Contract Management

Question 1

When a REA is being considered, does the contractor stop work?

Answer 1

No

Question 2

How many days is usually given for a dispute to be resolved?

Answer 2

120

Question 3

What happens if you don’t acknowledge a claim that is over $100,000

Answer 3

It is considered a denial

Question 4

Who is the onus on to prove for liquidated damages?

Answer 4

Agency

Question 5

What is one of the purposes of liquidated damages?

Answer 5

To motivate the contractor to deliver on time

Question 6

If the contract is delayed, and it is an excusable delay, would liquidated damages be a possible tool?

Answer 6

No, not is the delay was excusable

Question 7

Is it an excusable delay if the contractor’s supplier cannot provide materials?

Answer 7

No, it is a delay that can be overcome. They must find an alternate and bear the cost, unless the cost is exorbitant

Question 8

What if the delay is due to the fact that the agency didn’t inspect at the agreed upon time?

Answer 8

Then not the contractors fault and is excusable

Question 9

What if a hurricane came because it was the normal hurricane season, is this considered an excusable delay for the contractor?

Answer 9

Too bad.

Question 10

What if the sub and contractor had a dispute that isn’t resolved thus the work was delayed?

Answer 10

Tough.

Question 11

What if the subcontractor caused a delay that was not in the contractors control?

Answer 11

Excuse it

Question 12

What if we order work to stop? Does contractor get compensated?

Answer 12

No, unless the delay is unreasonable.

Question 13

What if a key employee dies? Is this considered excusable?

Answer 13

Nope.

Question 14

If there is a defect and the contractor corrects, who pays for re inspection?

Answer 14

Contractor

Question 15

Can an agency decide after the contract is signed to make their testing more stringent?

Answer 15

No, once the test performance level is established, it can’t be changed.

Question 16

If inspection is at five locations, if they accept at three is that final acceptance?

Answer 16

No, must be accepted at ALL

Question 17

The agency changes the location and/or time of an inspection, thus the contractor had to pay overtime for an employee. Who bears the costs?

Answer 17

Agency

Question 18

What is exception inspection?

Answer 18

Don’t inspect until a complaint is lodged

Question 19

What kind of items are normally inspected after delivery?

Answer 19

Low value, MRO

Question 20

When is payment made if term is final inspection?

Answer 20

Payment is only made after inspection done.

Question 21

What is attribute and variable sampling?

Answer 21

Attribute is either the product meets or does not meet spec, variable is within a tolerance.

Question 22

Which is a faster method of sampling, attribute or variable?

Answer 22

Attribute

Question 23

What would be an example of Final Article Testing?

Answer 23

Military weapons

Question 24

If delivery date has not passed, can you still refuse the contractors offer to correct a defect?

Answer 24

No. You must allow correction if delivery date has not passed.

Question 25

Does agency have to allow substitutions?

Answer 25

No. Refuse based on Strict Compliance

Question 26

Implied warranty - if you inspect and accept, then find a patent defect, can you reject based on implied warranty?

Answer 26

Not after acceptance if it’s a patent defect.

Question 27

What are Cardinal Rules

Answer 27

Based on the plain language of the contract, what the meaning was at signing

Question 28

What are secondary rules?

Answer 28

Whole instrument - whole document, overall contract

Express language rules - if there is a list, then the contract only applies to that list.

Question 29

What are bilateral modifications?

Answer 29

Both parties need to execute to be binding

Question 30

Either the agency has been given this right in the contract, or the modification to the contract is for a minor purpose. What is it?

Answer 30

Unilateral modification

Question 31

The agency interprets the contract in a way that is more expensive than what the contractor thought. What kind of change is this?

Answer 31

Constructive change

Question 32

If the very nature of the contract is changed because of many small changes, is the contract still binding?

Answer 32

The contractor can disregard the provisions of the contract in this case.

Question 33

What is a claim and what is a dispute?

Answer 33

Claim is for money, dispute is when there is a disagreement.

Question 34

What is the difference between receiving inspection and final inspection?

Answer 34

Receiving inspection is upon receipt and final inspection is performed when the contract is complete

Question 35

Once you create the Performance Assessment Plan, is it final?

Answer 35

No. The PAP is a dynamic document that should be revised if needed during the contract.

Question 36

How often should performance reviews be conducted?

Answer 36

At least quarterly.

Question 37

If a supplier is developing a prototype to sample for the agency, does the supplier always bear all the costs for this?

Answer 37

No. The agency may participate in these costs.

Question 38

Name the elements of a contract

Answer 38

Offer, acceptance, definiteness,
legal consideration, mutuality of obligation,
competent parties, legal purpose.

Question 39

What rules do the courts use for interpretation of a contract?

Answer 39

Common law

Question 40

List the conditions that must exist for an agency to be able to reject goods after acceptance.

Answer 40

Latent defects
Fraud
Gross negligence resulting in fraud
Warranties

Question 41

If defects cannot be corrected or completed by a certain time, can the agency terminate the contract?

Answer 41

Yes.

Question 42

What is it called if both parties mutually agree to terminate a contract?

Answer 42

Discharge by mutual assent