CM 3111 Exam 1 EXAM COMPLETE
QUESTIONS WITH CORRECT VERIFIED
ANSWERS UPDATED 2025/2026
VERSION|| ALREADY GRADED
SOLUTIONS FOR A 100%
GUARANTEED PASS!!!
1. A statement that shows sales prices for specific items within the project.
This statement breaks the project into quantifiable components. - ANSWER
✓ Schedule of Values
2. A practice where contractors overvalue the initial items on the project to
generate additional cash flow early in the project to cover the construction
costs and undervalue items performed at the end of the project. - ANSWER
✓ Front-End Loading
3. A percentage of the work that has been completed. - ANSWER ✓ Work in
Place
4. The amount of retainage withheld throughout the construction period that is
given to the contractor upon project completion. - ANSWER ✓ Final
Payment
5. Written documents that describe the conditions and obligations relating to
the agreement. This is not a financial lone or insurance policy, but serves as
an endorsement of the contractor. - ANSWER ✓ Bonds
6. A person who guarantees payment of another party's obligations. -
ANSWER ✓ Surety
7. Bond forms that conform to a particular governing statute; They vary from
one jurisdiction to another. - ANSWER ✓ Statutory Bonds
,8. Bonds used when a statutory form is not required. - ANSWER ✓
Nonstatutory Bonds
9. This ensures that if a contractor is awarded the bid within the time specified,
the contractor will enter into the contract and provide all other specified
bonds. - ANSWER ✓ Bid Bond
10.This guarantees the owner that the contractor will perform all work in
accordance with the contract documents and that the owner will receive the
project built in substantial agreement with the documents. - ANSWER ✓
Performance Bond
11.This guarantees the payment of the contractor's bill for labor and materials
used or supplied on the project. - ANSWER ✓ Payment Bond
12.These protect the prime contractor against financial loss and litigation due to
default by a subcontractor. - ANSWER ✓ Subcontractor Bond
13.This is required of the prime contractor when a state law or municipal
ordinance requires a contractor's license or permit. - ANSWER ✓ License or
Permit Bond
14.This Insurance policy provides benefits to employees or their families if they
are killed or injured during the course of work. - ANSWER ✓ Worker's
Compensation Insurance
15.This Insurance policy protects projects under construction against direct loss
due to fire and lightning. This insurance also covers temporary structures,
shed and equipment stored at the site. - ANSWER ✓ Builder's Risk
Insurance
16.This Insurance policy covers liability arising out of negligent actions by the
contractor and the company's employees, and includes bodily injury,
property damage or loss, and other personal injury such as slander or
damage to reputation. - ANSWER ✓ Commercial General Liability
Insurance
, 17.This Insurance policy covers vehicles used on public roads including cars,
trucks, portable office trailers used on the job site, and construction
equipment that drives on public roads, such as dump trucks. - ANSWER ✓
Automotive Insurance
18.This Insurance policy covers equipment used in waterways, such as barges
and boats and provides similar protection as automotive insurance. -
ANSWER ✓ Marine Insurance
19.This Insurance policy covers off-road construction equipment, such as
backhoes, scrapers, and dump trucks not licensed for use on public road sand
provides similar protection to auto insurance. - ANSWER ✓ Inland Marine
Insurance
20.This Insurance policy covers real property owned by the contractor, such as
office buildings, shops, and warehouses. - ANSWER ✓ Property Insurance
21.This Insurance policy covers the contents of a building, such as computers
and furniture. - ANSWER ✓ Business Personal Property Insurance
22.This Insurance policy covers liability arising from errors or omissions by the
designers of a project. - ANSWER ✓ Errors and Omissions Insurance
23.This Insurance policy goes on top of all the company's insurance, increasing
the limits of coverage. - ANSWER ✓ Umbrella Insurance
24.This Insurance policy may be taken out by a company for key personnel
where the company is the beneficiary to protect the company against losses
due to the death of the employee - ANSWER ✓ Life Insurance
25.These set out the obligations and responsibilities of the parties to the
contract. - ANSWER ✓ Contract Documents
26.This provides cost information to the construction industry so contractors in
the industry can provide accurate estimates and projections for their project
costs. It has become a data standard for government work in terms of
pricing, and is widely used by the industry as a whole - ANSWER ✓ R.S.
