Prep Test Flashcards
(263 cards)
1
Q
IACCM research shows that on average, what percentage of contracts under-perform?
A
30-35%
2
Q
Research shows that the number one factor that introduces risk to contracting is ?
A
Poor communication
3
Q
True/False: Contract administration is the set of tasks that we perform each day in order to maintain the course of our in flight contracts
and ensure that they are delivered efficiently and effectively meeting the standard project constraints of time, cost and
quality.
A
True
4
Q
True/False: An inadequate business case can result in cost overruns under a contract.
A
True
5
Q
Techniques for requirements gathering inputs include which of the following?: 1) Structured interviews, 2) Prototypes, 3) RFP responses, 4) Questionnaires
A
1, 2, 4
6
Q
What do the following indicate: a) Wasted time, b) High frustration levels, c) Proceeding with the wrong solution, & d) Ultimate
failure of the project?
A
Deficient requirements
7
Q
What does the term “internal economy” describe?
A
The forces within a company that drive decisions and behaviors
8
Q
Which of the following statements about requirements are true: 1) Requirements should focus solely on the functional and
technical aspects 2) There should be recognition that requirements change
A
Only 2 is true
9
Q
Consideration of which of the following factors may enhance benchmarking requirements?: 1) Technical standards, 2) Service level requirements for Service Level Agreements.
A
Both 1) and 2)
10
Q
Which is a characteristic of more thorough requirements?
A
Ability to anticipate cultural and technical issues
11
Q
Which of the following should be considered as part of the requirements gathering process: 1) Keeping as many options open
as possible, 2) Human impact, 3) Corporate governance, 4) Quality standards
A
2, 3, 4
12
Q
Why should requirements be prioritized?
A
To enable use of a closest fit solution if exact alignment is not possible
13
Q
In financial analysis, TCO stands for and means:
A
Total Cost of Ownership: The total cost of an asset over its useful life
14
Q
What models are designed to address contract risk scenarios and alignment with strategy?
A
Sophisticated financial models
15
Q
Typically when choosing among mutually exclusive projects of the same value, the project with the _____ Net Present Value
should be selected.
A
Largest
16
Q
What does a Return on Investment (ROI) calculation provide?
A
The degree to which an investment contributes financial return over a period of time
17
Q
Which cost benefit analysis methodology defines an interest rate percentage that yields a discounted cash flow of zero over the calculated period?
A
Internal rate of return
18
Q
If the NPV of a prospective project is negative, then the project probably should be:
A
Rejected because the net cash flows for the entire project are negative
19
Q
In financial analysis, TCO stands for and means:
A
Total Cost of Ownership: The total cost of an asset over its useful life
20
Q
What does an Internal Rate of Return (IRR) provide?
A
One means of assessing a project’s financial business case / investment decision
21
Q
What does break-even analysis provide
A
The point in time when revenue from an investment equals the investment amount
22
Q
Cost Benefit Analysis can explore the financial return in terms of the point in time when revenues from an investment equal the amount of the investment. What is this called?
A
Break-even analysis
23
Q
A joint venture outsourcing approach in which you have a stake enables which capability?
A
Pursuing business opportunities that you may not be able to pursue yourself
24
Q
A useful commodity could be defined as which of the following?
A
Something that doesn’t differentiate us from the competition
25
What is a consortium?
A group of suppliers providing a coordinated tender response identifying their intention to work together
26
What scope does a prime contractor have?
Entire scope
27
Where a customer chooses a sourcing approach whereby a supplier takes responsibility for delivering the entire service, but then may subcontract some of it is known as?
Prime contractor
28
What do passive clauses require?
They will be triggered by a specific action, inaction or omission
29
What is a warning sign that contract terms should be audited?
Specific exceptions are made frequently
30
What is best practice when considering when to perform a terms audit?
Whenever your monitoring mechanisms indicate a need to do so
31
What is important to understand when undertaking a terms audit?
