CFM CFM - Certified Facility Manager Procurement and Contract Management 2

Question 1

A Key Performance Indicator (KPI) in a facility service contract is BEST described as:

Accepted Answer

A measurable metric used to evaluate vendor performance against contractual obligations

Answer

KPIs are quantifiable measures—such as response time or uptime percentage—that verify whether the vendor is meeting agreed service levels.

Question 2

A Service Level Agreement (SLA) in facility management contracts primarily defines:

Accepted Answer

Expected performance standards and response times for contracted services

Answer

An SLA establishes measurable service standards—such as HVAC response times—and the consequences if those standards are not met.

Question 3

When a facility manager issues a Request for Proposal (RFP), the primary advantage over an Invitation for Bid is:

Accepted Answer

It allows evaluation of qualifications, approach, and price rather than price alone

Answer

An RFP permits the facility manager to weigh technical merit, experience, and proposed approach alongside price, enabling best-value selection.

Question 4

In contract administration, 'change order management' is critical because:

Accepted Answer

Changes to scope can affect cost and schedule and must be formally authorized

Answer

Formal change orders document scope modifications, ensuring cost and schedule impacts are agreed upon before work proceeds, preventing disputes.

Question 5

A performance bond in a facilities construction or service contract guarantees that:

Accepted Answer

The contractor will complete the project according to contract terms

Answer

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.

CFM - Certified Facility Manager Practice Test