NASCLA EXAM QUESTIONS AND ANSWERS

NASCLA EXAM QUESTIONS AND ANSWERS Performance Bond - ANS Guarantees that the contractor will complete a contract with in its time frame and conditions Payment Bonds - ANS Guarantees subcontractors and suppliers that they will be paid for work if they perform properly under a contract Maintenance bond - ANS Guarantees that for stated Typically one year no defective workmanship or material will appear in the completed project Completion bond - ANS Provide assurance to the financial backers have a construction project but it will be completed on time Fidelity bond - ANS Covers business owners for losses due to dishonest act by there employees Lien bond - ANS Guarantees that liens cannot be placed against the owners property by contractors for payment of service Sub contractors bond - ANS Protects the general contractor in the event that subcontractors do not fully perform the contract and or pay for labor and materials Bank letter of credit - ANS Is not a Bond but is it cash guaranteed to the owner it is not a guarantee of performance but can be converted to a payment to the owner by a bank or lending institution Bid bond - ANS Guarantees that the contractor if awarded the job will do the work at the submitted bid price enter into a contract with the owner and furnish the required performance and payment bonds What is a bond - ANS Bonds provide protection in the event that the contractual obligation's are not met Bond languag