CPWM Contract Management & Procurement 2

Question 1

What is a change order in a public works contract?

Accepted Answer

A formal written agreement modifying the scope, price, or schedule of an existing contract

Answer

A change order is a formal written amendment to an existing contract that modifies the scope of work, contract price, completion schedule, or other contract terms.

Question 2

What are 'liquidated damages' in a public works contract?

Accepted Answer

A pre-agreed daily penalty the contractor pays for failing to complete work on time

Answer

Liquidated damages are a predetermined daily monetary amount the contractor owes the agency for each day the project extends beyond the contract completion date.

Question 3

What cooperative purchasing approach allows public agencies to use contracts competitively bid by another agency?

Accepted Answer

Piggybacking (intergovernmental purchasing)

Answer

Piggybacking allows public agencies to purchase goods or services through another agency's competitively awarded contract, saving time and administrative costs while maintaining procurement integrity.

Question 4

What does 'scope creep' mean in the context of public works contract management?

Accepted Answer

Unauthorized or uncontrolled expansion of project scope beyond original contract terms

Answer

Scope creep refers to the gradual, often informal expansion of a project's scope beyond what was originally agreed upon, which can lead to cost overruns and schedule delays if not controlled through formal change orders.

Question 5

What is the key difference between a Request for Proposal (RFP) and an Invitation for Bid (IFB)?

Accepted Answer

An RFP allows evaluation of technical approach and qualifications; an IFB awards solely on price

Answer

An RFP allows agencies to evaluate multiple factors including technical approach, qualifications, and price, while an IFB awards the contract to the lowest responsive and responsible bidder based solely on price.

(CPWM) Certified Public Works Manager Practice Test

(CPWM) Certified Public Works Manager Practice Test

CPWM Contract Management & Procurement 2