Procurement & Contract Management Flashcards
7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Procurement & Contract Management flashcards as text
A project manager discovers mid-project that a vendor is consistently delivering materials two weeks late. Which contract clause would BEST give the buyer leverage to remedy this situation?
Answer: Liquidated damages clause
A liquidated damages clause pre-establishes financial penalties for late delivery, giving the buyer contractual leverage without proving actual loss.
Under a Cost-Plus-Incentive-Fee (CPIF) contract, what happens when the actual cost falls below the target cost?
Answer: The buyer and seller share the savings per the share ratio
In a CPIF contract, cost underruns are shared between buyer and seller according to the pre-negotiated share ratio, incentivizing cost efficiency.
Which procurement document is MOST appropriate when the buyer wants to receive competitive price proposals for well-defined, standard goods?
Answer: Request for Quotation (RFQ)
An RFQ is used when specifications are clear and the primary selection criterion is price, making it ideal for standard, well-defined goods.
A project team is evaluating source selection criteria. Which criterion BEST reduces risk when the deliverable requires specialized technical expertise?
Answer: Vendor's past performance and technical capability
Past performance and technical capability directly assess whether a vendor can successfully execute the specialized work, reducing delivery risk.
What is the PRIMARY purpose of a contract Statement of Work (SOW)?
Answer: To define the work the seller is expected to perform
The SOW precisely describes the products, services, or results the seller must provide, forming the technical baseline of the contract.
During contract closeout, the buyer's project manager should FIRST verify which of the following before releasing final payment?
Answer: All deliverables have been formally accepted
Formal acceptance of all deliverables confirms the seller fulfilled contractual obligations, which is the prerequisite for releasing final payment.
A seller submits a claim for additional compensation arguing that the buyer-provided site data was inaccurate. This is BEST described as which type of claim?
Answer: Differing site conditions claim
A differing site conditions claim arises when actual physical conditions at a worksite differ materially from what was represented in contract documents.