Question 1

Which of the following best explains 'tendering'?

Accepted Answer

A)  Activities needed to select contractor for the work based on competitive bids. 
B)  Activities needed to develop technical specification of the work. 
C)  Activities needed to select contractor. 
D)  Activities need to implement a technical specification. 
A)  Activities needed to select contractor for the work based on competitive bids. 
B)  Activities needed to develop technical specification of the work. 
C)  Activities needed to select contractor. 
D)  Activities need to implement a technical specification. A

Question 2

Which of the following best explains 'performance bond'?

Accepted Answer

A)  Written guarantee from a third-party guarantor. 
B)  Guarantee issued by the bank of the supplier. 
C)  Holding company secures payment for agreed sum in case business unit fails to make payments. 
D)  Business unit guarantees to pay holding company. 
A)  Written guarantee from a third-party guarantor. 
B)  Guarantee issued by the bank of the supplier. 
C)  Holding company secures payment for agreed sum in case business unit fails to make payments. 
D)  Business unit guarantees to pay holding company. A

Question 3

Complex construction projects require which of the following?

Accepted Answer

A)  Professional project management. 
B)  Budgets. 
C)  Suppliers. 
D)  Materials. 
A)  Professional project management. 
B)  Budgets. 
C)  Suppliers. 
D)  Materials. A

Question 4

Which of the following best explains 'contracting'?

Accepted Answer

A)  Engaging in contractual relationships with one or more parties. 
B)  Asking for the services of another organisation. 
C)  Decreasing the size of the organization. 
D)  Doing everything yourself. 
A)  Engaging in contractual relationships with one or more parties. 
B)  Asking for the services of another organisation. 
C)  Decreasing the size of the organization. 
D)  Doing everything yourself.

Question 5

In the key elements of the contracting process which element comes before claims and after testing and delivery?

Accepted Answer

A)  Maintenance and guarantee. 
B)  Project execution. 
C)  Detailed project engineering and planning. 
D)  Claims. 
A)  Maintenance and guarantee. 
B)  Project execution. 
C)  Detailed project engineering and planning. 
D)  Claims.

Question 6

Which of the following is a dimension of contract management?

Accepted Answer

A)  Information flow. 
B)  Tendering. 
C)  Contracting 
D)  Evaluating. 
A)  Information flow. 
B)  Tendering. 
C)  Contracting 
D)  Evaluating.

Question 7

In the key elements of the contracting process which element comes before subcontracting and procurement and after contract negotiation and closure?

Accepted Answer

A)  Basic design and engineering. 
B)  Claims. 
C)  Detailed project engineering and planning. 
D)  Testing and delivery. 
A)  Basic design and engineering. 
B)  Claims. 
C)  Detailed project engineering and planning. 
D)  Testing and delivery.

Question 8

Which of the following best describes the way in which the four dimensions of contract management should be managed?

Accepted Answer

A)  Sequentially. 
B)  One at a time. 
C)  In parallel. 
D)  Two at a time. 
A)  Sequentially. 
B)  One at a time. 
C)  In parallel. 
D)  Two at a time.

Question 9

Which of the following best explains 'supply chain perspective'?

Accepted Answer

A)  Contracts are closed based on recognizing interests of key supply chain partners. 
B)  Contracts are open to any seller in the supply chain. 
C)  Contracts are closed based upon interests of buyer. 
D)  Contracts are based on interests of seller only. 
A)  Contracts are closed based on recognizing interests of key supply chain partners. 
B)  Contracts are open to any seller in the supply chain. 
C)  Contracts are closed based upon interests of buyer. 
D)  Contracts are based on interests of seller only.

Question 10

Complex construction projects require which of the following?

Accepted Answer

A)  Suppliers. 
B)  Budgets. 
C)  Professional procurement. 
D)  Materials. 
A)  Suppliers. 
B)  Budgets. 
C)  Professional procurement. 
D)  Materials.

Question 11

Which of the following best explains 'fixed price contract'?

