2022 CM421 Final Practice Exam With Answers (312 Solved Questions)

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2022 CM421 Final Practice Exam With Answers (312 Solved Questions) - Page 1 preview image

1/30Upgrade: free 7-da...CM 4211 Final Exam Quiz Questions31 studiers in the last dayTerms in this set (321)lecture 15lecture 15falseThe termination of a construction insurance policy is always atsubstantial completion of the project?trueAn umbrella policy can be used to increase coverage or addcoverage to another policy?trueAn occurrence policy covers accidents (occurrences) that happenduring the existence of the policy, even if the claim is not madeuntil after the policy is terminated?trueEquipment is generally insured on a job-by-job basis so as not towaste premium when tools are idle?trueWorkers' compensation laws provide that an employee injured orkilled on the job could not sue the employer in exchange forcompensation being paid without the need of proving fault?trueA project involving a navigable stream might require a differentworkers' compensation policy than normally purchased?falseA workers' compensation insurance policy also covers acontractor that has indemnified the owner?falseThe workers' compensation policy premiums are the same in allstates?The premiums to purchase a workers' compensation insurancee usually based on the contract amount?Study sets, textbooks, questions

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2/30trueThe premium structure of a builder's risk policy may be a levelpremium based on the average amount of work for the entireproject?trueLarge construction companies may self-insure?trueMost states impose a statutory liability on employers if employeesare injured or killed performing employment duties?trueEach additional named insured will increase the premium of aninsurance policy?falseA comprehensive general liability policy covers injury or death tothe owner of the project?trueInsurance to cover the cost of injury or death to a third-person isusually called a comprehensive general liability policy?trueA comprehensive general liability policy covers accidentsinvolving vehicles on a work-related mission even if not on thejobsite itself?trueLoss due to strikes are excluded from the builder's risk policies?trueThe AIA A201 General Conditions provides for intermediateindemnification?falseThe AIA A201 General Conditions provides that the contractor willpurchase the builder's risk insurance coverage?trueA named-peril builder's risk policy covers only the risks named inthe policy?trueA builder's risk policy is coverage of the work itself?

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3/30falseA builder's risk policy also covers consequential damages such aslost time or increased cost of performance the contractor maysuffer?falseTemporary structures, such as a jobsite office, are excluded frombuilder's risk policies?falseReplacement value equipment insurance is the least expensivetype of an equipment floater policy?falseWith an insurance policy, the higher the deductible, the higher thepremium?falseConstruction contracts never require a contractor to be insured;rather, it is the contractor's choice?trueConstruction involves more risks than just the construction workitself?falseThe XCU exclusions in a comprehensive general liability policystands for explosion, collapse, and umbrella?lecture 16lecture 16trueThe obligee is the entity to which the guarantee is made?trueBid security is often required when a bid is submitted?trueEarly excess payments by the owner to the contractor will reducethe coverage amount of a performance bond?falseA fabricator is generally considered a subcontractor?trueA bid bond may be in an amount equal to a percentage of the bidamount?trueA performance bond may provide that the surety has the right totake control of the project if the principal fails in the dutiesguaranteed by the bond?

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4/30trueA payment bond guarantees payment to the downstream entitiessuch as subcontractors and material suppliers?trueAn approved list of sureties may be provided on largeconstruction projects?falseA contractor should always require bonds from itssubcontractors?trueA lien discharge bond may be used to guarantee payment to aparticular claimant when the project does not have a paymentbond?trueConstruction surety bonds guarantee the performance of thecontract and/or payment to the entities that provided services ormaterials for the project?falseA payment bond guarantees the owner that the contractor hasbeen paid?falseThe surety is the entity building the project?falseThe principal is the entity being guaranteeing the work by thesurety?falseA bid bond guarantees the owner of the amount of a contractor'sbid?trueA material supplier basically does no work onsite but rathersupplies materials for the project?trueA performance bond guarantees the obligee (owner) that theprincipal (contractor) will perform the contract work inaccordance with the contract documents?falseThe penal sum of a performance bond is never more than 50% ofthe contract amount?truePublic projects require at least a payment bond?