The audit may cover SLAs, attachments and schedules
32
Which of the following statements about the consequences of inappropriate terms is/are true?: 1) You will not accurately
reflect your trading environment, 2) You will increase your competitiveness in the market place
Only 1 is true
33
True or False, opportunity costs excludes soft, less quantifiable costs.
FALSE
34
What can be the result of cost-cutting decisions during the procurement process?
Increase in risk and exposure to alternative costs
35
What is the best approach to eliminate assumptions supporting cost identification?
Research, analysis and proactive management
36
What should be identified when assessing cost benefit analyses?
Outcomes with and without allocated costs
37
Which of the following are key knowledge areas in relation to cost identification?: 1) Corporate cost savings targets, 2) Tax, 3) Costing & Pricing. 4) Price vs Cost of Relationship
2, 3, 4
38
What information should a bidder be required to include in their proposal?
Corporate financial statements
39
What should happen to a bidder that introduces "hidden costs" during negotiations?
Disqualification
40
When sending out an RFP, what request should you include in your cover letter?
Explanation of any variations from your requirements
41
Which of the following are possible outcomes of an RFI process?: 1) Contracts are signed, 2) Decision to "make" rather than "buy', 3) Send the project out under an RFP, 4) "Kill" the project
2, 3, 4
42
Why should an RFI define the suppliers' required response format & content?
To obtain a consistent response from all suppliers
43
In general, the more restricted the Contracts role and the more it is rules-driven, the later the Contracts group becomes involved.
True
44
What is important for suppliers to understand in relation to a Request for Information (RFI)?
It is used to obtain information to support decision making
45
When prospective business is identified what is the most important factor for the supplier to recognize?
Whether the opportunity is one they want to win
46
How can a contracts professional add value through creative solutions?
By expanding the value of the deal
47
What is important for suppliers to understand in relation to a Request for Information (RFI)?
It is used to obtain information to support decision making
48
When prospective business is identified what is the most important factor for the supplier to recognize?
Whether the opportunity is one they want to win
49
Which of the of the following attributes do successful bid teams demonstrate?: 1) Co-operation, 2) Communication, 3)
Hierarchy, 4) Prioritizing of tasks
1, 2, 4
50
Is the customer's organizational structure an input to a bid/no bid decision.
No
51
What is important for suppliers to understand in relation to a Request for Information (RFI)?
It is used to obtain information to support decision making
52
After giving a presentation on their proposal response, a supplier suggests having lunch / dinner with you as the customer to continue the discussion. Who should pay this expense?
First check your corporate hospitality policy'
53
If you are the buyer, what do you need to be sure of when you enter into the BAFO stage?
You have budgetary approval to proceed with the procurement
54
How should you handle the supplier's cost response to a proposal?
Evaluate cost responses separately to technical responses
55
In the bidding process, what process will help you to choose between suppliers once two or three suppliers have been
shortlisted?
BAFO
56
What is one of the aims of the final round in the proposal process?
Lowering the cost of the suppliers' proposal
57
What should be used to assess how many suppliers intend to respond to a RFx?
Intent to bid due date
58
Which of the following statements islare true about the scope of responsibility of an RFx single point of contact?: 1) They will coordinate all related supplier-company interactions, 2)They will coordinate all related intra-company communications
Both 1 & 2 are true
59
Bidders will ask questions about your request for proposal. Which of the below is best practice in responding to them?
Maintain confidentiality by not advising bidders who asked what question
60
If you are the buyer, what do you need to be sure of when you enter into the BAFO stage?
You have budgetary approval to proceed with the procurement
61
In the bidding process, what process will help you to choose between suppliers once two or three suppliers have been
shortlisted?
BAFO
62
What approach should be taken to manage large RFP efforts?
The project management approach your company uses for large projects
63
What should be used to assess how many suppliers intend to respond to a RFx?
Intent to bid due date
64
What approach should be taken when answering questions submitted by suppliers in relation to an RFP?
