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

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    1/30 Upgrade: free 7-da... CM 4211 Final Exam Quiz Questions 31 studiers in the last day Terms in this set (321) lecture 15 lecture 15 false The termination of a construction insurance policy is always at substantial completion of the project? true An umbrella policy can be used to increase coverage or add coverage to another policy? true An occurrence policy covers accidents (occurrences) that happen during the existence of the policy, even if the claim is not made until after the policy is terminated? true Equipment is generally insured on a job-by-job basis so as not to waste premium when tools are idle? true Workers' compensation laws provide that an employee injured or killed on the job could not sue the employer in exchange for compensation being paid without the need of proving fault? true A project involving a navigable stream might require a different workers' compensation policy than normally purchased? false A workers' compensation insurance policy also covers a contractor that has indemnified the owner? false The workers' compensation policy premiums are the same in all states? The premiums to purchase a workers' compensation insurance e usually based on the contract amount? Study sets, textbooks, questions

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    2/30 true The premium structure of a builder's risk policy may be a level premium based on the average amount of work for the entire project? true Large construction companies may self-insure? true Most states impose a statutory liability on employers if employees are injured or killed performing employment duties? true Each additional named insured will increase the premium of an insurance policy? false A comprehensive general liability policy covers injury or death to the owner of the project? true Insurance to cover the cost of injury or death to a third-person is usually called a comprehensive general liability policy? true A comprehensive general liability policy covers accidents involving vehicles on a work-related mission even if not on the jobsite itself? true Loss due to strikes are excluded from the builder's risk policies? true The AIA A201 General Conditions provides for intermediate indemnification? false The AIA A201 General Conditions provides that the contractor will purchase the builder's risk insurance coverage? true A named-peril builder's risk policy covers only the risks named in the policy? true A builder's risk policy is coverage of the work itself?

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    3/30 false A builder's risk policy also covers consequential damages such as lost time or increased cost of performance the contractor may suffer? false Temporary structures, such as a jobsite office, are excluded from builder's risk policies? false Replacement value equipment insurance is the least expensive type of an equipment floater policy? false With an insurance policy, the higher the deductible, the higher the premium? false Construction contracts never require a contractor to be insured; rather, it is the contractor's choice? true Construction involves more risks than just the construction work itself? false The XCU exclusions in a comprehensive general liability policy stands for explosion, collapse, and umbrella? lecture 16 lecture 16 true The obligee is the entity to which the guarantee is made? true Bid security is often required when a bid is submitted? true Early excess payments by the owner to the contractor will reduce the coverage amount of a performance bond? false A fabricator is generally considered a subcontractor? true A bid bond may be in an amount equal to a percentage of the bid amount? true A performance bond may provide that the surety has the right to take control of the project if the principal fails in the duties guaranteed by the bond?

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    4/30 true A payment bond guarantees payment to the downstream entities such as subcontractors and material suppliers? true An approved list of sureties may be provided on large construction projects? false A contractor should always require bonds from its subcontractors? true A lien discharge bond may be used to guarantee payment to a particular claimant when the project does not have a payment bond? true Construction surety bonds guarantee the performance of the contract and/or payment to the entities that provided services or materials for the project? false A payment bond guarantees the owner that the contractor has been paid? false The surety is the entity building the project? false The principal is the entity being guaranteeing the work by the surety? false A bid bond guarantees the owner of the amount of a contractor's bid? true A material supplier basically does no work onsite but rather supplies materials for the project? true A performance bond guarantees the obligee (owner) that the principal (contractor) will perform the contract work in accordance with the contract documents? false The penal sum of a performance bond is never more than 50% of the contract amount? true Public projects require at least a payment bond?

