CFM CFM - Certified Facility Manager Procurement and Contract Management

Question 1

Which procurement method is BEST suited when price is the primary selection criterion and the scope of work is well-defined?

Accepted Answer

Invitation for Bid (IFB)

Answer

Request for Proposal (RFP)

Answer

Sole-source procurement

Answer

Request for Information (RFI)

Question 2

In a facility management contract, an indemnification clause primarily serves to:

Accepted Answer

Protect one party from financial losses caused by the other party's negligence

Answer

Set payment terms for services rendered

Answer

Define the scope of work to be performed

Answer

Establish liquidated damages for delays

Question 3

A facility manager uses a Total Cost of Ownership (TCO) analysis during procurement to:

Accepted Answer

Evaluate all costs over the asset's lifecycle, not just purchase price

Answer

Determine the lowest bid among competing vendors

Answer

Calculate depreciation for accounting purposes

Answer

Assess a vendor's financial stability

Question 4

Which contract type places the MOST financial risk on the facility management service provider?

Accepted Answer

Lump-sum (fixed-price) contract

Answer

Cost-plus-fixed-fee contract

Answer

Time-and-materials contract

Answer

Cost-plus-percentage contract

Question 5

A 'hold harmless' agreement in a facilities service contract is most closely related to which concept?

Accepted Answer

Indemnification

Answer

Liquidated damages

Answer

Force majeure

Answer

Warranty

Question 6

During the vendor pre-qualification process, a facility manager reviews a supplier's certificate of insurance primarily to verify:

Accepted Answer

That the vendor carries adequate liability coverage before work begins

Answer

The vendor's bonding capacity for project completion

Answer

The vendor's financial statements and credit history

Answer

Compliance with environmental regulations

Question 7

Which procurement strategy involves awarding a single contract to one vendor for multiple categories of facility services?

Accepted Answer

Bundled services contract

Answer

Invitation for Bid

Answer

Multiple award task order contract

Answer

Spot purchasing