Contracting & Negotiation Techniques Flashcards
7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracting & Negotiation Techniques flashcards as text
A buyer orders a change within the general scope of the contract under a changes clause. What is the supplier normally entitled to?
Answer: An equitable adjustment in price and/or schedule
Changes clauses let the buyer modify the scope unilaterally, while the supplier is entitled to an equitable adjustment for the cost or schedule impact.
A buyer ends a contract because it no longer needs the goods, not because the supplier failed. This is called termination for:
Answer: Convenience
Termination for convenience lets the buyer end the contract without supplier fault, normally paying for work performed plus reasonable settlement costs.
Before terminating a contract for default, a buyer typically issues a notice giving the supplier a set period to correct the problem. This notice is a:
Answer: Cure notice
A cure notice tells the supplier about the deficiency and gives a set time (often 10 days) to remedy it before default termination.
An engineer who lacks contracting authority tells a supplier to add features not in the contract, and the supplier complies. This situation is best described as:
Answer: A constructive change
A constructive change occurs when informal direction or conduct effectively changes the contract without a formal modification.
Which dispute resolution method uses a neutral third party who helps the parties reach agreement but cannot impose a binding decision?
Answer: Mediation
A mediator helps the parties negotiate a settlement but, unlike an arbitrator or judge, cannot impose a decision.
Transferring a contract to a new party so that the new party fully replaces the original and releases it from obligations requires:
Answer: A novation agreement with consent of all parties
A novation substitutes a new party for an original one and requires consent from all parties, which releases the original party.
What is the primary purpose of a contract closeout process?
Answer: To verify all obligations are fulfilled, settle final payments and claims, and archive records
Closeout confirms delivery and acceptance, resolves outstanding payments and claims, and documents lessons learned and records.