Contract Types & Administration Flashcards
7 cards from real ASO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Types & Administration flashcards as text
A security services contract includes a 'most-favored-customer' clause. This means the contractor must:
Answer: Offer the client pricing no higher than the lowest price given to any other comparable customer
A most-favored-customer clause ensures the client always receives the contractor's best available pricing for comparable services.
During contract administration, a 'contract discrepancy report' is typically used to:
Answer: Record instances where the contractor failed to meet contractual requirements
Contract discrepancy reports formally document non-performance issues, creating a paper trail that can support remedies or contract termination.
A client requests that a security contractor add biometric access control monitoring to an existing contract. The contractor prices this new service. This process is called:
Answer: Equitable adjustment
An equitable adjustment modifies contract price and/or schedule to fairly compensate the contractor for approved changes in scope.
What is 'scope creep' in the context of a security services contract?
Answer: Gradual expansion of duties beyond the original contract scope without formal modification
Scope creep occurs when additional tasks are informally added over time, increasing costs without corresponding contract amendments or compensation.
A 'novation agreement' in contract administration occurs when:
Answer: A new contractor officially assumes the rights and obligations of the original contractor
A novation replaces one party in the contract with a new party, requiring the consent of all three parties involved.
Under contract law, 'substantial performance' means a contractor:
Answer: Completed enough of the contract that payment is owed, despite minor deviations
Substantial performance entitles the contractor to payment minus any damages for the minor deficiencies, as long as the core purpose was fulfilled.
A security contract requires the contractor to maintain records of officer hours, incidents, and training for a minimum of three years. This requirement is typically driven by:
Answer: Federal and state record-retention laws and potential litigation needs
Record-retention requirements are usually mandated by applicable laws (such as FLSA and state statutes) and protect both parties in the event of audits or lawsuits.