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
When selecting a vendor for ongoing landscaping services at an apartment community, which factor is MOST important to verify before signing a contract?
Answer: Proof of general liability insurance and workers' compensation coverage
Verifying that a vendor carries adequate general liability insurance and workers' compensation protects the property owner from financial exposure if an accident occurs on-site.
A written vendor contract for apartment communities should always include which of the following elements?
Answer: A clause requiring the vendor to follow all applicable laws and regulations
Contracts should include a compliance clause requiring vendors to follow all applicable laws, reducing the property's legal exposure.
Which of the following best describes a scope of work in a vendor contract?
Answer: A detailed description of the specific services the vendor is expected to perform
A scope of work defines exactly what services the vendor will provide, forming the basis for performance measurement and dispute resolution.
What is the primary purpose of including an indemnification clause in a vendor services agreement?
Answer: To require the vendor to hold the property harmless from claims arising from the vendor's negligence
An indemnification clause shifts legal and financial responsibility to the vendor for claims resulting from their negligent acts or omissions.
A property manager receives a bid from a new vendor that is 30% lower than all other bids. What should the manager do FIRST?
Answer: Investigate the vendor's credentials, references, and insurance before proceeding
An unusually low bid warrants scrutiny of the vendor's qualifications and insurance to ensure quality and liability protection are not being compromised.
Which type of contract gives a vendor a guaranteed amount of work regardless of actual property needs?
Answer: Guaranteed minimum contract
A guaranteed minimum contract commits the property to purchasing a minimum volume of services, providing the vendor with revenue predictability.
When a vendor's performance consistently falls below the standards outlined in the contract, what is the recommended first step for a property manager?
Answer: Document the deficiencies and issue a written notice to the vendor outlining required corrections
Documenting deficiencies and providing written notice creates a record and gives the vendor an opportunity to cure before escalation or termination.