A subcontractor's certificate of insurance expired last month, and its crew is scheduled to mobilize tomorrow. What should the project team require before work starts?
Correct Answer
D) Obtain current evidence of required insurance coverage
Current evidence of required insurance should be obtained before the subcontractor starts work. Other choices accept stale coverage evidence or remove a contract requirement without authorization.
Why This Is the Correct Answer
Current evidence of required insurance should be obtained before the subcontractor starts work. Other choices accept stale coverage evidence or remove a contract requirement without authorization.
Why the Other Options Are Wrong
Option A: Mobilize first and ask for insurance at final payment
In procurement and contracting, Mobilize first and ask for insurance at final payment is the wrong selection for Expired insurance certificate: the option answers a paperwork, payment, or bonding issue.
Option B: Accept the expired certificate because it once existed
The trap in B is Accept the expired certificate because it once existed. That selection is wrong because it answers the Expired insurance certificate prompt with the wrong practical move.
Option C: Delete the insurance requirement from the subcontract
Choice C gives Delete the insurance requirement from the subcontract. Its specific error: it treats Expired insurance certificate as optional.
Memory Technique
Tag the scene with expired insurance certificate: wrong actor or wrong timing means the fix is not Obtain current evidence of required insurance coverage.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Insurance certificate before mobilization" to confirm that Current evidence of required insurance should be obtained before the subcontractor starts work.
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