A contractor has been awarded a $500,000 project. The contract requires a performance bond. Typically, what percentage of the contract value would the performance bond cover?
Correct Answer
C) 100%
Performance bonds typically cover 100% of the contract value to ensure the project owner is fully protected if the contractor defaults.
Why This Is the Correct Answer
Performance bonds typically cover 100% of the contract value to ensure the project owner is fully protected if the contractor defaults.
More NASCLA Questions
Which AIA document contains the general conditions that govern the rights and responsibilities of all parties in a construction contract?
A construction company has direct labor costs of $85,000, direct materials of $120,000, and overhead costs of $45,000 for a project. What is the total job cost?
What is the primary purpose of job cost accounting in construction?
A construction company has current assets of $350,000 and current liabilities of $280,000. What is the company's working capital?
In CSI MasterFormat, which division covers earthwork and site preparation?
In a mechanical drawing, what does 'CFM' typically measure?
In CSI MasterFormat Division 08, which of the following would typically be included?
On a mechanical plan, what does the symbol 'RTU' typically indicate?
What is the minimum preheat temperature for welding ASTM A992 steel when the ambient temperature is 15°F?
A general contractor's balance sheet shows total assets of $850,000, current liabilities of $320,000, and long-term debt of $180,000. What is the company's equity?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A time and materials (T&M) contract specifies labor at $95/hour with a 15% markup on materials. For a particular task, 24 hours of labor were used and materials cost $3,200. What is the total billing for this task?
Next Question
A payment application shows completed work valued at $850,000 with 10% retainage held. Materials stored on-site are valued at $65,000 with 100% retainage held. What is the net amount due to the contractor?