Ensure that the supplier who asked the question cannot be identified when you send out the responses.
65
What is one of the aims of the final round in the proposal process?
Lowering the cost of the suppliers' proposal
66
Why is it important to understand how your domestic law affects bidding?
To understand what constitutes a binding offer and acceptance
67
under (English) Common Law, how may an offer be revoked?
By giving notice to the other party prior to acceptance that the offer has been revoked
68
Which legal code does not provide a mechanism for an offer to be revoked if it states a time frame and it has been received by the customer?
UNCISG
69
Above what value does the Uniform Commercial Code in the USA require contracts to be in writing?
US$500
70
What helps in later phases in relation to terms & conditions identified as being possible areas of disagreement during the bid phase?
Ensuring clarity & openness between the parties
71
To which sales transactions may the UN Convention on Contracts for the International Sale of Goods (CISG) apply?
Sales transactions between convention countries
72
What elements should be included in the event a letter of intent is used?
A valid until date and understanding of consequences if not enacted
73
Which of the following statements about offer termination islare true? : 1) Offers may not be terminated once they have been
made, and 2) Offers may only be terminated using the same method by which the offer was made
Neither 1 or 2 is true
74
Which type of transaction does the UNCISG cover?
The sale of goods only
75
In order to be enforceable, a contract formed under the UN Convention on Contracts for the International Sale of Goods (CISG) must be
Able to be proved by any means and does not necessarily have to be in writing
76
What effect does the UN Convention on Contracts for the International Sale of Goods (CISG) have on stating a time limit in
which the offer must be accepted?
Creates a revocable offer
77
When preparing your bid, you should ask yourself a range of questions, including?: 1) How to get all parties to work on the
bidder's time-zone, 2) Which terms are controlled by law & which are left to negotiation?, 3) What liability may be imposed for non-performance?, 4) Will the terms of your agreement be valid in the country in which the work is to be performed?
2, 3, 4
78
What do cross-border contracts (for goods) involving countries who have signed up to the UN Convention on Contracts for the
International Sale of Goods (CISG) provide?
CISG automatically applies unless specifically excluded
79
What effect does the UN Convention on Contracts for the International Sale of Goods (CISG) have on stating a time limit in which the offer must be accepted?
Creates an irrevocable offer
80
Which of the following statements about offer termination is/are true? : 1) Offers may not be terminated once they have been
made, and 2) Offers may only be terminated using the same method by which the offer was made
Neither 1 or 2 is true
81
What should be checked when considering supplier references?
That they are good quality and they can be validated
82
When conducting evaluation of proposals, each team member should score what?
The relevant section for their area of knowledge for each proposal
83
Which of the following are elements of total cost of ownership?: 1) Internal resources, 2) Opportunity costs, 3) Tangential
property, 4) Transfer of title
1, 2, 3
84
A very complex project may require a more segmented approach to evaluation. This is called
Two cycle evaluation
85
What are intangible evaluation criteria?
Factors that rely on organizational culture and behavior
86
What is the first step in developing an evaluation process?
Develop an organizational evaluation model & process
87
What should be checked when considering supplier references?
That they are good quality and they can be validated
88
When embarking on a long-term project, which of the following is often not given adequate consideration at the proposal
evaluation stage?
The supplier's cultural compatibility with the buyer
89
By understanding projects on a stakeholder's radar screen, you will
Stay informed and maintain confidence
90
Stakeholders are likely to have the least focus on what aspects of the contract?
The terms and conditions
91
When you are substantially affected by a project, but you are not able to greatly influence it, then you are which type of
stakeholder?
Keep informed
92
A simple stakeholder map does not look at which of the following?
The level of independence that a stakeholder may have
93
A stakeholder group with a low level of impact and a high level of dependence on an outcome is represented as which group type for communication purposes?
