Term
| What is the definition of a contract and what are three key elements? |
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Definition
| (An agreement between two or more competent parties or persons that creates an obligation to do or not do a particular thing. An AGREEMENT in which the subject matter involved has been sufficiently defined. The agreement must be between two or more COMPETENT PARTIES or PERSONS. The underlying agreement MUST BE ENFORCEABLE by law.) - Contract Management Principles and Practices pp. R1-2&3 |
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Term
| When are people assigned to manage contracts? |
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Definition
| (According to best practices, all the players need to be involved from the start of the contracting process. The participation of the contract manager and project manager is necessary during the preaward phase to make sure that the commitments being made and expectations being set are actually achievable and consistent with seller policies and financial targets.) - Contract Management Principles and Practices pg. R1-6 |
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Term
| What is contract privity? |
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Definition
| (The relationship that exists between actual parties to a contract, as opposed to any relationship they may have with other parties who have some sort of interest in the contract. Generally, only an individual or organization that is party to a contract has enforceable rights or obligations under that contract. Example: Direct contractual relationship between the buyer and the seller and also a direct contractual relationship between the seller and subcontractor BUT no direct contractual relationship (no privity) between the buyer and subcontractor) - Contract Management Principles and Practices pg. R2-3 |
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Term
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Definition
| (Agency is the legal concept of delegation of authority, that is, giving someone authority to make binding commitments on your behalf. The person or organization delegating authority is the principle. The person or organization receiving authority is the agent.) - Contract Management Principles and Practices pg. R2-1 |
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Term
| What are the two types of contract authority? |
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Definition
| (ACTUAL is the authority that an individual is intended to have. This intent is communicated by either Expressed authority, which is in writing or Implied authority, which is intended by virtue of a person’s position. APPARENT is the authority that individuals have because they give a reasonable person the appearance of having the authority by virtue of their actions, their behavior, their title, etc.) - Contract Management Principles and Practices pg. R2-2 |
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Term
| What actions could change an independent contractor’s status to that of an employee? |
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Definition
| (It depends on who controls what will be done and how it will be done. Behavioral control; financial control; and the relationship of the parties) - Contract Management Principles and Practices pg. R2-4 |
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Term
| What are the 5 essential elements of a contract? |
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Definition
| OACML(An offer; An acceptance; Competent parties; Mutual consideration; Legality of purpose) - Contract Management Principles and Practices pg. R3-1 |
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Term
| What is a breach of contract? |
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Definition
| (A failure of a party to the contract, without legal excuse, to perform any promise that forms the whole or part of a contract.) - Contract Management Principles and Practices pg. R3-5 |
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Term
| What is the definition of <Waiver>? |
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Definition
| (To give up a right under the contract. Most contract terms and conditions will include a requirement that all waivers must be in writing and that a single waiver of a repetitive obligation is not an ongoing waiver.) Contract Management Principles and Practices pg. R3-7 |
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Term
| What is the definition of <Forbearance>? |
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Definition
| (Refraining from or delaying the exercise of a right. Forbearance does not prevent you from enforcing a right) Contract Management Principles and Practices pg. R3-7 |
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Term
| What is the definition of <Force Majeure> |
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Definition
| (A legal excuse for nonperformance based on unpredictable or uncontrollable events as listed in the clause by the parties. Ex: Natural Disaster) Contract Management Principles and Practices pg. R3-8 |
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Term
| What is the definition of <Finality of Acceptance>? |
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Definition
| (Acceptance of performance by the buyer. Acceptance by the buyer is final, unless one the following is present: FRAUD- Involves intentional misrepresentation or deceit by the seller that the buyer relies on to their detriment. GROSS MISTAKE- Should have known the product was faulty LATENT DEFECT- A defect that was present at the time an item was accepted but not noticeable by normal inspection procedures.) Contract Management Principles and Practices pg. R3-8 |
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Term
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Definition
| (if there is evidence in writing (such as a signed contract) the terms of the contract cannot be altered by evidence of oral (parol) agreements purporting to change, explain or contradict the written document. ) - Contract Management Principles and Practices pp. R1-2&33-9 |
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Term
| What are the three basic types of contracts and the risk associated with each? |
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Definition
| (Fixed-price or lump-sum contracts[High risk to the seller]; Cost-reimbursable contracts[Moderate risk to the buyer]; Time and Materials contracts[high risk to the buyer]) - Contract Management Principles and Practices pp. R5-1-9 |
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Term
| What is the definition of a variance and what are some examples? |
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Definition
| (Any departure from expectations (could be good or bad) Must be identified, measured and analyzed; Require prompt recognition and appropriate response; Has technical, schedule and/or cost impact; COST OVERRUN – Increase in cost, no increase in scope; COST GROWTH – Increase in cost, increase in scope)Contract Management Principles and Practices pg. 8-25 |
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Term
| What are three characteristics of claims and disputes and how can PMs effectively manage them? |
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Definition
(Are a normal part of contracting process-prevent them from disrupting project performance; MUST be resolved promptly and dispassionately; Expect them, and be prepared to deal with them accordingly.)
Contract Management Principles and Practices pg. 8-32 & AE8-1.1 #4 |
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Term
| Describe the three different types of contract termination: |
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Definition
(Termination by MUTUAL AGREEMENT – both parties agree to terminate either totally or partially; Terminate by CAUSE or DEFAULT – one party fails to perform; Terminate for CONVENIENCE – only allowed as stipulated by the contract, and the terminating party MUST reimburse the other as appropriate)
Contract Management Principles and Practices pp R8-7 to 9 & AE8-1.2 #8 |
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Term
| What is the definition of contract management? Include the three phases |
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Definition
| (A process of planning (preaward), forming (award), and administering(post award) agreement to buy or sell goods & services from or to another party) Contract Management Principles and Practices pg. 1-4 |
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Term
| What are the 5 “Ps” of successful contract management? |
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Definition
| (People; Process; Performance; Price; Payment) |
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