CCC Contract Management & Procurement Flashcards
6 cards from real CCC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCC Contract Management & Procurement flashcards as text
What is the purpose of a Procurement Management Plan in cost control?
Answer: To define how contracts will be acquired, administered, and closed out throughout the project
The Procurement Management Plan governs the entire buy cycle — from make-or-buy decisions through contract closeout — ensuring cost controls are applied consistently.
Liquidated damages (LD) clauses in contracts are designed to:
Answer: Pre-establish a reasonable measure of damages for schedule delays without requiring proof of actual loss
LDs provide a pre-agreed daily or weekly rate for delay damages, simplifying enforcement without costly litigation over actual losses.
During contract closeout, a cost controller's primary financial task is to:
Answer: Reconcile all costs, release retainage, process final change orders, and close open purchase orders
Contract closeout requires full financial reconciliation — final invoicing, retainage release, PO closure, and confirmation that all costs are accounted for.
A 'back-charge' in contract management refers to:
Answer: Costs incurred by one party due to another party's failure, billed back to the responsible party
Back-charges recover costs (e.g., cleanup, rework) that one party had to perform because another party failed to fulfill a contractual obligation.
Which of the following best describes a 'not-to-exceed (NTE)' contract provision?
Answer: The contractor may bill actual costs up to a stated ceiling, beyond which all additional costs are borne by the contractor
An NTE cap protects the owner by establishing a ceiling cost while allowing flexibility for actual cost billing up to that limit.
When a cost controller performs a 'contract funds status report (CFSR),' what is the key output?
Answer: A forecast of how contract funds will be expended over time, including estimated cost at completion vs. funded amount
The CFSR projects the rate of expenditure and compares estimated cost at completion against available funding to identify potential shortfalls.