CEM 100 Test 2 Questions with Correct
Answers
Positive Cash Flow
When cash income is exceeding disbursements for a contractor, this means that the contractor
is experiencing a __________.
straight-line depreciation method
The Simplest Method for Calculating Depreciation method is the _______
backcharges
On a project, the general contractor may perform cleanup or hauling services on behalf of the
subcontractor or because of subcontractors refusal to do so. The typical way for the general to
recover these payments from the respective subcontractor is to subtract them from payments
made by the general to the sub. These deduction are termed______________
one-half
Concerning the decision to buy or rebuild a piece of construction equipment, according to
your class text, the cost of rebuilding a machine is normally ________ or less of the purchase
price of new equipment.
Mechanic's Lien
Is a right created by law to secure payment for work performed and materials furnished in the
improvement of real property, that is, land and improvements on land.
Revenue - Const. Costs - Equip. Costs
In terms of a contractor's net profit before tax, this would be determined from the formula
____________
, Risk Management
Comprehensive approach to handling exposures to loss. Any peril that can cause financial
loss or impairment to the business enterprise is the subject of _______
Named Peril Builders' Risk Insurance
Provides protection for the project, including stored materials, only against loss by FIRE and
LIGHTNING. Only provides coverage for risk's specifically listed.
Owner;Prime Contractor
Project Property insurance may be provided either by the ______ or by the _______
Acts of God
Highway reclamation and other engineering contractors often carry no project insurance of
this kind(specific construction hazards), unless required to do so by the contract, choosing to
self-insure the small risks and relying on "___________" contract clauses to protect them
from major damage to the project.
Builder's Risk Insurance
Provides coverage against loss of or damage to the building throughout the time of its
construction, up until the time of its acceptance from the contractor at the time of completion
of the contractor.
excluded
as a general rule, any loss to specifications, drawing, records, documents, accounts, deeds,
currency, notes, securities or designs is specifically _______________ from a builder's risk
policy.
Subrogation
Answers
Positive Cash Flow
When cash income is exceeding disbursements for a contractor, this means that the contractor
is experiencing a __________.
straight-line depreciation method
The Simplest Method for Calculating Depreciation method is the _______
backcharges
On a project, the general contractor may perform cleanup or hauling services on behalf of the
subcontractor or because of subcontractors refusal to do so. The typical way for the general to
recover these payments from the respective subcontractor is to subtract them from payments
made by the general to the sub. These deduction are termed______________
one-half
Concerning the decision to buy or rebuild a piece of construction equipment, according to
your class text, the cost of rebuilding a machine is normally ________ or less of the purchase
price of new equipment.
Mechanic's Lien
Is a right created by law to secure payment for work performed and materials furnished in the
improvement of real property, that is, land and improvements on land.
Revenue - Const. Costs - Equip. Costs
In terms of a contractor's net profit before tax, this would be determined from the formula
____________
, Risk Management
Comprehensive approach to handling exposures to loss. Any peril that can cause financial
loss or impairment to the business enterprise is the subject of _______
Named Peril Builders' Risk Insurance
Provides protection for the project, including stored materials, only against loss by FIRE and
LIGHTNING. Only provides coverage for risk's specifically listed.
Owner;Prime Contractor
Project Property insurance may be provided either by the ______ or by the _______
Acts of God
Highway reclamation and other engineering contractors often carry no project insurance of
this kind(specific construction hazards), unless required to do so by the contract, choosing to
self-insure the small risks and relying on "___________" contract clauses to protect them
from major damage to the project.
Builder's Risk Insurance
Provides coverage against loss of or damage to the building throughout the time of its
construction, up until the time of its acceptance from the contractor at the time of completion
of the contractor.
excluded
as a general rule, any loss to specifications, drawing, records, documents, accounts, deeds,
currency, notes, securities or designs is specifically _______________ from a builder's risk
policy.
Subrogation
