The field office receives a written instruction: which insurance usually covers property loss to the work during construction?
Correct Answer
A) Builder's risk insurance
Builder's risk insurance is the controlling requirement: the distractors are related-looking contract or field terms, but they do not match the cited requirement for review item 169.
Why This Is the Correct Answer
Builder's risk insurance is the controlling requirement
Why the Other Options Are Wrong
Option B: Make bid bond the answer for builder's risk
Choice B gives Bid bond. Its specific error: it shifts the question into contract administration money flow.
Option C: Base the builder's risk response on payment bond
Choice C (Payment bond) is rejected because it names a financial document or payment mechanism, not the Builder's risk action/result stated by Builder's risk insurance. The cited answer is Builder's risk insurance.
Option D: Limit builder's risk to noncollusion affidavit
In procurement and contracting, Noncollusion affidavit is the wrong selection for Builder's risk: it points to Noncollusion affidavit, but.
Memory Technique
Link builder's risk to its book condition; a different condition means a different answer than Builder's risk insurance.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Builder's risk" to confirm that Builder's risk insurance is the controlling requirement
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