PCC Contract Management & Procurement Flashcards

When closing out a contract in project controls, which activity is performed LAST?

Answer: Lessons learned documentation

Lessons learned are documented after all financial and administrative closeout activities are complete to capture knowledge for future projects.

A performance bond in a construction contract protects the project owner by:

Answer: Ensuring the contractor completes the work if it defaults

A performance bond is issued by a surety and guarantees project completion by providing funds or a replacement contractor if the original contractor defaults.

Which contract risk mitigation strategy involves the owner retaining a percentage of each payment until the project is substantially complete?

Answer: Retainage

Retainage (typically 5–10%) is withheld from progress payments to incentivize the contractor to complete all punch-list items before final payment.

In US federal procurement, the Federal Acquisition Regulation (FAR) primarily governs:

Answer: Acquisition of supplies and services by executive branch agencies

The FAR is the principal set of rules codified in Title 48 of the CFR that governs federal executive branch agencies' acquisition of goods and services.

A project controller identifies that a subcontractor's actual costs have exceeded the contract value by 15%. The FIRST action should be to:

Answer: Review the contract terms and determine if a formal change order is warranted

The first step is to review contract terms to determine if the overrun is due to authorized scope changes requiring a change order or an unallowable overrun by the contractor.

Which procurement strategy allows multiple vendors to compete for task orders under a single long-term contract vehicle?

Answer: Indefinite delivery/indefinite quantity (IDIQ)

An IDIQ contract establishes terms and conditions for an indefinite quantity of supplies or services and allows task orders to be issued competitively among pre-qualified vendors.