Keep satisfied
94
By understanding projects on a stakeholder's radar screen, you will
Stay informed and maintain confidence
95
What should be considered when identifying a stakeholder's important issues?: 1) What programs they have in the near future, 2) What they consider to be a risk
Both 1) and 2)
96
When you are substantially affected by a project, but you are not able to greatly influence it, then you are which type of stakeholder?
Keep informed
97
Who is the primary catalyst for obtaining the right contract and then managing the delivery of the contracted objectives?
The contract and commercial management professional
98
By understanding projects on a stakeholder's radar screen, you will
Stay informed and maintain confidence
99
If you are unlikely to be impacted by a contract and you have little importance towards it then you are most likely to be categorized as which type of stakeholder?
Build awareness
100
Stakeholders are likely to have the least focus on what aspects of the contract?
The terms and conditions
101
What can be the impact of the contract management process not being integrated with product lifecycle management?
Negative market image
102
What is a key element in the contracts role in product lifecycle management?
Validate proposed new or amended terms and conditions with corporate capabilities
103
What should terms and conditions provide for new products/services?
Competitive advantage
104
When understanding the market they operate in, best practice companies with a large product portfolio expect which of the following?
Their terms and conditions to support successful sales agendas
105
What does having contracting as an integral part of product/service development provide to the business?
Increased revenue and better customer opportunities
106
What should be assessed when considering how effective the contracts role is in product lifecycle management?
How frequently deals need to be handled as special bids
107
What should terms and conditions provide for new products/services?
Competitive advantage
108
When understanding the market they operate in, best practice companies with a large product portfolio expect which of the following?
Their terms and conditions to support successful sales agendas
109
What does a buyer rely upon in Solutions contracts?
The suppliers expertise to ensure an effective solution
110
What is an example of a Solutions contract?
A technical capability as part of a greater project
111
Which of the following statements about the critical success factors for outsourcing from the purchaser's perspective is/are true?: 1) Knowing the strategic direction they will be taking, 2) Building in contractual flexibility
1 and 2 are true
112
Why might a contract be needed for a straightforward or low value product acquisition?
Contracts are always necessary
113
What advantage might an outsourcer provide?
Source of ideas
114
What specific term or issue do outsourcing contracts introduce?
Transition
115
Which commercial terms, published by the International Chamber of Commerce, are widely used for defining delivery terms in international transactions
Incoterms
116
True or False: Two of the critical success factors for outsourcing from the purchaser's perspective are establishing performance benchmarks and understanding how value can be added by outsourcing.
TRUE
117
What issue frequently results from scope of work drafts produced by technical managers?
They inadvertently override key terms
118
Which of the following statements about the critical success factors for outsourcing from the purchaser's perspective is/are true?: 1) Knowing the strategic direction they will be taking, 2) Building in contractual flexibility
1 and 2 are true
119
The contract structure should reflect which of the following?
The nature & value of the relationship
120
What contract clause, usually limited to 'Acts of God', specifies the conditions under which either of the parties may be excused from performance?
Force majeure
121
You have decided information needs to be confidential. What is a key consideration when creating the Non-Disclosure Agreement (NDA)?
How long should the information remain confidential
122
The contract structure should reflect which of the following?
The nature & value of the relationship
123
What are liquidated damages?
A contract provision to assess reasonable damages for specific instances like late delivery
124
When a term is specific to the deal, where in the contract will you find its meaning conveyed?
Definitions
125
When does warranty start?
As defined in the contract
126
Liquidated damages are a form of what?
Compensation
127
What do you need to be particularly wary of if allowing substitutions to deliverables in the contract?
There are appropriate acceptance terms for substitutions
128
When does warranty start?
As defined in the contract
129
Which contract clause is used to grant protection against potential losses?
Indemnity
130
Which of the following statements about legal review of contract terms is / are true? 1) All terms should be reviewed by a lawyer, 2) Negotiating and finalizing the contract wording may be speeded up by legal review of all the contract documentation
Neither 1 or 2 is true
131
The contract structure should reflect which of the following?
