Vendor & Contractor Management Flashcards
7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Vendor & Contractor Management flashcards as text
Which clause in a vendor contract allows the association to end the agreement if the vendor fails to meet performance standards?
Answer: Termination for cause clause
A termination for cause clause gives the association the right to cancel a contract when the vendor materially breaches their obligations.
A contractor completes roof repairs and submits a final invoice. Before authorizing payment, what should the community manager verify?
Answer: That all punch list items are resolved and a lien waiver is obtained
Verifying punch list completion and obtaining a lien waiver protects the association from mechanic's liens filed by unpaid subcontractors.
What does 'additional insured' status on a vendor's insurance policy mean for a community association?
Answer: The association is covered under the vendor's policy for claims arising from the vendor's work
Being named as additional insured means the association has direct coverage under the vendor's policy for incidents caused by the vendor's activities.
When evaluating competing vendor bids, which factor should a community manager prioritize alongside price?
Answer: Quality of past work, references, licensing, and insurance adequacy
A comprehensive evaluation weighing quality, references, licensing, and insurance ensures the association selects the best value, not just the cheapest bid.
A vendor discovers unexpected structural damage mid-project that requires additional work beyond the original contract. What process should govern the additional costs?
Answer: A written change order approved by authorized parties before additional work begins
A signed change order documents scope changes and associated costs before work proceeds, maintaining budget control and contract integrity.
Why should community associations require vendors to carry workers' compensation insurance?
Answer: To protect the association from liability if a vendor's employee is injured while working on community property
Workers' compensation insurance prevents injured vendor employees from seeking damages directly from the association.
What is the purpose of a vendor pre-qualification process before issuing an RFP?
Answer: To screen vendors for licensing, insurance, financial stability, and experience before they are invited to bid
Pre-qualification filters out unqualified vendors upfront, ensuring only capable firms invest time in the bid process and the association evaluates credible proposals.