NASCLA PRACTICE EXAM QUESTIONS WITH COMPLETE SOLUTIONS

Performance Bond correct answer: Guarantees that the contractor will complete a contract with in its time frame and conditions Payment Bonds correct answer: Guarantees subcontractors and suppliers that they will be paid for work if they perform properly under a contract Maintenance bond correct answer: Guarantees that for stated Typically one year no defective workmanship or material will appear in the completed project Completion bond correct answer: Provide assurance to the financial backers have a construction project but it will be completed on time Fidelity bond correct answer: Covers business owners for losses due to dishonest act by there employees Lien bond correct answer: Guarantees that liens cannot be placed against the owners property by contractors for payment of service Sub contractors bond correct answer: Protects the general contractor in the event that subcontractors do not fully perform the contract and or pay for labor and materials Bank letter of credit correct answer: Is not a Bond but is it cash guaranteed to the owner it is not a guarantee of performance but can be converted to a payment to the owner by a bank or lending institution Bid bond correct answer: Guarantees that the contractor if awarded the job will do the work at the submitted bid price enter