Question: 1.A performance bond submitted by a general contractor to an owner guarantees that the owner will perform according to the conditions of the contract. True

1.A performance bond submitted by a general contractor to an owner guarantees that the owner will perform according to the conditions of the contract.

True

False

2.A general contractor requires a subcontractor to submit a payment bond to the general contractor on the project. Which of the following is the obligee in this situation?

Owner

Architect

Subcontractor

General Contractor

3.Which of the following statements about surety bonds is correct?

A surety assumes it will be required to pay off a certain percentage of the bonds it issues

A surety may seek to recover damages from its principal

A principal transfers risk to the surety when the surety issues a bond

The only two parties involved in a surety bond are the surety company and the principal

A surety bond only covers specific losses during a construction project

4.What type of bond ensures that subcontractors on a project will be paid?

Construction bond

Performance bond

Payment bond

Worker bond

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