Procurement & Contract Management Flashcards
7 cards from real CAPM 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
What is the purpose of a Procurement Management Plan?
Answer: To describe how procurement processes will be managed throughout the project
The Procurement Management Plan defines how procurement will be planned, executed, and controlled, including contract types and documentation requirements.
Which contract clause protects the seller from liability due to events outside their control, such as natural disasters?
Answer: Force Majeure Clause
A Force Majeure clause excuses a party from performance obligations when extraordinary events beyond their control prevent fulfillment.
During a procurement audit, the project manager notices the seller is billing hours for work not specified in the Statement of Work. This is best addressed through:
Answer: Raising a formal contract claim or dispute
Unauthorized billing that violates the contract terms should be formally disputed through the contract's claims and dispute resolution process.
What is a 'Blanket Purchase Agreement' (BPA) used for?
Answer: Establishing pre-negotiated terms for repeated purchases of standard items
A Blanket Purchase Agreement sets up pre-agreed pricing and terms for recurring purchases of routine goods or services, simplifying the ordering process.
A seller submits a proposal that is significantly lower than all other bids. What concern should this raise for the project manager?
Answer: The seller may not fully understand the scope and could claim additional costs later
An unusually low bid may indicate the seller misunderstood scope, leading to claims, change orders, or inability to complete the work at that price.
What is the role of a 'Contract Administrator' on a project?
Answer: To manage the day-to-day administration and performance of the contract
The Contract Administrator oversees contract compliance, monitors seller performance, processes invoices, and manages changes during contract execution.
In which situation would a Cost Plus Fixed Fee (CPFF) contract be most appropriate?
Answer: When the scope is uncertain and the seller's effort is difficult to predict
CPFF contracts are suited for research, development, or other projects with uncertain scope because the seller is reimbursed all allowable costs plus a fixed fee.