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    5/30 true A subcontractor is an entity that does more than just a little work onsite? false The penal sum is the limit of the bond; the minimum amount guaranteed by the surety? false The principal is the entity being guaranteeing the work by the surety? true A payment bond guarantees payment to the downstream entities such as subcontractors and material suppliers? false A contractor should always require bonds from its subcontractors? false The surety is the entity building the project? true Construction surety bonds guarantee the performance of the contract and/or payment to the entities that provided services or materials for the project? true A bid bond may be in an amount equal to a percentage of the bid amount? true A material supplier basically does no work onsite but rather supplies materials for the project? true A performance bond guarantees the obligee (owner) that the principal (contractor) will perform the contract work in accordance with the contract documents? true An approved list of sureties may be provided on large construction projects? lecture 17 lecture 17 true The Miller Act covers repairs to equipment used on the project?

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    6/30 true The Miller Act covers materials furnished to the project that the claimant supplier reasonably thought would be incorporated into the project even though they were not? true A lawsuit filed under the Miller Act must be filed within one year of the last activity on the jobsite by the claimant? false The Miller Act covers two tiers of entities, including the prime contractor as the first tier? false As with the Miller Act, the Louisiana Public Works Act provides that only two tiers of entities are covered? false The Miller Act affects all public property projects? false Material suppliers to material suppliers are always covered by the Miller Act? false First tier claimants must notify the prime contractor before filing a lawsuit to recover amounts owed to it under the Miller Act? false Attorney fees are included in a Miller Act action? true Lessors of equipment used on a Louisiana public project must provide a copy of the equipment lease to the prime contractor and the government within 10 days of the equipment arriving on the jobsite in order to have rights under the Louisiana act? false To preserve the claim, a lawsuit must be filed within one year of the recordation of the last time the claimant provided services or materials to the project? true The filing or a claim with the owner also acts as a fund freeze; thereafter if the owner pays the prime contractor without reserving the amount of the claim then the owner itself becomes liable? true The federal government is more relaxed in its definitions to the point that a fabricator may be classified as a subcontractor?

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    7/30 true A notice of completion (or termination) of the project must be recorded by the government in order for the period to file claims begins? false Louisiana requires bonds on all public projects, including very small projects? true A bond provided on a Louisiana public project is considered a statutory bond? true Public projects require bonds to protect entities that provided services or materials on a public project? true Under Louisiana law, all claimants on a public project (except possibly the prime contractor) have the same deadline for filing its claims? true A concursus action is when all claimants try to prove their claims? false Attorney fees are never owed under the Louisiana Public Works Act? true An entity cannot place a lien on public property? true Under Louisiana law, all claimants on a public project (except possibly the prime contractor) have the same deadline for filing its claims? lecture 18 lecture 18 false To be totally safe, a claimant under the Louisiana Private Works Act should file its claim between 30 and 60 days after recordation of completion or termination by the owner? true The priority of payment, if a property is seized and sold under the Louisiana Private Works Act, includes laborers in the second position? true Offsite laborers have no rights under the Louisiana Private Works Act?

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    8/30 false A designer of the project has no rights under the Louisiana Private Works Act? true Louisiana requires that residential contractors must give a lot of owner notice of the possibility of a lien being recorded against the owner's lot unless a payment bond is provided? false Private construction projects must be bonded true A subcontractor is an entity that performs a specific portion of the project onsite, and is not a laborer or supplier? true The purpose of the Louisiana Private Works Act is to balance the interests of entities that perform labor on, supply material to, contract work for, or lease movable equipment used on a construction project, with the interests of the owner who consented or requested the work? false A claim should use the street address when describing the location of the project? true The third position of payment if a property is seized and sold under the Louisiana Private Works Act includes the entity funding the project if its mortgage is filed before work has started? false The priority of payment if a property is seized and sold under the Louisiana Private Works Act includes all taxes owed by the owner in the first position? false To protect itself, the owner must record the surety bond after construction has started? false To protect itself, the owner must record a written notice of the construction contract after construction has started? true Suppliers are entities that provide materials for the construction? true Under the Louisiana Private Works Act, the "owner" may not be the actual fee simple owner of the jobsite?

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