The nature & value of the relationship
132
Which of the following would be most likely lead to termination for cause?
One party breaches or threatens to breach the contract
133
Liquidated damages are a form of what?
Compensation
134
What do the completion/acceptance criteria detail?
Both parties' obligations relative to the performance of the deliverables
135
What do you need to be particularly wary of if allowing substitutions to deliverables in the contract?
There are appropriate acceptance terms for substitutions
136
Which contract clause is used to grant protection against potential losses?
Indemnity
137
Which of the following statements about legal review of contract terms is / are true? 1) All terms should be reviewed by a lawyer, 2) Negotiating and finalizing the contract wording may be speeded up by legal review of all the contract
Neither 1 or 2 is true
138
The contract structure should reflect which of the following?
The nature & value of the relationship
139
What do the completion/acceptance criteria detail?
Both parties' obligations relative to the performance of the deliverables
140
When a term is specific to the deal, where in the contract will you find its meaning conveyed?
Definitions
141
When does warranty start?
As defined in the contract
142
How does European Union law address the principle of exclusive territory of a distributor?
You may be in violation of the law if it is only granted for one ELI country
143
In creating distributor agreement termination provisions, what term should be defined in the absence of definition in local law?
Just cause
144
What is one of the drivers to form business consortia to contract for projects?
The risk is too great to reasonably be assumed by a single entity
145
What is a joint venture?
A cooperative business activity between two or more separate organizations for strategic purposes.
146
A consortium agreement usually requires which of the following: 1) Joint and several liability, 2) Responsibility for own scope, 3) Responsibility for others scope, 4) Creation of a new legal entity
1, 2, 3
147
The EU anti-competitive regulations in relation to distributors addresses what type of restraint?
Vertical
148
What factor is critical for Equity Joint Venture partners to anticipate, plan & agree?
The termination of the joint venture
149
What is one of the drivers to form business consortia to contract for projects?
The risk is too great to reasonably be assumed by a single entity
150
Which of the following statements about the reasons for using agents, representatives & distributors is/are true: 1) A special relationship may be required and such relationships are helpful in
conducting business in a particular market, 2) There will always be local business customs that are legally problematic in the home country of the principal
Only 1 is true
151
What is a joint venture?
A cooperative business activity between two or more separate organizations for strategic purposes.
152
Which of the following statements about the reasons for using agents, representatives & distributors is/are true: 1) A special relationship may be required and such relationships are helpful in conducting business in a particular market, 2) There will always be local business customs that are legally problematic in the home country of the principal
Only 1 is true
153
What is a Service Level Agreement (SLA)?
A comprehensive tool to monitor and manage supplier service performance
154
What is the first step in creating a Statement of Work?
Gathering the business needs and goals
155
Which of the following are fundamental for inclusion in an SLA?: 1) Roles and responsibilities, 2) Consequences of failure, 3) Performance measurement, 4) Executive engagement
1, 2, 3
156
Which of the following statements about supplier's quality control and assurance procedures is/are true: 1) They should ensure the desired quality level in project deliverables, 2) They are maintainable and can be enhanced to meet anticipated changes
Both 1 and 2 are true
157
Which of the following are fundamental for inclusion in an SLA?: 1) Roles and responsibilities, 2) Consequences of failure, 3) Performance measurement, 4) Executive engagement
1, 2, 3
158
Which of the following statements about supplier's quality control and assurance procedures is/are true: 1) They should ensure the desired quality level in project deliverables, 2) They are maintainable and can be enhanced to meet anticipated changes
Both 1 and 2 are true
159
Why should a word be changed when drafting a contract?
When you wish to clarify the intended meaning
160
How are missing terms treated by courts in common law countries?
The courts will fill in missing terms
161
Which is the overriding principle for drafting a contract?
Begin with the end in mind
162
What best defines a contract?
