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Business & FinanceAdminmedium26% of exam part

Before awarding a Aventura subcontract, the file shows limited financial capacity. Which prequalification step should be completed?

Correct Answer

C) check bonding and references

Subcontractor prequalification should address the specific capacity, licensing, safety, or financial risk before award.

Answer Options
A
accept verbal assurance
B
skip insurance review
C
check bonding and references
D
ignore prior performance

Why This Is the Correct Answer

Subcontractor prequalification should address the specific capacity, licensing, safety, or financial risk before award.

Why the Other Options Are Wrong

Option A: accept verbal assurance

accept verbal assurance may relate to another site control, but it does not remove or guard the subcontractor administration exposure being tested.

Option B: skip insurance review

skip insurance review may relate to another site control, but it does not remove or guard the subcontractor administration exposure being tested.

Option D: ignore prior performance

ignore prior performance may relate to another site control, but it does not remove or guard the subcontractor administration exposure being tested.

Memory Technique

If Estimator Office can still reach the worker, the control is decoration.

Reference Hint

Open-book path: tab Contractor's Manual, 2025 to Business Administration, Subcontractor Prequalification; confirm the administrative duty, record, or control described in the stem.

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