Utah Contractor Practice Exam

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Prepare for the Utah Contractor Exam with comprehensive quizzes and study resources. Gain confidence by accessing multiple-choice questions designed to enhance your knowledge and skills for the licensing exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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The Miller Act calls for _____ and _____ bonds for all Federal projects costing more than $100,000.

Bid, payment
Payment, performance
Performance, payment
Payment, bid

The correct answer is: Performance, payment

The Miller Act is a federal law that requires contractors on federal construction projects to provide specific types of bonds to protect the government and subcontractors. For federal projects exceeding $100,000, the Act mandates both performance and payment bonds. A performance bond ensures that the contractor completes the project in accordance with the contractual terms. It provides a guarantee that the work will be performed as specified and within budget. If the contractor fails to fulfill their obligations, the bond provides a mechanism for the project owner to recover losses and ensure project completion. A payment bond, on the other hand, protects suppliers and subcontractors by ensuring they get paid for their work and materials. This is crucial in the construction industry, where subcontractors often rely on timely payments to fund their operations. Together, these bonds serve to safeguard the interests of all parties involved in federal construction projects, helping to maintain trust and financial stability within the contracting process.