AFSB 152 - The Institutes Exam Questions with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
Lansing Construction Company completed major jobs including road grading, bridges, and base and
paving work. Which one of the following types of contractors is Lansing?
· Heavy and highway construction
· General Engineering contractor
· General Building contractor
· Design/build contractor - (ANSWER)Heavy and highway construction
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
,AFSB 152 - The Institutes Exam Questions with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
· 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.
,AFSB 152 - The Institutes Exam Questions with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
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.
- Mediation develops a solution which is final and binding.
- Mediation often results in shock verdicts. - (ANSWER)Mediation encourages parties to make offers and
counteroffers.
Which one of the following is correct regarding the statute of limitations for filing a lawsuit regarding a
claim under the Miller Act?
- The statute of limitations is one year.
- The statute of limitations is 90 days.
- There is no statute of limitations.
- The statute of limitations is determined by state law. - (ANSWER)The statute of limitations is one year.
Contractor Marshall has been presented with a unit-priced contract from project owner Grayson
Properties. A unit-price contract is used
- For most construction contracts.
, AFSB 152 - The Institutes Exam Questions with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
- To provide a sharing agreement.
- To provide a maximum guaranteed price.
- When the quantity of work cannot be determined in advance. - (ANSWER)When the quantity of work
cannot be determined in advance.
Which one of the following is true regarding joint ventures?
- All partners must participate equally in a joint venture.
- All partners are always fully responsible for the entire project.
- In a silent joint venture, the silent partner has limited responsibility.
- A limited joint venture can be formed to limit an individual's participation. - (ANSWER)A limited joint
venture can be formed to limit an individual's participation.
Which one of the following correctly describes those who must give notice to the prime contractor
under the Miller Act?
- Only second-tier claimants are required to give notice to the prime contractor.
- No one filing a claim under the Miller Act is required to give notice to the prime contractor.
- Only first-tier claimants are required to give notice to the prime contractor.
- All claimants are required to give notice to the prime contractor. - (ANSWER)Only second-tier claimants
are required to give notice to the prime contractor.
Ewing General Contracting (EGC) entered a contract to complete a major renovation for Ralph's
Restaurant. Because Ralph's is located in a tourist town, it was important that the construction work be
completed by May 1. The construction contract included a provision that stated that if the job was not
completed by May 1, EGC would be assessed $500 a day for each day of delay in completing the project.
These damages to be paid by EGC are known as
- Direct damages.
- Consequential damages.
- Liquidated damages.
- Actual damages. - (ANSWER)Liquidated damages.
Answers |Actual Complete Exam |Already Graded A+
Lansing Construction Company completed major jobs including road grading, bridges, and base and
paving work. Which one of the following types of contractors is Lansing?
· Heavy and highway construction
· General Engineering contractor
· General Building contractor
· Design/build contractor - (ANSWER)Heavy and highway construction
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
,AFSB 152 - The Institutes Exam Questions with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
· 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.
,AFSB 152 - The Institutes Exam Questions with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
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.
- Mediation develops a solution which is final and binding.
- Mediation often results in shock verdicts. - (ANSWER)Mediation encourages parties to make offers and
counteroffers.
Which one of the following is correct regarding the statute of limitations for filing a lawsuit regarding a
claim under the Miller Act?
- The statute of limitations is one year.
- The statute of limitations is 90 days.
- There is no statute of limitations.
- The statute of limitations is determined by state law. - (ANSWER)The statute of limitations is one year.
Contractor Marshall has been presented with a unit-priced contract from project owner Grayson
Properties. A unit-price contract is used
- For most construction contracts.
, AFSB 152 - The Institutes Exam Questions with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
- To provide a sharing agreement.
- To provide a maximum guaranteed price.
- When the quantity of work cannot be determined in advance. - (ANSWER)When the quantity of work
cannot be determined in advance.
Which one of the following is true regarding joint ventures?
- All partners must participate equally in a joint venture.
- All partners are always fully responsible for the entire project.
- In a silent joint venture, the silent partner has limited responsibility.
- A limited joint venture can be formed to limit an individual's participation. - (ANSWER)A limited joint
venture can be formed to limit an individual's participation.
Which one of the following correctly describes those who must give notice to the prime contractor
under the Miller Act?
- Only second-tier claimants are required to give notice to the prime contractor.
- No one filing a claim under the Miller Act is required to give notice to the prime contractor.
- Only first-tier claimants are required to give notice to the prime contractor.
- All claimants are required to give notice to the prime contractor. - (ANSWER)Only second-tier claimants
are required to give notice to the prime contractor.
Ewing General Contracting (EGC) entered a contract to complete a major renovation for Ralph's
Restaurant. Because Ralph's is located in a tourist town, it was important that the construction work be
completed by May 1. The construction contract included a provision that stated that if the job was not
completed by May 1, EGC would be assessed $500 a day for each day of delay in completing the project.
These damages to be paid by EGC are known as
- Direct damages.
- Consequential damages.
- Liquidated damages.
- Actual damages. - (ANSWER)Liquidated damages.
