CCM Vendor & Contractor Management 2

Question 1

Which clause in a vendor contract allows the association to end the agreement if the vendor fails to meet performance standards?

Accepted Answer

Termination for cause clause

Answer

Force majeure clause

Answer

Indemnification clause

Answer

Arbitration clause

Question 2

A contractor completes roof repairs and submits a final invoice. Before authorizing payment, what should the community manager verify?

Accepted Answer

That all punch list items are resolved and a lien waiver is obtained

Answer

That the board treasurer has signed the invoice

Answer

That the vendor has been with the association for at least one year

Answer

That the work was completed during regular business hours

Question 3

What does 'additional insured' status on a vendor's insurance policy mean for a community association?

Accepted Answer

The association is covered under the vendor's policy for claims arising from the vendor's work

Answer

The association pays a portion of the vendor's insurance premium

Answer

The vendor is covered under the association's policy

Answer

The vendor waives their right to sue the association

Question 4

When evaluating competing vendor bids, which factor should a community manager prioritize alongside price?

Accepted Answer

Quality of past work, references, licensing, and insurance adequacy

Answer

The vendor's proximity to the community only

Answer

Whether the vendor has worked with the board members personally

Answer

The lowest price regardless of other factors

Question 5

A vendor discovers unexpected structural damage mid-project that requires additional work beyond the original contract. What process should govern the additional costs?

Accepted Answer

A written change order approved by authorized parties before additional work begins

Answer

A verbal agreement between the vendor and community manager

Answer

The vendor completes the extra work and invoices at their discretion

Answer

The board votes retrospectively after the work is done

Question 6

Why should community associations require vendors to carry workers' compensation insurance?

Accepted Answer

To protect the association from liability if a vendor's employee is injured while working on community property

Answer

To reduce the association's annual operating budget

Answer

To ensure the vendor pays their employees fairly

Answer

To comply with federal marketing regulations

Question 7

What is the purpose of a vendor pre-qualification process before issuing an RFP?

Accepted Answer

To screen vendors for licensing, insurance, financial stability, and experience before they are invited to bid

Answer

To negotiate pricing with all interested vendors simultaneously

Answer

To allow the board to select a vendor based on personal preference

Answer

To create a list of vendors who have previously worked for the association only