CCT CCT Procurement & Contract Management 1

Question 1

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

Accepted Answer

Firm Fixed Price

Answer

A Firm Fixed Price contract places maximum financial risk on the contractor since payment does not change regardless of actual costs.

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

An RFP solicits detailed proposals from potential vendors, covering technical approach, qualifications, and pricing for complex procurements.

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 bid bond is a surety instrument guaranteeing that a bidder will enter into the contract at the bid price if selected.

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

An Invitation for Bid (IFB) is used when specifications are clear and the award goes to the lowest responsive, responsible bidder.

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

Contract claims management involves evaluating and resolving contractor requests for additional money or schedule time due to changed conditions or disputes.

(CCT) Certified Cost Technician Practice Test

(CCT) Certified Cost Technician Practice Test

CCT CCT Procurement & Contract Management 1