ACtE08 · Chapter 8Demo2 · Set 1🏛️ Past Licensure QuestionID: 99bd4cd8
In engineering project contract administration and construction management, what does a 'CAR' insurance policy designate?
In engineering project contract administration and construction management, what does a 'CAR' insurance policy designate?
Multiple Choice Options
- A✓ Correct Option
Contractor's All Risks insurance
- B
Collision Auto Repair insurance
- C
Comprehensive Automobile Reimbursement
- D
Commercial Asset Recovery insurance
Detailed Technical Solution & Explanation
In engineering procurement and construction contracts (FIDIC and Nepal PPA contracts), CAR stands for Contractor's All Risks insurance. It is a comprehensive insurance policy that provides complete physical loss/damage coverage for civil engineering contract works, construction plant and machinery, temporary structures, as well as third-party bodily injury and property damage liabilities arising from site construction activities.
Option Analysis:
•
Option A (Contractor's All Risks insurance): Correct; standard contractual insurance in all engineering and construction projects.
•
Option B (Collision Auto Repair insurance): Incorrect; refers to automotive vehicle collision coverage.
•
Option C (Comprehensive Automobile Reimbursement): Incorrect; automotive reimbursement scheme.
•
Option D (Commercial Asset Recovery insurance): Incorrect; financial recovery terminology.
Reference: Demo2 · Set 1NEC Licensure Syllabus