PCC PCC Contract Management & Procurement

Question 1

Which contract type places the most financial risk on the buyer?

Accepted Answer

Cost-plus-fixed-fee

Answer

Firm-fixed-price

Answer

Time-and-materials

Answer

Cost-plus-incentive-fee

Question 2

In project controls, a procurement baseline is used primarily to:

Accepted Answer

Track vendor performance against contracted deliverables and costs

Answer

Negotiate lower prices with suppliers

Answer

Identify preferred vendors for sole-source awards

Answer

Establish payment terms for all contracts

Question 3

What document formally authorizes a seller to begin work on a contract?

Accepted Answer

Notice to Proceed (NTP)

Answer

Request for Proposal (RFP)

Answer

Statement of Work (SOW)

Answer

Purchase Order (PO)

Question 4

Which procurement document provides the most detailed technical and administrative requirements for a project?

Accepted Answer

Statement of Work (SOW)

Answer

Request for Information (RFI)

Answer

Request for Quotation (RFQ)

Answer

Invitation for Bid (IFB)

Question 5

A project controller reviewing contract terms notices the contract includes a liquidated damages clause. This clause is intended to:

Accepted Answer

Compensate the owner for losses if the contractor misses key milestones

Answer

Penalize the contractor for poor quality work

Answer

Allow the owner to terminate the contract without cause

Answer

Require the contractor to post a performance bond

Question 6

In contract administration, a change order is best described as:

Accepted Answer

A formal amendment modifying the contract scope, schedule, or cost

Answer

A unilateral decision by the project owner to change the scope

Answer

A contractor's request to substitute materials

Answer

A document tracking subcontractor performance