Accepted Answer

A)  Contractor is allowed to fix the price of the contract. 
B)  Contractor has the price fixed by a third party. 
C)  Contractor can vary the price during the contract. 
D)  Contractor agrees to work based on a fixed contract. 
A)  Contractor is allowed to fix the price of the contract. 
B)  Contractor has the price fixed by a third party. 
C)  Contractor can vary the price during the contract. 
D)  Contractor agrees to work based on a fixed contract.

Question 12

Which of the following best explains 'bank guarantee'?

Accepted Answer

A)  Guarantee issue by supplier. 
B)  Guarantee issued by the bank of the supplier. 
C)  Guarantee issued by the purchaser. 
D)  Guarantee issued by the bank of the purchaser. 
A)  Guarantee issue by supplier. 
B)  Guarantee issued by the bank of the supplier. 
C)  Guarantee issued by the purchaser. 
D)  Guarantee issued by the bank of the purchaser.

Question 13

Which of the following is an element of cost-reimbursable contracts?

Accepted Answer

A)  Wages and salaries of key managers and workers. 
B)  Contractor losses incurred. 
C)  Costs of contractor future investments. 
D)  Costs of unsuccessful bidders. 
A)  Wages and salaries of key managers and workers. 
B)  Contractor losses incurred. 
C)  Costs of contractor future investments. 
D)  Costs of unsuccessful bidders.

Question 14

Which of the following best explains 'moral hazard'?

Accepted Answer

A)  Risks not subject to systematic assessment. 
B)  Risks that both contractual parties will primarily pursue their own interest. 
C)  Risk that one party will pursue their own interest. 
D)  Risk of a breach of legislation. 
A)  Risks not subject to systematic assessment. 
B)  Risks that both contractual parties will primarily pursue their own interest. 
C)  Risk that one party will pursue their own interest. 
D)  Risk of a breach of legislation.

Question 15

Which of the following is the prevailing co-ordination mechanism for settling contractual disputes and conflicts?

Accepted Answer

A)  Negotiation. 
B)  Arbitration. 
C)  Mediation 
D)  A court case. 
A)  Negotiation. 
B)  Arbitration. 
C)  Mediation 
D)  A court case.

Question 16

In the key elements of the contracting process which element comes before testing and delivery and after subcontracting and procurement?

Accepted Answer

A)  Basic design and engineering. 
B)  Project execution. 
C)  Detailed project engineering and planning. 
D)  Claims. 
A)  Basic design and engineering. 
B)  Project execution. 
C)  Detailed project engineering and planning. 
D)  Claims.

Question 17

Which of the following best explains 'design-build-finance-maintain (DBFM) contract'?

Accepted Answer

A)  Contractor designs and provides in accordance with the client's requirements, plant and/or other works. 
B)  Contractor constructs the project in accordance with the design provided by the client. 
C)  Contractor delivers project or work turnkey. 
D)  Contractor completes work at own risk and gets paid long-term payments after delivery. 
A)  Contractor designs and provides in accordance with the client's requirements, plant and/or other works. 
B)  Contractor constructs the project in accordance with the design provided by the client. 
C)  Contractor delivers project or work turnkey. 
D)  Contractor completes work at own risk and gets paid long-term payments after delivery.

Question 18

Which of the following is a cause of 'agency problem'?

Accepted Answer

A)  Sub-contractors failure to meet milestone deadlines. 
B)  Conflict of interest between buyer and seller due to moral hazard. 
C)  Conflict of interest between buyer and seller due to engineering and planning problems. 
D)  Conflict of interest between buyer and seller due to poor quality performance. 
A)  Sub-contractors failure to meet milestone deadlines. 
B)  Conflict of interest between buyer and seller due to moral hazard. 
C)  Conflict of interest between buyer and seller due to engineering and planning problems. 
D)  Conflict of interest between buyer and seller due to poor quality performance.

Question 19

Which of the following best explains 'concern guarantee'?

