CCT CCT Procurement & Contract Management

Question 1

Which contract type transfers the most financial risk to the contractor?

Accepted Answer

Firm Fixed Price

Answer

Cost Plus Fixed Fee

Answer

Time and Materials

Answer

Cost Plus Incentive Fee

Question 2

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

Accepted Answer

To solicit detailed proposals from vendors including pricing and methodology

Answer

To announce a contract award

Answer

To request a simple price quote for standard goods

Answer

To notify contractors of a project cancellation

Question 3

In construction cost management, what does the term 'bid bond' refer to?

Accepted Answer

A surety bond ensuring the bidder will honor the bid and sign the contract if awarded

Answer

A bond guaranteeing project completion

Answer

A bond covering material defects

Answer

A bond protecting subcontractors against non-payment

Question 4

Which procurement method is most appropriate when price is the sole selection criterion and requirements are clearly defined?

Accepted Answer

Invitation for Bid (IFB)

Answer

Qualifications-Based Selection

Answer

Negotiated procurement

Answer

Best Value Selection

Question 5

What is 'contract claims management' primarily concerned with?

Accepted Answer

Processing requests for additional compensation or time beyond the original contract terms

Answer

Drafting the original contract language

Answer

Selecting qualified subcontractors

Answer

Tracking material deliveries

Question 6

A cost technician reviewing a subcontract notices the scope of work is ambiguous. What is the most appropriate action?

Accepted Answer

Request a contract modification to clarify scope before execution

Answer

Award the contract and resolve scope issues later

Answer

Select a different subcontractor

Answer

Proceed with a verbal understanding of the scope