Question

1. TRUE OR FALSE: Closed specs are NOT permitted in a private project.

2. The main issue of a double form bond is:

A	These are not enforceable in court

B	These bonds have many regulations attached

C	They are hard to cover by the surety

D	An issue can eat up the bond quickly leaving little for other issues

3. Bonding capacity can be higher if

A	Bonding capacity is based on none of these

B	The contractor confines it to one single project

C	The contractor assumes responsibility for the project

D	Bonding capacity is based on all of these

E	The contractor spreads it over several projects

4. TRUE OR FALSE: For a third party of the contract to recoup damages fro a surety the third party must have had direct contact with the contractor or a sub contractor.

Answer 1

1. False

They can be used in private project and depending upon the requirements of the project.

2. B. These bonds have many regulations attached

Double form bonds are formed with various regulations to secure the bond and protect it from any condition that may affect the working of the bond.

3. E. The contractor spreads it over several projects

The bonding capacity is generally the capcity that determines which projects to pursue for an organization and it may increase if the number of projects are more.

4. True

The third party needs to have direct contract with any of the stakeholders or else it would be difficult for them to reproduce the issue in this context.