Accepted Answer

A)  Guarantee issue by supplier. 
B)  Guarantee issued by the bank of the supplier. 
C)  Holding company secures payment for agreed sum in case business unit fails to make payments. 
D)  Business unit guarantees to pay holding company. 
A)  Guarantee issue by supplier. 
B)  Guarantee issued by the bank of the supplier. 
C)  Holding company secures payment for agreed sum in case business unit fails to make payments. 
D)  Business unit guarantees to pay holding company.

Question 20

Which of the following is a dimension of contract management?

Accepted Answer

A)  Tendering. 
B)  Contracting. 
C)  Evaluating. 
D)  Relationship. 
A)  Tendering. 
B)  Contracting. 
C)  Evaluating. 
D)  Relationship.

Which of the following best explains 'tendering'?

Which of the following best explains 'performance bond'?

Complex construction projects require which of the following?

Which of the following best explains 'contracting'?

In the key elements of the contracting process which element comes before claims and after testing and delivery?

Which of the following is a dimension of contract management?

In the key elements of the contracting process which element comes before subcontracting and procurement and after contract negotiation and closure?

Which of the following best describes the way in which the four dimensions of contract management should be managed?

Which of the following best explains 'supply chain perspective'?

Complex construction projects require which of the following?

Which of the following best explains 'fixed price contract'?

Which of the following best explains 'bank guarantee'?

Which of the following is an element of cost-reimbursable contracts?

Which of the following best explains 'moral hazard'?

Which of the following is the prevailing co-ordination mechanism for settling contractual disputes and conflicts?

In the key elements of the contracting process which element comes before testing and delivery and after subcontracting and procurement?

Which of the following best explains 'design-build-finance-maintain (DBFM) contract'?

Which of the following is a cause of 'agency problem'?

Which of the following best explains 'concern guarantee'?

Which of the following is a dimension of contract management?

The Role of Purchasing in the Value Chain

Industrial Buying Behavior: Decision-Making in Purchasing

The Purchasing Management Process

Buying Business Services

Public Procurement

Purchasing and Business Strategy

Outsourcing and Risk Management

Category Sourcing: Developing Effective Sourcing Strategies

Purchasing Innovation and Quality Management

Purchasing Logistics and Supply Chain Management

Purchasing Organization

Performance Measurement and Governance in Purchasing

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters

Exam 5: Contract Management for Complex Projects

Which of the following best explains 'tendering'?

Which of the following best explains 'performance bond'?

Complex construction projects require which of the following?

Which of the following best explains 'contracting'?

In the key elements of the contracting process which element comes before claims and after testing and delivery?

Which of the following is a dimension of contract management?

In the key elements of the contracting process which element comes before subcontracting and procurement and after contract negotiation and closure?

Which of the following best describes the way in which the four dimensions of contract management should be managed?

Which of the following best explains 'supply chain perspective'?

Complex construction projects require which of the following?

Which of the following best explains 'fixed price contract'?

Which of the following best explains 'bank guarantee'?

Which of the following is an element of cost-reimbursable contracts?

Which of the following best explains 'moral hazard'?

Which of the following is the prevailing co-ordination mechanism for settling contractual disputes and conflicts?

In the key elements of the contracting process which element comes before testing and delivery and after subcontracting and procurement?

Which of the following best explains 'design-build-finance-maintain (DBFM) contract'?

Which of the following is a cause of 'agency problem'?

Which of the following best explains 'concern guarantee'?

Which of the following is a dimension of contract management?

The Role of Purchasing in the Value Chain

Industrial Buying Behavior: Decision-Making in Purchasing

The Purchasing Management Process

Buying Business Services

Public Procurement

Purchasing and Business Strategy

Outsourcing and Risk Management

Category Sourcing: Developing Effective Sourcing Strategies

Purchasing Innovation and Quality Management

Purchasing Logistics and Supply Chain Management

Purchasing Organization

Performance Measurement and Governance in Purchasing

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters