AFSB 152 Exam With 100% Correct
Answers 2023
Surety bond - Correct Answer-A written contract that expresses one party's promise to
answer for another party's failure to do something as promised.
Surety - Correct Answer-The party (usually an insurer) to a surety bond that guarantees
to the oblige that the principal will fulfill an obligation or perform as required by the
underlying contract, permit, or law.
Obligee - Correct Answer-The party to a surety bond that receives the surety's
guarantee that the principal will fulfill an obligation or perform as promised.
Principal - Correct Answer-The party to a surety bond whose obligation or performance
the surety guarantees.
Suretyship - Correct Answer-The obligation of one entity to answer for the debt, default,
or miscarriage of performance of duties by another entity.
Contract bond - Correct Answer-A surety bond guaranteeing the fulfillment of
obligations under construction contracts or other types of contracts.
Bid bond - Correct Answer-A contract bond guaranteeing that a contractor bidding on a
construction or supply contract will enter into the contract and will provide a
performance bond if the bid is accepted.
Design/build - Correct Answer-A construction method that offers "one-stop shopping" to
design and construction services.
Construction mortgage - Correct Answer-A loan that provides financing during the
construction period.
The owner usually pays interest on the funds borrowed but makes no principal payment.
Permanent mortgage - Correct Answer-A loan that provides financing after construction
is complete.
Payments to the lender include both interest and principal, and the mortgage is
expected to be in effect for a number of years.
Subcontractor (specialty contractor) - Correct Answer-An independent contractor who
specializes in a particular kind of work and who is engaged by a general contractor to
perform a particular portion of the general contractor's contract.
, Mobilization - Correct Answer-The process before the construction begins that involves
initial activities to facilitate a construction process, such as moving equipment and a
field office onto the job site and installing temporary utilities.
Critical path method (CPM) - Correct Answer-A process that identifies every major
element of the construction project, as well as a time estimate for each element, and
assembles these elements into one master schedule.
Punch list - Correct Answer-A list of small finishing tasks that must be accomplished for
completion.
General building contractor - Correct Answer-An independent contractor who obtains
the primary contract for a project and either completes all the work or subcontracts
portions (or all) of the work to other independent contractors who specialize in such
work.
General engineering Contractor - Correct Answer-A contractor that constructs locks and
dams, power plants, large bridges, sewage and water treatment plants, or similar
projects for public and private owners.
Heavy and highway construction - Correct Answer-A type of construction used for
highways, bridges, dams, roads, railroad beds, and similar projects.
Material Supplier - Correct Answer-Manufacturer or distributor that sells materials and
equipment.
Change order - Correct Answer-The written consent form the architect and owner that
modifies the construction contract in price and substance.
Retainage - Correct Answer-The amount that an owner withholds from contract
payments until the project is substantially complete. Alternatively referred to as
retainings or retention.
What do Design/build contractors offer in terms of benefits......? - Correct Answer--
Reduced costs because the owner does not pay a design fee in addition to the
construction overhead and profit
-Reduced planning time because delays in communication among design professionals,
contractors, and the owner are eliminated
-Reduced costs because of the contractor's experience with and knowledge of the costs
associated with various construction techniques and materials
what are the two types of financing programs typically used for construction...? - Correct
Answer-The construction mortgage and the permanent mortgage
Answers 2023
Surety bond - Correct Answer-A written contract that expresses one party's promise to
answer for another party's failure to do something as promised.
Surety - Correct Answer-The party (usually an insurer) to a surety bond that guarantees
to the oblige that the principal will fulfill an obligation or perform as required by the
underlying contract, permit, or law.
Obligee - Correct Answer-The party to a surety bond that receives the surety's
guarantee that the principal will fulfill an obligation or perform as promised.
Principal - Correct Answer-The party to a surety bond whose obligation or performance
the surety guarantees.
Suretyship - Correct Answer-The obligation of one entity to answer for the debt, default,
or miscarriage of performance of duties by another entity.
Contract bond - Correct Answer-A surety bond guaranteeing the fulfillment of
obligations under construction contracts or other types of contracts.
Bid bond - Correct Answer-A contract bond guaranteeing that a contractor bidding on a
construction or supply contract will enter into the contract and will provide a
performance bond if the bid is accepted.
Design/build - Correct Answer-A construction method that offers "one-stop shopping" to
design and construction services.
Construction mortgage - Correct Answer-A loan that provides financing during the
construction period.
The owner usually pays interest on the funds borrowed but makes no principal payment.
Permanent mortgage - Correct Answer-A loan that provides financing after construction
is complete.
Payments to the lender include both interest and principal, and the mortgage is
expected to be in effect for a number of years.
Subcontractor (specialty contractor) - Correct Answer-An independent contractor who
specializes in a particular kind of work and who is engaged by a general contractor to
perform a particular portion of the general contractor's contract.
, Mobilization - Correct Answer-The process before the construction begins that involves
initial activities to facilitate a construction process, such as moving equipment and a
field office onto the job site and installing temporary utilities.
Critical path method (CPM) - Correct Answer-A process that identifies every major
element of the construction project, as well as a time estimate for each element, and
assembles these elements into one master schedule.
Punch list - Correct Answer-A list of small finishing tasks that must be accomplished for
completion.
General building contractor - Correct Answer-An independent contractor who obtains
the primary contract for a project and either completes all the work or subcontracts
portions (or all) of the work to other independent contractors who specialize in such
work.
General engineering Contractor - Correct Answer-A contractor that constructs locks and
dams, power plants, large bridges, sewage and water treatment plants, or similar
projects for public and private owners.
Heavy and highway construction - Correct Answer-A type of construction used for
highways, bridges, dams, roads, railroad beds, and similar projects.
Material Supplier - Correct Answer-Manufacturer or distributor that sells materials and
equipment.
Change order - Correct Answer-The written consent form the architect and owner that
modifies the construction contract in price and substance.
Retainage - Correct Answer-The amount that an owner withholds from contract
payments until the project is substantially complete. Alternatively referred to as
retainings or retention.
What do Design/build contractors offer in terms of benefits......? - Correct Answer--
Reduced costs because the owner does not pay a design fee in addition to the
construction overhead and profit
-Reduced planning time because delays in communication among design professionals,
contractors, and the owner are eliminated
-Reduced costs because of the contractor's experience with and knowledge of the costs
associated with various construction techniques and materials
what are the two types of financing programs typically used for construction...? - Correct
Answer-The construction mortgage and the permanent mortgage
