CMM Contract & Vendor Management Flashcards

What document is typically issued first in a competitive procurement process for a major maintenance service?

Answer: Request for Proposal (RFP)

An RFP outlines the scope, requirements, and evaluation criteria so qualified vendors can submit detailed proposals for a maintenance contract.

Which contract type places the MOST financial risk on the building owner?

Answer: Time-and-materials contract

A time-and-materials contract charges the owner for actual labor hours and materials used, so cost can escalate if the work takes longer or uses more materials than anticipated.

Why should a maintenance manager require vendors to provide a Certificate of Insurance (COI) before starting work?

Answer: To confirm the vendor carries adequate liability and workers' compensation coverage, protecting the facility from claims

A COI confirms that the vendor's insurance is active and sufficient, reducing the facility owner's exposure if a vendor employee is injured or causes property damage on-site.

What is a service-level agreement (SLA) in the context of a maintenance contract?

Answer: A defined set of performance standards and response-time expectations the vendor must meet

An SLA establishes measurable benchmarks—such as response times, uptime percentages, and completion rates—that hold the vendor accountable for service quality.

During contract negotiations, a vendor proposes using cheaper substitute materials than specified. What should the maintenance manager do FIRST?

Answer: Evaluate whether the substitute meets the same performance and warranty standards as the specified material

Evaluating the substitute against performance and warranty requirements ensures cost savings do not compromise quality, compliance, or equipment longevity.

What is the purpose of a scope of work (SOW) in a maintenance service contract?

Answer: To precisely define the tasks, deliverables, standards, and boundaries of the services to be performed

A well-defined SOW prevents disputes by leaving no ambiguity about what is and is not included in the contracted services.