CMCA - Certified Manager of Community Associations Contracting and Vendor Management Questions and Answers

Question 1

An association's three-year waste management contract contains a clause that it will automatically renew for another three-year term unless 90 days' written notice of termination is provided.
The manager realizes the 90-day deadline is only one week away.
What is the manager's MOST appropriate immediate action?

Accepted Answer

Immediately send a written notice of termination to preserve the association's options.

Answer

Assume the board wants to renew since there have been no service complaints and allow the deadline to pass.

Answer

Wait for the next board meeting in two weeks to ask the board for direction.

Answer

Call the vendor and verbally tell them the association will decide whether to renew at a later date.

Question 2

What is the primary purpose of an indemnification clause, also known as a 'hold harmless' provision, in a service contract between a community association and a vendor?

Accepted Answer

To transfer the financial risk for certain potential losses from the association to the vendor.

Answer

To define the specific start and end dates of the contract's term.

Answer

To guarantee that the vendor will be paid by the association within a specified timeframe.

Answer

To ensure the vendor maintains a specific amount of liability insurance.

Question 3

A board has executed a contract with a company for a major common area painting project. Which of the following is the MOST critical document the manager must obtain from the contractor before any work is allowed to commence?

Accepted Answer

A certificate of insurance (COI) naming the association as an additional insured.

Answer

A final lien waiver for the entire project.

Answer

A list of all employees and subcontractors who will be on the property.

Answer

An itemized invoice for the initial deposit payment.

Question 4

An association's multi-year landscaping contract expires in four months, and the board is generally happy with the service. What is the most prudent course of action for the manager to recommend?

Accepted Answer

Recommend initiating a competitive bidding process by issuing a Request for Proposal (RFP).

Answer

Advise the board to extend the contract on a month-to-month basis indefinitely.

Answer

Suggest automatically renewing the contract with the current vendor to ensure service continuity.

Answer

Propose seeking a new vendor immediately to try and secure a lower price.

Question 5

A general contractor performs a major concrete repair for an association but fails to pay the subcontractor who supplied the materials. What action can the unpaid subcontractor legally take that directly encumbers the association's property?

Accepted Answer

Place a mechanic's lien on the association's common property.

Answer

Sue the individual board members for breach of contract.

Answer

Demand immediate payment from the management company.

Answer

File a formal complaint against the general contractor with the state licensing board.

Question 6

When a board is evaluating multiple proposals received from an RFP for a long-term service contract, such as security or janitorial, which of the following should be the primary basis for their decision?

Accepted Answer

The proposal that offers the best overall value to the association.

Answer

The manager's personal recommendation based on prior relationships.

Answer

The proposal with the earliest possible start date.

Answer

The proposal with the lowest bid price.