Builder's risk insurance is generally associated with:
Correct Answer
C) Property coverage for the work during construction
Builder's risk is property insurance for the project work during construction. Other choices are bidding, payroll, or payment-release matters.
Why This Is the Correct Answer
Builder's risk is property insurance for the project work during construction. Other choices are bidding, payroll, or payment-release matters.
Why the Other Options Are Wrong
Option A: Treat the bid-opening agenda as the builder's risk documentation
In procurement and contracting, The bid-opening agenda only is the wrong selection for Builder's risk: it tries to bypass the Builder's risk checkpoint.
Option B: Treat worker payroll taxes as the builder's risk exposure
The trap in B is Worker payroll taxes. That selection is wrong because it names a financial document or payment mechanism, not the Builder's risk action/result stated by Property coverage for the work during construction; Builder's risk insurance generally covers property loss to the work during construction.
Option D: Treat final lien waivers after payment as builder's risk coverage
Choice D (Final lien waivers after payment) is rejected because it removes the controlling Builder's risk requirement instead of meeting it.
Memory Technique
Picture builder's risk doing the job; the answer names that job as Property coverage for the work during construction.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Builder's risk concept" to confirm that Builder's risk is property insurance for the project work during construction.
More NASCLA Questions
Bid instructions require bid security with each sealed bid. Which purpose should the estimator associate with that requirement?
A wood deck surface has 320 sf of coverage. Boards have a 5-1/2 in. actual face width, and the order includes an 8 percent cutting allowance. What linear footage is closest?
Using the dimensions shown for the stabilized construction entrance, what is the plan area?
A reroof area requires 14,720 sf of rigid insulation. Boards are 4 ft by 8 ft, and the order includes 5 percent waste. How many boards are needed?
Two addenda revise the drawings before bid day. What must a responsive bidder normally do with those addenda?
A utility trench is 180 ft long, 3 ft wide, and 7 ft deep with vertical sides inside a trench shield. What excavation volume is required?
A 120 ft long Type C trench is cut with a 4 ft bottom width and a 6 ft depth. If side slopes are 1-1/2 horizontal to 1 vertical, what excavation volume is closest?
A storm pipe run needs 240 ft of bedding, 4 ft wide and 6 in. thick. Including a 10 percent ordering allowance, how many cubic yards of bedding aggregate are needed?
A mass excavation produces 1,180 loose cubic yards of material for off-site disposal. End-dump trucks can haul 18 loose cubic yards per trip. What truck count is required?
An asphalt-shingle roof has a slope of 3:12. Under the IBC low-slope asphalt-shingle provisions, what underlayment arrangement is required?
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