CCT Procurement & Contract Management Flashcards

What is the purpose of a 'performance bond' in a construction contract?

Answer: To ensure the contractor completes the project according to contract terms

A performance bond is a surety instrument that protects the owner by guaranteeing the contractor will fulfill all contract obligations.

In contract management, what is a 'constructive change'?

Answer: An owner action that effectively changes the contract scope without a formal change order

A constructive change occurs when owner actions or inactions alter the contractor's work without a formal written change order, entitling the contractor to additional compensation.

Which method is typically used to select architects and engineers for public projects in the US?

Answer: Qualifications-Based Selection (QBS) under the Brooks Act

The Brooks Act mandates Qualifications-Based Selection for federal A/E contracts, ranking firms on competence before negotiating a fair fee.

What does 'front-loading' in a contractor's schedule of values indicate?

Answer: Overstating early work values to improve early cash flow at the owner's expense

Front-loading means inflating the value of early pay items so the contractor receives more money early, creating an overpayment risk for the owner.

What is the role of a cost technician during the procurement phase?

Answer: To prepare cost estimates and analyze bids to support award decisions

During procurement, cost technicians prepare independent cost estimates and analyze bid submissions to evaluate reasonableness and support award recommendations.

Which clause in a construction contract allows the owner to adjust the contract price for significant changes in material quantities?

Answer: Unit price adjustment clause

A unit price adjustment clause allows the contract price to be recalculated when actual quantities deviate significantly from estimated quantities in the bid.