Means
QUESTIONS WITH CORRECT VERIFIED
ANSWERS UPDATED 2025/2026
VERSION|| ALREADY GRADED
SOLUTIONS FOR A 100%
GUARANTEED PASS!!!
1. A statement that shows sales prices for specific items within the project.
This statement breaks the project into quantifiable components. - ANSWER
✓ Schedule of Values
2. A practice where contractors overvalue the initial items on the project to
generate additional cash flow early in the project to cover the construction
costs and undervalue items performed at the end of the project. - ANSWER
✓ Front-End Loading
3. A percentage of the work that has been completed. - ANSWER ✓ Work in
Place
4. The amount of retainage withheld throughout the construction period that is
given to the contractor upon project completion. - ANSWER ✓ Final
Payment
5. Written documents that describe the conditions and obligations relating to
the agreement. This is not a financial lone or insurance policy, but serves as
an endorsement of the contractor. - ANSWER ✓ Bonds
6. A person who guarantees payment of another party's obligations. -
ANSWER ✓ Surety
7. Bond forms that conform to a particular governing statute; They vary from
one jurisdiction to another. - ANSWER ✓ Statutory Bonds
,8. Bonds used when a statutory form is not required. - ANSWER ✓
Nonstatutory Bonds
9. This ensures that if a contractor is awarded the bid within the time specified,
the contractor will enter into the contract and provide all other specified
bonds. - ANSWER ✓ Bid Bond
10.This guarantees the owner that the contractor will perform all work in
accordance with the contract documents and that the owner will receive the
project built in substantial agreement with the documents. - ANSWER ✓
Performance Bond
11.This guarantees the payment of the contractor's bill for labor and materials
used or supplied on the project. - ANSWER ✓ Payment Bond
12.These protect the prime contractor against financial loss and litigation due to
default by a subcontractor. - ANSWER ✓ Subcontractor Bond
13.This is required of the prime contractor when a state law or municipal
ordinance requires a contractor's license or permit. - ANSWER ✓ License or
Permit Bond
14.This Insurance policy provides benefits to employees or their families if they
are killed or injured during the course of work. - ANSWER ✓ Worker's
Compensation Insurance
15.This Insurance policy protects projects under construction against direct loss
due to fire and lightning. This insurance also covers temporary structures,
shed and equipment stored at the site. - ANSWER ✓ Builder's Risk
Insurance
16.This Insurance policy covers liability arising out of negligent actions by the
contractor and the company's employees, and includes bodily injury,
property damage or loss, and other personal injury such as slander or
damage to reputation. - ANSWER ✓ Commercial General Liability
Insurance
, 17.This Insurance policy covers vehicles used on public roads including cars,
trucks, portable office trailers used on the job site, and construction
equipment that drives on public roads, such as dump trucks. - ANSWER ✓
Automotive Insurance
18.This Insurance policy covers equipment used in waterways, such as barges
and boats and provides similar protection as automotive insurance. -
ANSWER ✓ Marine Insurance
19.This Insurance policy covers off-road construction equipment, such as
backhoes, scrapers, and dump trucks not licensed for use on public road sand
provides similar protection to auto insurance. - ANSWER ✓ Inland Marine
Insurance
20.This Insurance policy covers real property owned by the contractor, such as
office buildings, shops, and warehouses. - ANSWER ✓ Property Insurance
21.This Insurance policy covers the contents of a building, such as computers
and furniture. - ANSWER ✓ Business Personal Property Insurance
22.This Insurance policy covers liability arising from errors or omissions by the
designers of a project. - ANSWER ✓ Errors and Omissions Insurance
23.This Insurance policy goes on top of all the company's insurance, increasing
the limits of coverage. - ANSWER ✓ Umbrella Insurance
24.This Insurance policy may be taken out by a company for key personnel
where the company is the beneficiary to protect the company against losses
due to the death of the employee - ANSWER ✓ Life Insurance
25.These set out the obligations and responsibilities of the parties to the
contract. - ANSWER ✓ Contract Documents
26.This provides cost information to the construction industry so contractors in
the industry can provide accurate estimates and projections for their project
costs. It has become a data standard for government work in terms of
pricing, and is widely used by the industry as a whole - ANSWER ✓ R.S.
Means
