CFM - Certified Facility Manager Procurement and Contract Management Flashcards
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Read the first 7 CFM - Certified Facility Manager Procurement and Contract Management flashcards as text
A Key Performance Indicator (KPI) in a facility service contract is BEST described as:
Answer: A measurable metric used to evaluate vendor performance against contractual obligations
KPIs are quantifiable measures—such as response time or uptime percentage—that verify whether the vendor is meeting agreed service levels.
A Service Level Agreement (SLA) in facility management contracts primarily defines:
Answer: Expected performance standards and response times for contracted services
An SLA establishes measurable service standards—such as HVAC response times—and the consequences if those standards are not met.
When a facility manager issues a Request for Proposal (RFP), the primary advantage over an Invitation for Bid is:
Answer: It allows evaluation of qualifications, approach, and price rather than price alone
An RFP permits the facility manager to weigh technical merit, experience, and proposed approach alongside price, enabling best-value selection.
In contract administration, 'change order management' is critical because:
Answer: Changes to scope can affect cost and schedule and must be formally authorized
Formal change orders document scope modifications, ensuring cost and schedule impacts are agreed upon before work proceeds, preventing disputes.
A performance bond in a facilities construction or service contract guarantees that:
Answer: The contractor will complete the project according to contract terms
A performance bond is issued by a surety and protects the owner if the contractor fails to perform, covering the cost to complete the work.
Which approach BEST describes competitive sealed bidding in public-sector facility procurement?
Answer: Bids are publicly opened, and award goes to the lowest responsive, responsible bidder
Competitive sealed bidding requires public bid opening and mandates award to the lowest qualifying bidder to ensure transparency and fairness.
A facility manager is reviewing a contract's 'force majeure' clause. This clause is designed to:
Answer: Excuse non-performance when extraordinary events beyond either party's control occur
Force majeure protects both parties from liability for non-performance caused by unforeseeable events such as natural disasters, pandemics, or war.