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

A termination for cause clause gives the association the right to cancel a contract when the vendor materially breaches their obligations.

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

Verifying punch list completion and obtaining a lien waiver protects the association from mechanic's liens filed by unpaid subcontractors.

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

Being named as additional insured means the association has direct coverage under the vendor's policy for incidents caused by the vendor's activities.

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

A comprehensive evaluation weighing quality, references, licensing, and insurance ensures the association selects the best value, not just the cheapest bid.

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 signed change order documents scope changes and associated costs before work proceeds, maintaining budget control and contract integrity.

CCM - Certified Community Manager Practice Test

CCM - Certified Community Manager Practice Test

CCM Vendor & Contractor Management 2