CCT CCT Contract Management & Procurement

Question 1

Which contract type places the most financial risk on the contractor?

Accepted Answer

Firm Fixed-Price (FFP)

Answer

Cost-Plus-Fixed-Fee (CPFF)

Answer

Time and Materials (T&M)

Answer

Cost-Plus-Incentive-Fee (CPIF)

Question 2

What is the primary purpose of a Request for Proposal (RFP) in procurement?

Accepted Answer

To invite vendors to propose solutions and pricing for a defined scope

Answer

To solicit competitive bids based solely on price

Answer

To notify suppliers of an awarded contract

Answer

To establish payment milestones for an existing contract

Question 3

In cost technician practice, what does 'scope creep' typically lead to?

Accepted Answer

Uncontrolled cost increases beyond the original budget

Answer

Reduced project duration

Answer

Improved contract terms

Answer

Lower material procurement costs

Question 4

Which document formally authorizes a change to a contract's scope, cost, or schedule?

Accepted Answer

Change Order (CO)

Answer

Notice to Proceed (NTP)

Answer

Bid Bond

Answer

Lien Waiver

Question 5

What is the purpose of a performance bond in construction contracting?

Accepted Answer

To ensure the contractor completes the project per contract terms

Answer

To guarantee the contractor will pay subcontractors

Answer

To cover cost overruns on time-and-material contracts

Answer

To reimburse the owner for design errors

Question 6

Under a Cost-Plus-Percentage-of-Cost (CPPC) contract, what problematic incentive exists for the contractor?

Accepted Answer

To increase costs since fee grows with spending

Answer

To minimize overhead charges

Answer

To finish work ahead of schedule

Answer

To reduce subcontractor markups