AFSB 152 EXAM PREP SOLVED
QUESTIONS ACCURATE ANSWERS
PREMIUM REVIEW
◉ Surety
Answer: The party (usually an insurer) to a surety bond that
guarantees to the oblige that the principal will fulfill an obligation
or perform as required by the underlying contract, permit, or law.
◉ Obligee
Answer: The party to a surety bond that receives the surety's
guarantee that the principal will fulfill an obligation or perform as
promised.
◉ Principal
Answer: The party to a surety bond whose obligation or
performance the surety guarantees.
◉ Suretyship
Answer: The obligation of one entity to answer for the debt,
default, or miscarriage of performance of duties by another entity.
◉ Contract bond
,Answer: A surety bond guaranteeing the fulfillment of obligations
under construction contracts or other types of contracts.
◉ Bid bond
Answer: A contract bond guaranteeing that a contractor bidding
on a construction or supply contract will enter into the contract
and will provide a performance bond if the bid is accepted.
◉ Design/build
Answer: A construction method that offers "one-stop shopping" to
design and construction services.
◉ Construction mortgage
Answer: A loan that provides financing during the construction
period.
The owner usually pays interest on the funds borrowed but makes
no principal payment.
◉ Permanent mortgage
Answer: A loan that provides financing after construction is
complete.
Payments to the lender include both interest and principal, and
the mortgage is expected to be in effect for a number of years.
, ◉ Subcontractor (specialty contractor)
Answer: An independent contractor who specializes in a
particular kind of work and who is engaged by a general
contractor to perform a particular portion of the general
contractor's contract.
◉ Mobilization
Answer: The process before the construction begins that involves
initial activities to facilitate a construction process, such as
moving equipment and a field office onto the job site and
installing temporary utilities.
◉ Critical path method (CPM)
Answer: A process that identifies every major element of the
construction project, as well as a time estimate for each element,
and assembles these elements into one master schedule.
◉ Punch list
Answer: A list of small finishing tasks that must be accomplished
for completion.
◉ General building contractor
Answer: An independent contractor who obtains the primary
contract for a project and either completes all the work or
subcontracts portions (or all) of the work to other independent
contractors who specialize in such work.
QUESTIONS ACCURATE ANSWERS
PREMIUM REVIEW
◉ Surety
Answer: The party (usually an insurer) to a surety bond that
guarantees to the oblige that the principal will fulfill an obligation
or perform as required by the underlying contract, permit, or law.
◉ Obligee
Answer: The party to a surety bond that receives the surety's
guarantee that the principal will fulfill an obligation or perform as
promised.
◉ Principal
Answer: The party to a surety bond whose obligation or
performance the surety guarantees.
◉ Suretyship
Answer: The obligation of one entity to answer for the debt,
default, or miscarriage of performance of duties by another entity.
◉ Contract bond
,Answer: A surety bond guaranteeing the fulfillment of obligations
under construction contracts or other types of contracts.
◉ Bid bond
Answer: A contract bond guaranteeing that a contractor bidding
on a construction or supply contract will enter into the contract
and will provide a performance bond if the bid is accepted.
◉ Design/build
Answer: A construction method that offers "one-stop shopping" to
design and construction services.
◉ Construction mortgage
Answer: A loan that provides financing during the construction
period.
The owner usually pays interest on the funds borrowed but makes
no principal payment.
◉ Permanent mortgage
Answer: A loan that provides financing after construction is
complete.
Payments to the lender include both interest and principal, and
the mortgage is expected to be in effect for a number of years.
, ◉ Subcontractor (specialty contractor)
Answer: An independent contractor who specializes in a
particular kind of work and who is engaged by a general
contractor to perform a particular portion of the general
contractor's contract.
◉ Mobilization
Answer: The process before the construction begins that involves
initial activities to facilitate a construction process, such as
moving equipment and a field office onto the job site and
installing temporary utilities.
◉ Critical path method (CPM)
Answer: A process that identifies every major element of the
construction project, as well as a time estimate for each element,
and assembles these elements into one master schedule.
◉ Punch list
Answer: A list of small finishing tasks that must be accomplished
for completion.
◉ General building contractor
Answer: An independent contractor who obtains the primary
contract for a project and either completes all the work or
subcontracts portions (or all) of the work to other independent
contractors who specialize in such work.
