1|Page
AFSB 152 EXAM NEWEST ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT VERIFIED
ANSWERS (DETAILED ANSWERS) ALREADY
GRADED A+ 100% GUARANTEED TO PASS
CONCEPTS!!!
The tender preparation stage of estimating begins
after... - ....ANSWER ....✔✔ the architect and owner
solicit bids, when the contractors begin their estimating
processes
To find clarity on payment bond terms, you can... -
....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 - ....ANSWER
....✔✔ the contractor's overall capacity and financial
capacity
The Schedule of __________ is one of the most
important schedules used by producers and underwriters
,2|Page
when analyzing a contractor's financial statement -
....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) - ....ANSWER ....✔✔ T
The design/build contractor charges a separate design
fee in addition to the construction overhead and profit
(T/F) - ....ANSWER ....✔✔ F
You can recognize a small companies tax method by
looking at their balance sheet (T/F) - ....ANSWER
....✔✔ T
Vast majority of small contractors use one method for
both tax reporting and financial reporting - ....ANSWER
....✔✔ F
Bid bonds may not contain specific penal sums or bond
penalties (T/F) - ....ANSWER ....✔✔ T
,3|Page
Through a sharing clause in a construction contract, the
___________ is responsible for cost overruns, and the
_________ are responsible cost underruns - ....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... - ....ANSWER
....✔✔ furnish performance and payment bonds with
an acceptable surety
Hazardous waste bond underwriters can protect the
surety from exposure to third-party liability outside the
protection of the bond penalty by... - ....ANSWER
....✔✔ ensuring that the bond does not require the
surety to finance the principal or to engage a
completing contractor
The three tasks that can determine whether the
contractor can successfully perform the work are... -
....ANSWER ....✔✔ estimating, planning, and
managing the work to be performed
, 4|Page
So that the underwriter can evaluate the contractor's
completed jobs, work programs, and experience, the
principal should provide: - ....ANSWER ....✔✔ Type,
size, and location of work
Largest previous backlog
Profitability
Set-aside programs were developed to... - ....ANSWER
....✔✔ assist minority-owned, disadvantaged, or
women-owned business enterprises
To escape their obligation to indemnify the surety, the
principal and indemnitors must show that... - ....ANSWER
....✔✔ any payments the surety made were in bad
faith
Under a cooperative underwriting arrangement, it is
important that the indemnification be perfected and
enforceable under the laws of the... - ....ANSWER
....✔✔ parent company's domicile
AFSB 152 EXAM NEWEST ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT VERIFIED
ANSWERS (DETAILED ANSWERS) ALREADY
GRADED A+ 100% GUARANTEED TO PASS
CONCEPTS!!!
The tender preparation stage of estimating begins
after... - ....ANSWER ....✔✔ the architect and owner
solicit bids, when the contractors begin their estimating
processes
To find clarity on payment bond terms, you can... -
....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 - ....ANSWER
....✔✔ the contractor's overall capacity and financial
capacity
The Schedule of __________ is one of the most
important schedules used by producers and underwriters
,2|Page
when analyzing a contractor's financial statement -
....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) - ....ANSWER ....✔✔ T
The design/build contractor charges a separate design
fee in addition to the construction overhead and profit
(T/F) - ....ANSWER ....✔✔ F
You can recognize a small companies tax method by
looking at their balance sheet (T/F) - ....ANSWER
....✔✔ T
Vast majority of small contractors use one method for
both tax reporting and financial reporting - ....ANSWER
....✔✔ F
Bid bonds may not contain specific penal sums or bond
penalties (T/F) - ....ANSWER ....✔✔ T
,3|Page
Through a sharing clause in a construction contract, the
___________ is responsible for cost overruns, and the
_________ are responsible cost underruns - ....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... - ....ANSWER
....✔✔ furnish performance and payment bonds with
an acceptable surety
Hazardous waste bond underwriters can protect the
surety from exposure to third-party liability outside the
protection of the bond penalty by... - ....ANSWER
....✔✔ ensuring that the bond does not require the
surety to finance the principal or to engage a
completing contractor
The three tasks that can determine whether the
contractor can successfully perform the work are... -
....ANSWER ....✔✔ estimating, planning, and
managing the work to be performed
, 4|Page
So that the underwriter can evaluate the contractor's
completed jobs, work programs, and experience, the
principal should provide: - ....ANSWER ....✔✔ Type,
size, and location of work
Largest previous backlog
Profitability
Set-aside programs were developed to... - ....ANSWER
....✔✔ assist minority-owned, disadvantaged, or
women-owned business enterprises
To escape their obligation to indemnify the surety, the
principal and indemnitors must show that... - ....ANSWER
....✔✔ any payments the surety made were in bad
faith
Under a cooperative underwriting arrangement, it is
important that the indemnification be perfected and
enforceable under the laws of the... - ....ANSWER
....✔✔ parent company's domicile
