AFSB 152 COMPREHENSIVE QUESTIONS
AND SOLUTIONS
◉ Surety
Answer: The party, usually an insurer, that guarantees the
principal's obligation.
◉ Principal
Answer: The party whose obligation or performance is
guaranteed; usually the contractor.
◉ Obligee
Answer: The party protected by the surety bond; usually the
project owner.
◉ Suretyship
Answer: The obligation to answer for another party's debt,
default, or failure to perform.
◉ Contract bond
Answer: A surety bond guaranteeing obligations under a
construction or other contract.
,◉ Bid bond
Answer: Guarantees that the bidder will sign the contract and
provide required final bonds if awarded the job.
◉ Performance bond
Answer: Guarantees completion of the contract according to its
terms.
◉ Payment bond
Answer: Guarantees payment to covered laborers, subcontractors,
and suppliers.
◉ Maintenance bond
Answer: Guarantees correction of defective work during a
maintenance or warranty period.
◉ Supply contract bond
Answer: Guarantees that a supplier will perform a supply contract
according to specifications.
◉ Design/build
Answer: A construction method where one contractor provides
both design and construction services.
◉ Subcontractor
, Answer: An independent contractor hired by a general contractor
to perform a specific portion of work.
◉ Material supplier
Answer: A manufacturer or distributor that sells construction
materials or equipment.
◉ Mobilization
Answer: Preconstruction activities such as moving equipment,
setting up field offices, and installing temporary utilities.
◉ Critical path method (CPM)
Answer: A scheduling method identifying major project activities
and their sequence for timely completion.
◉ Punch list
Answer: A list of small finishing or corrective tasks remaining
near substantial completion.
◉ Change order
Answer: Written approval from the owner and architect
modifying contract scope, price, time, or substance.
◉ Retainage
AND SOLUTIONS
◉ Surety
Answer: The party, usually an insurer, that guarantees the
principal's obligation.
◉ Principal
Answer: The party whose obligation or performance is
guaranteed; usually the contractor.
◉ Obligee
Answer: The party protected by the surety bond; usually the
project owner.
◉ Suretyship
Answer: The obligation to answer for another party's debt,
default, or failure to perform.
◉ Contract bond
Answer: A surety bond guaranteeing obligations under a
construction or other contract.
,◉ Bid bond
Answer: Guarantees that the bidder will sign the contract and
provide required final bonds if awarded the job.
◉ Performance bond
Answer: Guarantees completion of the contract according to its
terms.
◉ Payment bond
Answer: Guarantees payment to covered laborers, subcontractors,
and suppliers.
◉ Maintenance bond
Answer: Guarantees correction of defective work during a
maintenance or warranty period.
◉ Supply contract bond
Answer: Guarantees that a supplier will perform a supply contract
according to specifications.
◉ Design/build
Answer: A construction method where one contractor provides
both design and construction services.
◉ Subcontractor
, Answer: An independent contractor hired by a general contractor
to perform a specific portion of work.
◉ Material supplier
Answer: A manufacturer or distributor that sells construction
materials or equipment.
◉ Mobilization
Answer: Preconstruction activities such as moving equipment,
setting up field offices, and installing temporary utilities.
◉ Critical path method (CPM)
Answer: A scheduling method identifying major project activities
and their sequence for timely completion.
◉ Punch list
Answer: A list of small finishing or corrective tasks remaining
near substantial completion.
◉ Change order
Answer: Written approval from the owner and architect
modifying contract scope, price, time, or substance.
◉ Retainage
