Contractors who attempt to diversify often drastically underestimate the entry cost.
-If the contractor does not anticipate the learning-curve cost and does not include it as a
contingency in the price, that contractor may end up getting the project and paying
tuition for a new learning experience in the form of an unprofitable job
✔✔What are the considerable differences between public and private work ....? -
✔✔Bid-list qualifications, Criteria for selecting winning bids, Amount of collaboration
among the contractor, the owner, and others, Quality of work expected and delivered,
Amount of change assumed in the bid or separately contracted for during construction
✔✔Key-Personnel Replacement - ✔✔-one of Schleifer's elements of risk
-the efforts of key personnel are generally responsible for a company's profitability.
-the loss of a profitable top manager can put a construction company at risk until a
suitable replacement is found
RATED A+
✔✔What do Design/build contractors offer in terms of benefits......? - ✔✔-Reduced costs
because the owner does not pay a design fee in addition to the construction overhead
and profit
-Reduced planning time because delays in communication among design professionals,
contractors, and the owner are eliminated
-Reduced costs because of the contractor's experience with and knowledge of the costs
associated with various construction techniques and materials
✔✔what are the two types of financing programs typically used for construction...? -
✔✔The construction mortgage and the permanent mortgage
✔✔When does Negotiated construction projects work best....? - ✔✔when the owner has
prequalified the contractor and a high level of mutual trust exists
✔✔When does the Competitive bid process work best....? - ✔✔When the design
professional has prepared plans and specifications that are accurate, complete, and
thoroughly understood by prospective bidders.
✔✔What interdependent items might a CPM chart show - ✔✔-A contractor cannot put a
roof on the building until the structural steel is erected.
-The structural steel cannot be erected until it is fabricated.
-The fabricated structural steel cannot be installed until concrete footers are placed.
-The concrete footers cannot be installed until the property has been excavated.
✔✔What are the types of tasks types of subcontractors specialize in....? - ✔✔excavation
and site preparation, concrete construction, sprinkler installation, steel erection, roofing,
masonry, installing drywall and acoustical tile, flooring, painting, landscaping
✔✔what is a project owner and its representatives responsible for....? - ✔✔preparing,
designing, and approving specifications for the project.
It is the joint responsibility of the architect and the owner to present plans and
specifications from which bidders can readily determine how the project should be built
and what the associated costs should be.
✔✔what is the contractor responsible for...? - ✔✔The general contractor reviews the
plans and specifications and determines which portions of the work to do with its own
personnel. The general contractor invites subcontractors and material suppliers to bid
on specific areas of work before the bid opening date. contractor arranges a bond and
credit if needed.
, ✔✔What are the components a company must have to grow and prosper.....? -
✔✔Adequate working capital, an appropriate capital structure, a sound business plan,
bank credit, a motivated team of quality personnel with complementary talents, good
estimating and cost-accounting systems, timely financial reports or controls, well-
maintained equipment, a backlog of profitable work, continuity of ownership and
management
✔✔what are the five recurrent and industry-wide strategic elements of risk and potential
failure SCHLEIFER identified....? - ✔✔1)Project-size increase
2)Geographic unfamiliarity
3)New types or sectors of construction
4)Key-personnel replacement
5)Managerial immaturity
All of these elements result from conscious management decisions that are clearly
recognizable and often routine business occurrences.
✔✔project-size increase - ✔✔-one of Schleifer's elements of risk
-project size, relative to the size of the company and the size of its usual projects, bears
no direct relationship to profitability.
-a contractor with no experience on a project of greater magnitude may have difficulty
determining what resources are necessary for the larger undertaking.
✔✔Geographic unfamiliarity - ✔✔-the second most common element leading to
contractor failure is undertaking work in a new, unfamiliar territory
-The new territory can differ significantly from that to which the contractor has been
accustomed.
✔✔New types of sectors of construction - ✔✔-overspecialization can limit a contractor
to one type of work, reducing growth opportunities and increasing vulnerability in down-
cycle markets
-Contractors who attempt to diversify often drastically underestimate the entry cost.
-If the contractor does not anticipate the learning-curve cost and does not include it as a
contingency in the price, that contractor may end up getting the project and paying
tuition for a new learning experience in the form of an unprofitable job
✔✔What are the considerable differences between public and private work ....? -
✔✔Bid-list qualifications, Criteria for selecting winning bids, Amount of collaboration
among the contractor, the owner, and others, Quality of work expected and delivered,
Amount of change assumed in the bid or separately contracted for during construction
✔✔Key-Personnel Replacement - ✔✔-one of Schleifer's elements of risk
-the efforts of key personnel are generally responsible for a company's profitability.
-the loss of a profitable top manager can put a construction company at risk until a
suitable replacement is found
