CAM Vendor and Contract Management 3

Question 1

A property manager discovers that a maintenance vendor has been subcontracting work to an unlicensed third party without authorization. What should the manager do?

Accepted Answer

Notify the vendor in writing that the unauthorized subcontracting violates the contract and demand corrective action

Answer

Ignore the issue as long as the work quality is acceptable

Answer

Pay the subcontractor directly to avoid disputes

Answer

Immediately increase payments to the vendor to discourage subcontracting

Question 2

What is the purpose of an 'assignment clause' in a vendor services contract?

Accepted Answer

To control whether the vendor can transfer the contract to another company without the property's consent

Answer

To assign specific tasks to individual employees of the vendor

Answer

To assign liability for property damage exclusively to the vendor

Answer

To designate which property manager is responsible for vendor oversight

Question 3

Which of the following is a best practice when managing multiple vendor contracts at an apartment community?

Accepted Answer

Maintain a contract tracking spreadsheet or system that records key dates, insurance expiration, and renewal deadlines

Answer

Allow vendors to set their own renewal dates for simplicity

Answer

Store all contracts in the vendor's office

Answer

Limit vendor communications to verbal discussions to reduce paperwork

Question 4

A 'force majeure' clause in a vendor contract is designed to address which situation?

Accepted Answer

Excusing a party's non-performance due to extraordinary events beyond their control such as natural disasters

Answer

Automatic price increases tied to inflation

Answer

Requiring vendors to provide emergency services at no charge

Answer

Mandating that the vendor provide 24/7 emergency response

Question 5

What is the primary risk of relying solely on verbal agreements with property vendors rather than written contracts?

Accepted Answer

Verbal agreements are difficult to enforce and leave the property exposed if a dispute arises

Answer

Vendors may charge lower prices with verbal agreements

Answer

Verbal agreements require fewer insurance requirements

Answer

Written contracts are not legally binding in most states

Question 6

When a property manager negotiates a volume discount with a cleaning vendor in exchange for a multi-year exclusive contract, what risk should the manager consider?

Accepted Answer

The risk of being locked into a long-term relationship if service quality declines, limiting the ability to switch vendors

Answer

The risk that the vendor will hire too many employees

Answer

The risk that other vendors will lower their prices

Answer

The risk of the cleaning vendor merging with a competitor

Question 7

According to best practices for CAM-certified managers, how often should vendor performance be formally reviewed?

Accepted Answer

At least annually, with documentation of performance against contracted standards

Answer

Only when a resident complains about the vendor's work

Answer

Every five years to avoid disrupting long-term vendor relationships

Answer

Only at the time of contract renewal