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

What is the typical reason an association collects a Form W-9 from a vendor?

Answer: To obtain taxpayer identification for year-end Form 1099 reporting

The W-9 provides the TIN needed to issue Form 1099-NEC to qualifying vendors.

A vendor's work is found defective six months after completion, but the contract included a one-year warranty. What should the manager do first?

Answer: Give the vendor written notice and an opportunity to correct under the warranty

Following the warranty notice procedure preserves the association's rights to repair or replacement.

Which is the best way to verify a contractor holds the required state license?

Answer: Check the issuing state licensing board's records

Independent verification with the licensing authority confirms current licensure.

In an emergency such as a burst main, the manager may need to hire a vendor quickly. What best preserves accountability?

Answer: Follow emergency authority in the governing documents, then document and report to the board

Emergency actions should stay within delegated authority and be documented and reported promptly.

What does a scope of work in a service contract define?

Answer: The specific tasks, frequency, and standards of services to be performed

A clear scope sets expectations and the basis for measuring performance.

Which practice best supports ongoing vendor performance management?

Answer: Reviewing performance against contract standards on a regular schedule

Periodic evaluation against defined standards identifies problems before renewal.

A contractor asks for a large upfront payment before starting work. What is the most prudent response?

Answer: Negotiate a payment schedule tied to milestones, with limited deposit

Milestone-based payments limit the association's exposure if the contractor fails to perform.