Subcontractor & Vendor Management Flashcards
7 cards from real CEC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Subcontractor & Vendor Management flashcards as text
A vendor quotes a material price with a 90-day validity period. The project schedule shows delivery needed in 120 days. The estimator should:
Answer: Request a price extension or add an escalation contingency
When delivery falls outside a quote's validity period, the estimator must either secure a price extension or include a material escalation contingency to protect the budget.
A 'pay-when-paid' clause in a subcontract means:
Answer: The GC's obligation to pay the sub is conditioned on first receiving payment from the owner
Pay-when-paid clauses make owner payment a condition precedent to the GC's obligation to pay subcontractors, shifting payment timing risk to the sub.
During bid analysis, the estimator discovers two subcontractor bids have identical pricing down to the dollar. This MOST likely indicates:
Answer: Possible bid shopping or collusion that should be investigated
Identical bids from competing subcontractors are a red flag for bid rigging or collusion, which violates competitive bidding ethics and potentially anti-trust laws.
What is the primary purpose of a subcontractor prequalification process?
Answer: To assess financial stability, experience, and safety record before inviting bids
Prequalification screens subcontractors on financial strength, relevant experience, safety history, and bonding capacity to reduce the risk of default or poor performance.
A subcontractor's Schedule of Values submitted with their first pay application shows front-loaded values. The estimator reviewing it should:
Answer: Require rebalancing to reflect actual cost distribution before approving
Front-loading inflates early payment amounts beyond actual work value, creating GC exposure if the sub defaults; rebalancing the schedule of values ensures payments match work in place.
When a subcontractor requests a change order for extra work that was not directed in writing, the GC estimator should:
Answer: Review the contract's notice requirements and evaluate the merit of the claim
While written direction is typically required, the estimator must assess contract notice provisions and evaluate whether the extra work has merit before approving or denying the claim.
Sole-sourcing a material or vendor means:
Answer: Selecting a single vendor without competitive bidding
Sole-sourcing involves awarding a purchase to one vendor without competitive bidding, often justified by proprietary products, specialty expertise, or urgent timelines.