AFSB 152 FINAL EXAM PAPER 2026
COMPREHENSIVE QUESTIONS AND
ANSWERS
◉ 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.
COMPREHENSIVE QUESTIONS AND
ANSWERS
◉ 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.
