Requiring a bond on a construction project is one way of weeding out unworthy and irresponsible contractors.True or False

2. When a surety bonds a contractor, the surety is providing credibility and lending their reputation to the contractor.True or False

3.Insurance covers specific losses and transfers risk while a surety bond covers losses of any kind and does not transfer risk.True or False

4.A Performance Bond has a face value of 100 percent of the contract price. True or False

5.Because a Bond is a three-way contract, the surety has an obligation to the oblige and cannot cancel solely for the nonpayment of premium. True or False

6The primary purpose of the bid bond is to ensure that the contractor will provide a labor and material payment bond.True or False .