AFSB 152 Simulated Exam with all Correct & 100%
Verified Answers |Guaranteed to Pass
The tender preparation stage of estimating begins after... ✔Correct Answer-the architect and
owner solicit bids, when the contractors begin their estimating processes
To find clarity on payment bond terms, you can... ✔Correct Answer-consult the applicable and
relatively stable case law that does define the terms
A surety needs additional information, such as _____________, to adequately evaluate the
work-backlog risk of granting this bond ✔Correct Answer-the contractor's overall capacity and
financial capacity
The Schedule of __________ is one of the most important schedules used by producers and
underwriters when analyzing a contractor's financial statement ✔Correct Answer-
construction in progress
A potential problem a project owner could encounter when using a design/build contractor is
that government requirements may require a seal on the plans from a professional engineer or
a registered architect, and the design/build contractor may not have a designer on staff (T/F)
✔Correct Answer-T
The design/build contractor charges a separate design fee in addition to the construction
overhead and profit (T/F) ✔Correct Answer-F
You can recognize a small companies tax method by looking at their balance sheet (T/F)
✔Correct Answer-T
Vast majority of small contractors use one method for both tax reporting and financial reporting
✔Correct Answer-F
Bid bonds may not contain specific penal sums or bond penalties (T/F) ✔Correct Answer-T
Through a sharing clause in a construction contract, the ___________ is responsible for cost
overruns, and the _________ are responsible cost underruns ✔Correct Answer-contractor
owner and contractor
An obligation of the principal in a bid bond that is not a manuscript bid bond form is that it
must... ✔Correct Answer-furnish performance and payment bonds with an acceptable surety
Verified Answers |Guaranteed to Pass
The tender preparation stage of estimating begins after... ✔Correct Answer-the architect and
owner solicit bids, when the contractors begin their estimating processes
To find clarity on payment bond terms, you can... ✔Correct Answer-consult the applicable and
relatively stable case law that does define the terms
A surety needs additional information, such as _____________, to adequately evaluate the
work-backlog risk of granting this bond ✔Correct Answer-the contractor's overall capacity and
financial capacity
The Schedule of __________ is one of the most important schedules used by producers and
underwriters when analyzing a contractor's financial statement ✔Correct Answer-
construction in progress
A potential problem a project owner could encounter when using a design/build contractor is
that government requirements may require a seal on the plans from a professional engineer or
a registered architect, and the design/build contractor may not have a designer on staff (T/F)
✔Correct Answer-T
The design/build contractor charges a separate design fee in addition to the construction
overhead and profit (T/F) ✔Correct Answer-F
You can recognize a small companies tax method by looking at their balance sheet (T/F)
✔Correct Answer-T
Vast majority of small contractors use one method for both tax reporting and financial reporting
✔Correct Answer-F
Bid bonds may not contain specific penal sums or bond penalties (T/F) ✔Correct Answer-T
Through a sharing clause in a construction contract, the ___________ is responsible for cost
overruns, and the _________ are responsible cost underruns ✔Correct Answer-contractor
owner and contractor
An obligation of the principal in a bid bond that is not a manuscript bid bond form is that it
must... ✔Correct Answer-furnish performance and payment bonds with an acceptable surety
