Construction Procurement and Subcontracting Flashcards
6 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Construction Procurement and Subcontracting flashcards as text
A construction auditor reviewing subcontracts should verify that they include flow-down clauses that:
Answer: Pass applicable prime contract terms (e.g., audit rights, insurance, prevailing wage) to subcontractors
Flow-down clauses extend key prime contract obligations—such as audit rights, safety standards, and prevailing wage requirements—to subcontractors.
Bid shopping in construction procurement refers to:
Answer: A general contractor using a subcontractor's bid to pressure other subs to lower their prices after award
Bid shopping is the unethical practice of using a subcontractor's price as leverage to obtain lower quotes from competitors, undermining competitive integrity.
Which internal control helps ensure that a contractor does not award subcontracts to related parties without disclosure?
Answer: Competitive bidding requirement with mandatory conflict-of-interest disclosure
Requiring competitive bids and mandating disclosure of any relationships between the contractor and prospective subcontractors prevents undisclosed related-party transactions.
A Disadvantaged Business Enterprise (DBE) or Minority Business Enterprise (MBE) participation requirement on a federally funded construction project is enforced through:
Answer: Documentation of solicitation efforts, subcontract awards, and payments to certified firms
DBE/MBE compliance requires documented evidence of good-faith solicitation efforts, awarded subcontracts, and verified payments to certified firms during and after the project.
When auditing a construction project, an auditor finds that a subcontract was executed after work was already performed. This condition indicates:
Answer: Failure of procurement controls allowing unauthorized commitments
Executing subcontracts after work begins means commitments were made without proper authorization, creating legal exposure and a breakdown in procurement controls.
Which procurement document allows an owner to evaluate both technical approach and price when scope cannot be fully defined in advance?
Answer: Request for Proposal (RFP)
An RFP solicits both technical solutions and pricing, allowing evaluation on best value rather than price alone when scope is partially or flexibly defined.