CCT Contract Management & Procurement Flashcards

What is a 'liquidated damages' clause in a construction contract?

Answer: A pre-agreed daily dollar amount charged for late project delivery

Liquidated damages are a contractually established daily rate the contractor pays to the owner for each day the project is delivered late.

Which procurement strategy involves awarding a contract to the vendor offering the lowest compliant bid?

Answer: Low-Bid Award

A Low-Bid Award selects the contractor whose bid is the lowest among all responsive and responsible proposals meeting minimum requirements.

What is the main advantage of using a Unit Price contract for construction work?

Answer: It allows payment based on actual quantities of work performed

Unit Price contracts pay the contractor for each measured unit of work completed, making them ideal when quantities cannot be precisely estimated upfront.

In procurement, what does 'sole source justification' mean?

Answer: Documenting why only one vendor can satisfy the requirement

Sole source justification is written documentation explaining why competition is not feasible and only one specific vendor can meet the project's unique needs.

A contractor submits a claim for extra work not covered in the original contract. What should a cost technician verify first?

Answer: Whether an approved change order exists authorizing the extra work

Before processing a claim for extra work, the cost technician must confirm a valid change order was issued authorizing the scope and cost addition.

What is the function of a bid bond in competitive procurement?

Answer: It ensures the low bidder will enter into the contract at the bid price

A bid bond is a surety guarantee that the winning bidder will execute the contract at the submitted price, protecting the owner from bid withdrawal.