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5/30trueA subcontractor is an entity that does more than just a little workonsite?falseThe penal sum is the limit of the bond; the minimum amountguaranteed by the surety?falseThe principal is the entity being guaranteeing the work by thesurety?trueA payment bond guarantees payment to the downstream entitiessuch as subcontractors and material suppliers?falseA contractor should always require bonds from itssubcontractors?falseThe surety is the entity building the project?trueConstruction surety bonds guarantee the performance of thecontract and/or payment to the entities that provided services ormaterials for the project?trueA bid bond may be in an amount equal to a percentage of the bidamount?trueA material supplier basically does no work onsite but rathersupplies materials for the project?trueA performance bond guarantees the obligee (owner) that theprincipal (contractor) will perform the contract work inaccordance with the contract documents?trueAn approved list of sureties may be provided on largeconstruction projects?lecture 17lecture 17trueThe Miller Act covers repairs to equipment used on the project?

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6/30trueThe Miller Act covers materials furnished to the project that theclaimant supplier reasonably thought would be incorporated intothe project even though they were not?trueA lawsuit filed under the Miller Act must be filed within one year ofthe last activity on the jobsite by the claimant?falseThe Miller Act covers two tiers of entities, including the primecontractor as the first tier?falseAs with the Miller Act, the Louisiana Public Works Act provides thatonly two tiers of entities are covered?falseThe Miller Act affects all public property projects?falseMaterial suppliers to material suppliers are always covered by theMiller Act?falseFirst tier claimants must notify the prime contractor before filing alawsuit to recover amounts owed to it under the Miller Act?falseAttorney fees are included in a Miller Act action?trueLessors of equipment used on a Louisiana public project mustprovide a copy of the equipment lease to the prime contractorand the government within 10 days of the equipment arriving onthe jobsite in order to have rights under the Louisiana act?falseTo preserve the claim, a lawsuit must be filed within one year ofthe recordation of the last time the claimant provided services ormaterials to the project?trueThe filing or a claim with the owner also acts as a fund freeze;thereafter if the owner pays the prime contractor withoutreserving the amount of the claim then the owner itself becomesliable?trueThe federal government is more relaxed in its definitions to thepoint that a fabricator may be classified as a subcontractor?

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7/30trueA notice of completion (or termination) of the project must berecorded by the government in order for the period to file claimsbegins?falseLouisiana requires bonds on all public projects, including verysmall projects?trueA bond provided on a Louisiana public project is considered astatutory bond?truePublic projects require bonds to protect entities that providedservices or materials on a public project?trueUnder Louisiana law, all claimants on a public project (exceptpossibly the prime contractor) have the same deadline for filing itsclaims?trueA concursus action is when all claimants try to prove their claims?falseAttorney fees are never owed under the Louisiana Public WorksAct?trueAn entity cannot place a lien on public property?trueUnder Louisiana law, all claimants on a public project (exceptpossibly the prime contractor) have the same deadline for filing itsclaims?lecture 18lecture 18falseTo be totally safe, a claimant under the Louisiana Private WorksAct should file its claim between 30 and 60 days after recordationof completion or termination by the owner?trueThe priority of payment, if a property is seized and sold under theLouisiana Private Works Act, includes laborers in the secondposition?trueOffsite laborers have no rights under the Louisiana Private WorksAct?

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8/30falseA designer of the project has no rights under the Louisiana PrivateWorks Act?trueLouisiana requires that residential contractors must give a lot ofowner notice of the possibility of a lien being recorded against theowner's lot unless a payment bond is provided?falsePrivate construction projects must be bondedtrueA subcontractor is an entity that performs a specific portion of theproject onsite, and is not a laborer or supplier?trueThe purpose of the Louisiana Private Works Act is to balance theinterests of entities that perform labor on, supply material to,contract work for, or lease movable equipment used on aconstruction project, with the interests of the owner whoconsented or requested the work?falseA claim should use the street address when describing thelocation of the project?trueThe third position of payment if a property is seized and soldunder the Louisiana Private Works Act includes the entity fundingthe project if its mortgage is filed before work has started?falseThe priority of payment if a property is seized and sold under theLouisiana Private Works Act includes all taxes owed by the ownerin the first position?falseTo protect itself, the owner must record the surety bond afterconstruction has started?falseTo protect itself, the owner must record a written notice of theconstruction contract after construction has started?trueSuppliers are entities that provide materials for the construction?trueUnder the Louisiana Private Works Act, the "owner" may not be theactual fee simple owner of the jobsite?

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