Vendor and Contract Management Flashcards
7 cards from real CAM 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 and Contract Management flashcards as text
What is a 'bid bond' commonly required for in apartment property management vendor procurement?
Answer: To guarantee that a vendor will enter into a contract at the bid price if selected
A bid bond is a surety instrument that protects the property owner if the winning bidder refuses to execute the contract at the price submitted.
Which of the following is a key reason apartment managers should competitively bid vendor contracts periodically rather than auto-renewing them?
Answer: To ensure market-competitive pricing and quality standards are maintained
Periodic competitive bidding ensures the property receives fair market pricing and the best available service quality rather than overpaying a comfortable incumbent.
A property manager wants to terminate a vendor contract early due to poor performance. Which contract provision most directly governs this action?
Answer: The termination for cause clause
A termination for cause clause defines the conditions under which the property may end the contract due to the vendor's failure to perform.
A vendor contract for pool maintenance includes a 'cure period.' What does this mean?
Answer: The vendor is given a set number of days to fix documented deficiencies before termination
A cure period gives the vendor a defined window of time to correct contract breaches before the property can exercise its right to terminate.
Which of the following best describes the difference between a fixed-price contract and a time-and-materials contract for apartment vendors?
Answer: A fixed-price contract sets a total agreed-upon cost; a time-and-materials contract charges for actual labor hours and materials used
Fixed-price contracts provide cost certainty, while time-and-materials contracts charge based on actual hours worked and materials consumed, creating variable costs.
When evaluating vendor proposals for a major capital improvement project, which evaluation method provides the most balanced assessment?
Answer: Using a weighted scoring matrix that considers price, experience, references, and insurance
A weighted scoring matrix allows the property to objectively compare vendors on multiple relevant criteria, not price alone.
Which document should a property manager obtain from every vendor before allowing them to perform work on the property?
Answer: A certificate of insurance naming the property as an additional insured
A certificate of insurance naming the property as an additional insured ensures the property is covered under the vendor's policy in the event of a claim.