A promise between parties
163
How do best practice companies perform contract drafting?
As a team effort
164
Identify the missing words in the following sentence: "Will the contract document I am using be .
— and provide my company with the protection it needs?"
Sufficient to describe the transaction completely
165
What is a contract?
It defines what is being sold and bought and when that occurs
166
What is essential when constructing a contract?
It should provide answers and remedies for most problems that may arise in the transaction it covers
167
Streamlining our contracts into a suite of standard template contracts is going to achieve what outcome?
Reduced relationship complexity and therefore less risk exposure
168
True/False: Streamlining, standardizing and optimizing our contracts which will result in an increase in the size of the legal team
False
169
The use of a knowledge management tool is a means to achieve which of the following? 1) Support risk analysis as part of negotiations planning, 2) Better long-term relationships
Both 1 and 2
170
Streamlining our contracts into a suite of standard template contracts is going to achieve what outcome?
Reduced relationship complexity and therefore less risk exposure
171
Streamlining, standardizing and optimizing our contracts is NOT likely to result in which of the following outcomes?
An increase in the size of the legal team
172
The Chaos approach to knowledge management is best suited to
Research and discovery applications
173
The use of a knowledge management tool is a means to achieve which of the following? 1) Support risk analysis as part of negotiations planning, 2) Better long-term relationships
Both 1 and 2
174
What are the 3 schools of thought or approaches to knowledge management?
Directed Process, Chaos and Field
175
What is a key element in driving successful negotiations?
The motivation of the parties
176
Which of the following are common obstacles faced by those planning negotiations?: 1) Stubborn suppliers, 2) Being involved too early, 3) uncooperative colleagues, 4) Confused roles
1, 3, 4
177
Which of the following are common weaknesses in the early stages of the negotiation process?: 1) Poor planning, 2) Subject matter experts, 3) unclear roles, 4) Conflicting motivations
1, 3, 4
178
Which pressure do text books such as "Getting to yes" not properly address in their theoretical approach to negotiating?
Company politics, measurements and organization
179
Why would experienced negotiators, who thrive on creative solutions to a negotiation, say that greater internal controls and discipline improve the outcome?
They want to avoid a negotiation being compromised by unplanned actions
180
Price, volume, and delivery date are types of what kind of negotiation goal?
Tangible
181
The bargaining zone in a negotiation represents which of the following?
The upper and lower limit you set for a negotiation
182
What is it important to assess when understanding our side's negotiation goals?
That the other party is willing and able to accommodate us
183
What type of framing is focused on how the deliberations will proceed?
Process
184
What type of framing is focused on the risk associated with any negotiated commitment?
Loss-gain
185
Which of the following elements are part of the final stage of negotiation, Stage 4 - Agreement or final breakdown?: 1) Wrapping up, 2) Agreement structuring, 3) Summarizing. 4) Deadlock
1, 2, 3
186
The bargaining zone in a negotiation represents which of the following?
The upper and lower limit you set for a negotiation
187
What type of framing is focused on a key issue or concern?
Substantive
188
In a negotiation the more issues you have the more likely there is to be which of the following?
Tradable items
189
Relationship, image, and reputation are types of what kind of negotiation goal?
Intangible
190
What is it important to assess when understanding our side's negotiation goals?
That the other party is willing and able to accommodate us
191
What is substantive framing in negotiation?
Defining whether there is a focus on a specific item or issue
192
Which of the following are elements of the Argument, Compromise & Search for Alternative Solutions stage of negotiation?: 1) Search for Alternative Solutions, 2) Communicate trades, 3)Compromise on negotiation team membership, 4) use of persuasion techniques
1, 2, 4
193
Being evasive is indicative of which negotiation style?
Positional
194
How do best practice negotiators approach different negotiation styles?
They are able to use all styles interchangeably depending on need
195
What do people adopting a positional negotiating style assume?
Only one party can emerge from the negotiation a clear winner
196
What is an advantage of principled negotiating?
