CCNP Contract Drafting & Performance Management 4

Question 1

Which contract management practice involves tracking milestones, deliverables, and deadlines to ensure timely performance?

Accepted Answer

Contract administration calendar

Answer

A contract administration calendar documents key dates—milestones, renewal windows, reporting deadlines—to ensure obligations are tracked and met throughout the contract term.

Question 2

Under U.S. contract law, what is the effect of a 'time is of the essence' clause?

Accepted Answer

It makes deadlines material terms whose breach may justify termination

Answer

When a contract states 'time is of the essence,' missing a deadline constitutes a material breach entitling the non-breaching party to terminate and seek damages.

Question 3

A contractor submits a request for equitable adjustment (REA) after a government-directed change increases project costs. What is the REA's primary purpose?

Accepted Answer

To recover additional costs and, in some cases, profit caused by the government-directed change

Answer

An REA allows a contractor to seek compensation for increased costs and schedule impacts resulting from government-directed changes, differing site conditions, or other government actions.

Question 4

What is the key difference between a 'warranty' and a 'representation' in a contract?

Accepted Answer

A representation is a statement of current fact; a warranty is a promise that a fact is and will remain true

Answer

A representation is an assertion of a present fact that induces a party to contract; a warranty is a contractual promise that facts are true and will continue to be true, with remedies for breach.

Question 5

In performance bond provisions, what obligation does the surety assume if the principal (contractor) defaults?

Accepted Answer

The surety completes the project or pays the cost of completion up to the bond amount

Answer

A performance bond obligates the surety to ensure project completion by either financing completion, arranging for a replacement contractor, or paying the owner's completion costs.

(CCNP) Certified Contract Negotiation Professional Practice Test

(CCNP) Certified Contract Negotiation Professional Practice Test

CCNP Contract Drafting & Performance Management 4