You have just started administrating a contract when management decides to terminate the contract. What should you do FIRST?

You have just started administrating a contract when management decides to terminate the contract. What should you do FIRST? 1. go back to request seller responses 2. go back to plan contracting 3. finish contract administration 4. go to contract closure Answer 4. go to contract closure
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How is Contract closure different from administrative closure?

Contract closure is different from administrative closure in that contract closure: 1. occurs before administrative closure 2. may be done more than once for each contract 3. is the only one to involve the customer 4. includes the return of property Answer 1. occurs before administrative closure
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Concern with choosing a subcontractor

Your project has just been fast tracked and you are looking at bringing in a subcontractor to complete networking quickly. There is no time to issue a request for proposal (REP), so you choose to use a company you have used many times before for software development. A PRIMARY concern in this situation is: 1. […]
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A project manager is in the middle of creating a request for proposal (RFP). What part of the procurement process is he in?

A project manager is in the middle of creating a request for proposal (RFP). What part of the procurement process is he in? 1. Plan purchases and acquisitions 2. request seller responses 3. plan contracting 4. select sellers Answer 3. plan contracting
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Emergency contract terms and conditions

Your company has an emergency and needs contracted work done as soon as possible. Under these circumstances, which of the following would be the MOST helpful to add to the contract? 1. A force majeure classic 2. Requirements as to which subcontractors can be used 3. A clear contract statement of work 4. Incentives Answer […]
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Which of the following is an advantage of centralized contracting?

Which of the following is an advantage of centralized contracting? 1. Gives more loyalty to the project 2. Allows a contracts person to work on a single project 3. Increases company expertise in contracting 4. Gives easier access to contracting expertise Answer 3. Increases company expertise in contracting
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What is the advantage of a fixed price contract for the buyer?

The sponsor and the project manager are discussing what type of contract the project manager plans to use on the project. The buyer points out that the performing organization spent a lot of money hiring a design team to come up with the design. The project manager is concerned that the risk for the buyer […]
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A project performed under a cost reimbursable contract has finally entered the closing process. What must the buyer remember to do?

A project performed under a cost reimbursable contract has finally entered the closing process. What must the buyer remember to do? 1. Make sure that the seller is not adding resources 2. Evaluate the fee he is paying 3. Decrease the risk rating of the project 4. Audit seller’s cost submittals Answer 4. Audit seller’s […]
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Which of the following BEST describes the project manager’s role during the contracting process?

Which of the following BEST describes the project manager’s role during the contracting process? 1. Project manager should tell the contract manager how the contracting process should be handled 2. Project manager should be the negotiator 3. Project manager has only minor involvement 4. Project manager should supply an understanding of the risks of the […]
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What are the seller’s options when changing from cost reimbursable to fixed price contract?

A seller is working on a cost reimbursable (CR) contract when the buyer decides he would like to expand the scope of services and change to a fixed price (FP) contract. All of the following are the seller’s options EXCEPT? 1. completing the original work and rejecting the additional work. 2. negotiating a fixed price […]
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If the contract does not specify corrective action, what should the buyer do?

A routine audit of a cost reimbursable (CR) contract determines that overcharges are being made. If the contract does not specify corrective action, the buyer should: 1. continue to make project payments 2. change the contract to require more frequent audits 3. halt payments until the problem is corrected 4. void the contract and start […]
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The primary objective of incentives clauses in a contract is to?

A project manager for the seller is told by her management that the project should do whatever possible to be awarded incentive money. The primary objective of incentives clauses in a contract is to: 1. help the seller control costs 2. reduce costs for the buyer 3. reduce risk for the seller by shifting risk […]
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All of the following statements concerning bid documentation are incorrect EXCEPT?

All of the following statements concerning bid documentation are incorrect EXCEPT? 1. Well-designed bid documents do not include a contract statement of work 2. Well-designed bid documents can simplify comparison of responses 3. In general, bid documents should not include evaluation criteria 4. Bid documentation must be rigorous with no flexibility to allow consideration of […]
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With a clear contract statement of work, a seller completes work as specified, but the buyer is not pleased with the results. The contract is considered to be?

With a clear contract statement of work, a seller completes work as specified, but the buyer is not pleased with the results. The contract is considered to be: 1. incomplete 2. complete 3. null and void 4. waived Answer 2. complete
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Once signed, a contract is legally binding unless?

Once signed, a contract is legally binding unless: 1. it is declared null and void by either party’s legal counsel 2. one party is unable to perform 3. one party is unable to finance its part of the work 4. its is in violation of applicable law Answer 4. its is in violation of applicable […]
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