CMCA CMCA - Certified Manager of Community Associations Contracting and Vendor Management Questions and Answers 3

Question 1

An indemnification clause in a vendor contract requires the vendor to:

Accepted Answer

Defend and hold the association harmless from claims arising out of the vendor's work

Answer

An indemnification clause obligates the vendor to defend the association and cover any losses or claims that result from the vendor's negligent or wrongful acts during the performance of the contract.

Question 2

A performance bond in a construction contract protects the association by:

Accepted Answer

Ensuring the project is completed if the contractor defaults

Answer

A performance bond is a surety instrument that guarantees project completion. If the contractor defaults, the surety company steps in to either complete the project or compensate the association for completion costs.

Question 3

A manager reviewing a landscaping contract notices it lacks a termination-for-convenience clause. This means:

Accepted Answer

The association may be unable to end the contract early without cause, potentially paying for services it no longer wants

Answer

Without a termination-for-convenience clause, the association is generally bound for the full contract term and can only exit early if the vendor materially breaches the agreement.

Question 4

When a vendor completes work and submits an invoice, the manager should verify:

Accepted Answer

That the invoice matches the contract price and the scope of work was completed as specified

Answer

Invoice verification requires confirming that the billed amount matches the contract and approved change orders and that all specified work was actually completed before authorizing payment.

Question 5

Which document records changes to the original scope or price of a construction contract after it has been signed?

Accepted Answer

Change order

Answer

A change order is a written amendment to the original contract that documents any changes to scope, timeline, or price that both parties agree to after the contract is executed.

CMCA - Certified Manager of Community Associations Practice Test

CMCA - Certified Manager of Community Associations Practice Test

CMCA CMCA - Certified Manager of Community Associations Contracting and Vendor Management Questions and Answers 3