CMCA CMCA - Certified Manager of Community Associations Contracting and Vendor Management Questions and Answers 2

Question 1

Which contract clause protects an association if a vendor fails to complete work by the agreed deadline?

Accepted Answer

Liquidated damages clause

Answer

Indemnification clause

Answer

Force majeure clause

Answer

Arbitration clause

Question 2

Before signing a contract with a new vendor, a community manager should at minimum verify:

Accepted Answer

Proof of adequate insurance and valid state licensing

Answer

The vendor's personal credit score

Answer

The vendor's social media follower count

Answer

Whether the vendor has worked for a competing association

Question 3

A scope of work in a service contract primarily defines:

Accepted Answer

The specific tasks, standards, and deliverables the vendor is expected to provide

Answer

The vendor's payment terms

Answer

The association's right to terminate the contract

Answer

The dispute resolution process

Question 4

When soliciting bids for a major capital project, an association should send the same specifications to all bidders in order to:

Accepted Answer

Ensure an apples-to-apples comparison and fair competition

Answer

Reduce the number of bids received

Answer

Satisfy the vendor's marketing requirements

Answer

Comply with federal procurement laws

Question 5

An evergreen or auto-renewing contract clause means:

Accepted Answer

The contract automatically renews for another term unless one party provides timely notice of cancellation

Answer

The contract covers only landscaping and green space

Answer

The contract price adjusts annually with inflation

Answer

The vendor guarantees eco-friendly practices

Question 6

Which of the following is the most appropriate reason to terminate a vendor contract for cause?

Accepted Answer

The vendor consistently failed to meet the performance standards specified in the scope of work

Answer

The vendor submitted invoices on time

Answer

The association found a cheaper vendor

Answer

The vendor asked for a contract price increase