Flexibility
197
What is critical to understand in relation to issues that may be non-negotiable?
The context of all parties involved
198
How do collaborative negotiators view information?
A means to strengthen the overall outcome
199
Threats, tension & pressure are indicative of which negotiation style?
Positional
200
How should the negotiating environment be established?
In a manner conducive to agreement
201
What general human motivation is likely to lead to a fair outcome in negotiations?
The desire to achieve balance
202
What should be recognized about internal consensus in negotiations?
Often requires its own negotiation
203
How do best practice negotiators approach different negotiation styles?
Assess which style is appropriate & use all confidently
204
What is a mutual exchange of value between parties?
A trade-off
205
What is a useful measure of power in negotiation?
The amount of cooperation required from the other party
206
What should a negotiator do rather than concede?
Trade
207
Which of these is least likely to cause a negotiation to fail?
understanding a motivation to reject a viewpoint
208
How should the negotiating environment be established?
In a manner conducive to agreement
209
What should a negotiator understand in relation to negotiation goals of both parties?
The priorities among those goals
210
What should be used to sell ideas in negotiations?
Logic
211
A well constructed problem solving opening to a negotiation is likely to use which negotiation style?
Principled
212
What is an advantage of closing the last gap on a flip of a coin?
It provides an efficient and fair way to close a last issue of little importance to either side
213
What process can negotiation be defined as?
The coming to terms on a particular matter in which the parties have corresponding or complementary desires
214
Which of the following are methods for closing the last gap in negotiations?: 1) Split the difference, 2) Coin flip, 3) use alternative supplier, 4) Third party umpire
1, 2, 4
215
Which of the following statements about the last gap is/are true?: 1) It may represent unfinished emotional business, 2) It occurs in every negotiation
Only 1 is true
216
What is a key aspect of constructing trades in negotiation?
Trading an item that has a low value to one party but a high value to the other party
217
What is the last gap in a negotiation?
The last step necessary to reach agreement
218
Which of these factors are stages in Michael Porter's Value Chain, a method of understanding the behavior of costs?: 1) Inbound logistics, 2) Operations, 3) Accounting. 4) Services
1, 2, 4
219
You have identified that many potential customers cannot afford the purchase price of your new product. You should:
Look at creating alternative options such as lease or rental agreements
220
Best practice corporations will do which of the following? 1) Ensure a healthy overlap between legal terms and financial terms during negotiation 2) Restrict the ability of contracts teams to review financial metrics, and focus them on terms and conditions instead
Only 1
221
In a price analysis, which of these terms will have the greatest bearing on cost?
Warranty performance
222
What might a customer use if performance is key to their profitability or reputation?
Service credits and incentives
223
What type of contract payment option is intended to promote collaboration & the achievement of the customer's objectives?
Incentives
224
What type of contract payment option is intended to promote collaboration & the achievement of the customer's objectives?
Shared benefit
225
Which of the following is true about the contracts specialist? 1) They should only focus on contract terms 2) They do not need to be involved in cost and pricing decisions
Neither 1 or 2 is true
226
Emerging practice identifies post-signature contract management as being a framework for what?
Delivering effective contract outcomes
227
Which core contract element addresses what the contract is about?
Scope
228
Which core contract element identifies whether the contract is working?
Service levels (SLAs), metrics, milestones
229
Which meeting agenda includes key contract points, project deliverables, timescales and any unclear aspects of the contract?
Contract handover meeting
230
TRUE/FALSE. When the contract was agreed is one of the the four core elements of a contract?
False
231
Payment is a critical issue for both parties in terms of __________, accuracy, and amounts.
Timing
232
What are the "trinity' of contract and project management?
Scope, schedule and cost
233
What should be used to manage internal and external contract performance?
Key performance indicators
234
With the proper monitoring and measurement tools in place, reliable warning signs can be seen in the data as early as
10% completion
235
When a target date is missed and the deliverable subsequently accepted on a later date, what is the best practice approach to take?
