CPCM Certified Professional Contract Manager: Negotiation and Conflict Resolution in Contracts 5 — Questions and Answers
Question 1: A contract manager receives a unilateral change order increasing scope. The contractor must perform but should immediately:
- Submit a written protest and REA within contractually specified timeframes (Correct answer)
- Stop work until a bilateral modification is signed
- Accept the change without documentation to preserve the relationship
- Escalate directly to the contracting officer's supervisor
Correct answer: Submit a written protest and REA within contractually specified timeframes
Performing under protest while filing a timely REA preserves the contractor's right to additional compensation without breaching the contract.
Question 2: What is 'constructive acceleration' in contract disputes?
- When an owner denies a valid time extension and the contractor must finish on the original schedule at increased cost (Correct answer)
- When a contractor voluntarily speeds up work to earn a bonus
- When a subcontractor accelerates to cover for the prime contractor's delays
- When the government exercises an option period ahead of schedule
Correct answer: When an owner denies a valid time extension and the contractor must finish on the original schedule at increased cost
Constructive acceleration occurs when an excusable delay is not formally recognized, forcing the contractor to accelerate at its own expense.
Question 3: Which ADR method gives the neutral third party authority to impose a binding decision if the parties cannot settle during the facilitated phase?
- Med-arb (Correct answer)
- Mini-trial
- Early neutral evaluation
- Conciliation
Correct answer: Med-arb
In med-arb, the neutral first mediates and, if mediation fails, switches roles to arbitrate and render a binding decision.
Question 4: Under FAR 52.233-1, a contractor's claim against the government must be submitted in writing within how many years of when the claim accrued?
- 6 years (Correct answer)
- 3 years
- 1 year
- 10 years
Correct answer: 6 years
The Contract Disputes Act imposes a 6-year statute of limitations on claims by both contractors and the government.
Question 5: When a negotiation reaches an impasse, the MOST effective technique to restart progress is to:
- Introduce a new issue or package previously discussed issues differently (Correct answer)
- Increase the ultimatum pressure to force a concession
- Adjourn indefinitely and wait for the other party to contact you
- Reduce your BATNA to signal flexibility
Correct answer: Introduce a new issue or package previously discussed issues differently
Reframing or adding new variables changes the negotiation dynamic and can unlock solutions that were not visible before.
Question 6: A 'no-damage-for-delay' clause is MOST likely to be unenforceable when the delay was caused by:
- Owner-caused delays that constitute active interference or fraud (Correct answer)
- Weather conditions beyond normal expectations
- Supply chain disruptions affecting the entire industry
- A subcontractor's failure to perform on schedule
Correct answer: Owner-caused delays that constitute active interference or fraud
Most courts refuse to enforce no-damage-for-delay clauses when the owner actively interfered with performance or acted in bad faith.
Question 7: Which negotiation preparation step involves identifying trades you are willing to make at minimal cost to yourself but of high value to the other party?
- Mapping the other party's interests and priorities (Correct answer)
- Setting your reservation price
- Drafting your opening position statement
- Establishing a negotiation timeline
Correct answer: Mapping the other party's interests and priorities
Understanding the other party's priorities reveals low-cost concessions that create disproportionate value in the negotiation.
CPCM Certified Professional Contract Manager: Negotiation and Conflict Resolution in Contracts 5
A contract manager receives a unilateral change order increasing scope.
The contractor must perform but should immediately: