The essential document is the collective bargaining agreement. This binding contract between the employer and the union sets the terms that directly impact pricing and execution for unionized work: wage scales and overtime, benefits, job classifications, shift rules, seniority, work practices, and any hiring or subcontracting requirements tied to the union. By collecting and reviewing the CBA before quoting, you ensure your labor costs are accurate, the scope of work aligns with what the union allows, and you stay compliant with the negotiated rules. Skipping this review can lead to mispriced bids, misclassified labor, or contractual issues once the project begins. Other documents have different roles: a nondisclosure agreement protects confidential information, a master service agreement covers general terms for ongoing work, and a letter of authorization simply designates someone to act on behalf of another party; none of these govern the specific terms for union labor like a CBA does.

Self-funded plans place the responsibility for paying claims directly with the employer. Instead of sending premiums to an insurer, the employer funds actual claim costs from a dedicated account (often managed with a third-party administrator to process claims) and may add stop‑loss coverage to cap large losses. This arrangement is why funding a bank account to cover claims as they’re processed is the best description of the funding mechanism. The other descriptions describe insured models or government-funded schemes, where the insurer or the government bears the claim cost or a fixed premium is paid, which does not apply to self-funding.

Cobra exposure is about who handles the administration of COBRA continuation coverage after a termination. Some PEOs include COBRA administration as part of their services, taking on the responsibility for notices, elections, and premium handling. Others do not assume that exposure and instead leave COBRA duties to the client or to a separate administrator. The pair that does not take on COBRA exposure for termed employees is ADP TotalSource and CoAdvantage. That’s why this option is correct: it identifies the two PEOs that typically don’t handle COBRA administration for terminations, while the other listed PEOs generally include COBRA administration as part of their offerings.

This item tests how data-submission obligations are tied to the size of the client, using WSEs to measure that size. WSEs give a consistent way to count a group’s scale, so procurement rules can decide when more detailed information is needed. When a renewal applies to a mid-sized group, the buyer usually requires claims data to be submitted so they can accurately assess risk, validate pricing, and ensure the renewal reflects actual claims experience. That mid-sized threshold is the point at which the additional data becomes necessary, whereas the smallest groups typically aren’t required to provide claims data and the largest groups may face even broader data-sharing expectations. So, the option describing claims data submission at the mid-sized threshold best fits this rule.