AFSB 152 PRACTICE EXAM A COMPREHENSIVE
STUDY GUIDE 2026
◉ The project owner for a new shopping plaza being built in
Highville is the Highville Municipal Property Company. The role of
the project owner at the beginning of any construction project is to
· Engage consultants in fields in which it lacks the expertise
necessary for the project
· Define a need for a facility and engage an architect or an engineer
· Furnish an estimated project cost that may be used to negotiate
financing for the project
· Design the facility and prepare the plans and specifications for its
construction.
Answer: Define a need for a facility and engage an architect or an
engineer
◉ In construction contracts, the critical path method
· Ensures that, during mobilization, the crew moves big equipment
from one location to another following the shortest route, in terms
of mileage
· Ensures that, during mobilization, the crew moves big equipment
from one location to another on less-used roads and during times
when traffic is minimal
,· Ensures that work is completed in a logical sequence and that the
project is completed within the time budget specified in the contract
terms
· Ensures that all minor finishing tasks, identified in a punch list, are
completed before the project reaches substantial completion.
Answer: Ensures that work is completed in a logical sequence and
that the project is completed within the time budget specified in the
contract terms
◉ The party that directly benefits from the additional security of
knowing that the contractor has satisfied the surety's
comprehensive prequalification review is the
· Suppliers
· Laborers
· Project Owners
· Architect or engineer.
Answer: Project Owners
◉ Private work is not bid as tightly as public work because all
bidders usually understand that a fair markup of a contractor's work
is expected and that
- Numerous, unexpected change orders would become a nuisance
- The owner, architect, and contractor are likely to collaborate on a
private project
,- The quality of work on private projects is expected to meet only the
specific standards
- When the contractor begins to seek extras, owners and architects
believe they are being mistreated.
Answer: Numerous, unexpected change orders would become a
nuisance
◉ Due to the scope of the project, Cortland Company and May
Contracting agreed to a cost-plus construction contract. Which one
of the following accurately describes a cost-plus construction
contract?
- A cost-plus contract includes cost of work and a fee for overhead
and profit.
- A cost-plus contract is a fixed-price contract with a changes clause.
- A cost-plus contract includes costs of materials plus labor costs.
- A cost-plus contract includes work costs agreed to in advance plus
cost overruns..
Answer: A cost-plus contract includes cost of work and a fee for
overhead and profit.
◉ Which one of the following correctly describes the right of an
owner or a contractor to terminate a contract?
- An owner or a contractor can terminate a contract at any time for
any reasonable cause.
, - Without a termination clause, an owner or a contractor can
terminate a contract only for a material breach of contract.
- Without a termination clause, an owner can terminate a contract,
but a contractor cannot.
- Without a termination clause, an owner or a contractor cannot
terminate a contract for any reason..
Answer: Without a termination clause, an owner or a contractor can
terminate a contract only for a material breach of contract.
◉ A limited liability company is most similar to a:
- Subchapter S corporation.
- Subchapter C corporation.
- Joint venture.
- General partnership..
Answer: Subchapter S corporation:
- Tax liability is passed through to the individual members similar to
the way tax liability is passed to shareholders in S Corps.
◉ Mediation has become a favored form of dispute resolution.
Which one of the following statements is true regarding mediation?
- Mediation is the most time-consuming form of dispute resolution.
- Mediation encourages parties to make offers and counteroffers.
- Mediation develops a solution which is final and binding.
STUDY GUIDE 2026
◉ The project owner for a new shopping plaza being built in
Highville is the Highville Municipal Property Company. The role of
the project owner at the beginning of any construction project is to
· Engage consultants in fields in which it lacks the expertise
necessary for the project
· Define a need for a facility and engage an architect or an engineer
· Furnish an estimated project cost that may be used to negotiate
financing for the project
· Design the facility and prepare the plans and specifications for its
construction.
Answer: Define a need for a facility and engage an architect or an
engineer
◉ In construction contracts, the critical path method
· Ensures that, during mobilization, the crew moves big equipment
from one location to another following the shortest route, in terms
of mileage
· Ensures that, during mobilization, the crew moves big equipment
from one location to another on less-used roads and during times
when traffic is minimal
,· Ensures that work is completed in a logical sequence and that the
project is completed within the time budget specified in the contract
terms
· Ensures that all minor finishing tasks, identified in a punch list, are
completed before the project reaches substantial completion.
Answer: Ensures that work is completed in a logical sequence and
that the project is completed within the time budget specified in the
contract terms
◉ The party that directly benefits from the additional security of
knowing that the contractor has satisfied the surety's
comprehensive prequalification review is the
· Suppliers
· Laborers
· Project Owners
· Architect or engineer.
Answer: Project Owners
◉ Private work is not bid as tightly as public work because all
bidders usually understand that a fair markup of a contractor's work
is expected and that
- Numerous, unexpected change orders would become a nuisance
- The owner, architect, and contractor are likely to collaborate on a
private project
,- The quality of work on private projects is expected to meet only the
specific standards
- When the contractor begins to seek extras, owners and architects
believe they are being mistreated.
Answer: Numerous, unexpected change orders would become a
nuisance
◉ Due to the scope of the project, Cortland Company and May
Contracting agreed to a cost-plus construction contract. Which one
of the following accurately describes a cost-plus construction
contract?
- A cost-plus contract includes cost of work and a fee for overhead
and profit.
- A cost-plus contract is a fixed-price contract with a changes clause.
- A cost-plus contract includes costs of materials plus labor costs.
- A cost-plus contract includes work costs agreed to in advance plus
cost overruns..
Answer: A cost-plus contract includes cost of work and a fee for
overhead and profit.
◉ Which one of the following correctly describes the right of an
owner or a contractor to terminate a contract?
- An owner or a contractor can terminate a contract at any time for
any reasonable cause.
, - Without a termination clause, an owner or a contractor can
terminate a contract only for a material breach of contract.
- Without a termination clause, an owner can terminate a contract,
but a contractor cannot.
- Without a termination clause, an owner or a contractor cannot
terminate a contract for any reason..
Answer: Without a termination clause, an owner or a contractor can
terminate a contract only for a material breach of contract.
◉ A limited liability company is most similar to a:
- Subchapter S corporation.
- Subchapter C corporation.
- Joint venture.
- General partnership..
Answer: Subchapter S corporation:
- Tax liability is passed through to the individual members similar to
the way tax liability is passed to shareholders in S Corps.
◉ Mediation has become a favored form of dispute resolution.
Which one of the following statements is true regarding mediation?
- Mediation is the most time-consuming form of dispute resolution.
- Mediation encourages parties to make offers and counteroffers.
- Mediation develops a solution which is final and binding.
