CMM CMM Contract & Vendor Management

Question 1

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

Accepted Answer

Request for Proposal (RFP)

Answer

Purchase order

Answer

Change order

Answer

Certificate of insurance

Question 2

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

Accepted Answer

Time-and-materials contract

Answer

Fixed-price (lump-sum) contract

Answer

Unit-price contract

Answer

Performance-based contract

Question 3

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

Accepted Answer

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

Answer

To verify the vendor's employee count

Answer

To establish the vendor's credit rating

Answer

To comply with IRS reporting requirements

Question 4

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

Accepted Answer

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

Answer

A billing schedule for parts and labor

Answer

A list of excluded services

Answer

An insurance endorsement

Question 5

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

Accepted Answer

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

Answer

Accept the substitution immediately to reduce cost

Answer

Reject the proposal without review

Answer

Escalate to legal counsel without reviewing specifications

Question 6

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

Accepted Answer

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

Answer

To list the vendor's past clients

Answer

To establish the vendor's corporate structure

Answer

To document payment terms only