CMM Contract & Vendor Management Flashcards

What is the primary goal of vendor performance reviews conducted by a maintenance manager?

Answer: To measure actual service delivery against contract standards and drive continuous improvement

Regular performance reviews hold vendors accountable, identify gaps, and create a structured opportunity to improve service quality before problems escalate.

A maintenance manager wants to reduce vendor dependency for routine HVAC filter replacements. What is the BEST approach?

Answer: Train in-house technicians to perform the task and source filters directly from suppliers

Building in-house capability for routine, low-complexity tasks reduces costs, increases control, and decreases reliance on outside contractors for predictable maintenance.

When a contractor performs work that goes beyond the agreed scope, the maintenance manager should document the additional work through a:

Answer: Change order approved by authorized parties before the additional work begins

A formally approved change order establishes scope, cost, and schedule adjustments before work proceeds, preventing disputes and unauthorized cost overruns.

Which type of contract is BEST suited for maintenance projects where the full scope of work cannot be determined in advance?

Answer: Time-and-materials contract with a not-to-exceed (NTE) cap

A time-and-materials contract with an NTE cap provides flexibility for uncertain scopes while capping the owner's financial exposure at a predetermined maximum.

What should a maintenance manager verify about a vendor's subcontractors before allowing them to work on-site?

Answer: That subcontractors meet the same insurance, licensing, and safety requirements as the primary contractor

Subcontractors present the same liability and safety risks as primary contractors, so they must meet equivalent compliance standards to protect the facility.

A 'termination for convenience' clause in a maintenance contract allows the facility owner to:

Answer: End the contract at any time without cause, typically with advance notice and payment for work completed

Termination for convenience gives the owner flexibility to exit the contract for any reason—such as a change in strategy—while compensating the vendor fairly for completed work.