Record the problem and resolve immediately
236
When monitoring the performance schedule, which are concerns that should be addressed: 1) A deliverable that is late, 2) A late deliverable that is accepted
Both 1 & 2 are concerns that need to be addressed
237
In considering the impact of the contract change, what should team members document and report?
Whether there is an impact on other terms
238
Which of the following possible impacts of a contract change on performance are ordinarily true?: 1) May improve or get worse, 2) KPls may change or new KPls established, 3) Contract performance is legally required to improve by at least 10%, 4) New SLAS may need to be established
1, 2, 4
239
TRUE/FALSE: Tracking cost estimates against contract price to forecast likely profit or loss levels is used to anticipate claims.
FALSE
240
What can result from an unauthorized change?
Contract claim
241
What is a typical reason for a contract change?
Errors or omissions in the contract documentation
242
What should the contract reflect in relation to contract change management?
Core principles considered critical to success
243
A disparity in expectations between the customer and supplier can lead to dispute and contracting parties rightfully expect accurate and useful information to flow between them in a timely
manner.
TRUE
244
In what circumstance is litigation the default route for solving disputes?
The contract does not specify alternative means of dispute resolution
245
What should be the first step in a dispute resolution process?
Negotiation
246
Which of the following are underpinning causes of contractual disputes?: 1) High value contract, 2) Departure from agreed or reasonable processes (quality of work), 3) Poor contract management
causing ill-will between the parties, 4) Miscommunication
2, 3, 4
247
TRUE/FALSE: A typical mediation is confidential but not binding.
TRUE
248
Capturing lessons learned associated with a contract should happen when?
Throughout the contract lifecycle
249
In what circumstance may total rejection occur?
The product and/or service has failed in some fundamental way
250
What type of termination occurs when one party fails to meet its contractual obligations?
Termination for cause
251
What type of termination occurs when the parties agree to end the contract by agreement?
Termination for convenience
252
What type of acceptance means the requirements detailed in the contract have been met and there will be a smooth close-out?
unconditional
253
What type of responsibilities may continue following contract termination?
Continuing obligations
254
Partial acceptance is represented by what situation?
There will be multiple steps to closure
255
What is an example of a responsibility that may continue after the contract has ended?
Confidentiality
256
Which of the following are typical contract close-out activities: 1) Making final payment, 2) Resolution of outstanding claims, 3) Verifying physical completion, 4) Drawing down on performance
bond
1, 2, 3
257
What key issue should be addressed regardless of how a contract may be terminated?
Title and rights to work in progress
258
Which of the following are commercially sensitive areas that a supplier should protect with a non-disclosure agreement (NDA)?: 1) Company structure, 2) Current and possible future technology, 3) Market potential, 4) Service capabilities
2, 3, 4
259
What other benefit does the weighting of evaluation criteria achieve, in addition to elevating the influence of the most important criteria?
Weighting the high-level categories accordingly will provide appropriate factoring and ample evidence of strategic focus.
260
Which of the following terms designates an obligation or duty?
Shall
261
What approach to negotiation involves the negotiator seeking to understand the interests of both parties?
Principled
262
What is a disadvantage of positional negotiating?
```
○ Inflexibility
○ Damages relationships
○ Failure rate
○ Achieves unsatisfactory / inefficient agreement
Causes loss of focus
```
263
Which of the following are to defend against a supplier claim?:
○ Selection criteria and rationale
○ Request for Proposal
○ Response(s) to RFPs and RFIs
○ Contracts and agreements (including changes)
○ Progress reports
○ Testing plans and results
○ Acceptance criteria, metrics and letters.
○ Copy of deliverables
○ Payment authorizations
○ User communications / complaints
○ Contact / meeting summaries and minutes
○ Action item / resolution list
○ Dispute, claim records, change history and documentation
These are the documentary records that you should be building in your virtual
