AFSB 152 - The Institutes Practice Exam Questions

AFSB 152 - The Institutes Practice Exam Questions 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 - ✔✔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 - ✔✔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 - ✔✔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 · Laborers · Project Owners · Architect or engineer - ✔✔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 - ✔✔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. - ✔✔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