Buyers use a variety of methods to provide incentives to a seller to complete work early or within certain contractually specified time frames. One such incentive is the use of liquidated damages. From the seller's perspective, liquidated damages are what form of incentive?
Payment bonds are often required by the contract and require specific actions under the stated conditions. Payment bonds are specifically designed to ensure that the prime contractor provides payment of-
D.Subcontractors, laborers, and suppliers of material
E.Damages for accidents caused
When a seller breaches a contract, the buyer cannot receive-
E.All the above
The contracting function in an organization is considered to be decentralized when-
A.Each project manager has control over the contracting process for his or her project
B.The project manager controls contract award
C.The contracting person appointed to the project is available and under the project manager's direct control
D.Contracting is tailored to a single project
Which of the following terms represents a contract type category?
D.a & b
E.a, b, & c
Which item is not a basic element of a contract?
E.Legality of purpose
Three techniques used for procurement planning are-
A.Make-or -buy analysis, expert judgment, and contract type selection
B.Fixed-price, cost-reimbursement, and unit-price contracts
C.Cost and schedule estimates, invoice processing, and cash flow projections
D.Scope statement, change management, and marketing analysis
E.Contract type selection, negotiation, and cash flow projections
A buyer has negotiated a fixed-price incentive contract with the seller. The contract has a target cost of $200,000, a target profit of $30,000,and a target price of $230,000. The buyer has also negotiated a ceiling price of $270,000 and a share ratio of 70/30. If the seller completes the contract with actual costs of $170,000, how much profit will the buyer pay the seller?
Contracts may be written in any form that is understandable and enforceable, so project personnel often attempt to be "creative" in developing the contract's terms and conditions. If all the following options are available, the best course of action to meet the requirements of the project is to-
A.Preqare unique terms and conditions
B.Tailor an existing contract
C.Use standard clauses whenever possible
D.Avoid using contractual documents
E.None of the above
When costs increase because of changes in the scope of work, the project is experiencing-