Contract Management Flashcards
When a REA is being considered, does the contractor stop work?
No
How many days is usually given for a dispute to be resolved?
120
What happens if you don’t acknowledge a claim that is over $100,000
It is considered a denial
Who is the onus on to prove for liquidated damages?
Agency
What is one of the purposes of liquidated damages?
To motivate the contractor to deliver on time
If the contract is delayed, and it is an excusable delay, would liquidated damages be a possible tool?
No, not is the delay was excusable
Is it an excusable delay if the contractor’s supplier cannot provide materials?
No, it is a delay that can be overcome. They must find an alternate and bear the cost, unless the cost is exorbitant
What if the delay is due to the fact that the agency didn’t inspect at the agreed upon time?
Then not the contractors fault and is excusable
What if a hurricane came because it was the normal hurricane season, is this considered an excusable delay for the contractor?
Too bad.
What if the sub and contractor had a dispute that isn’t resolved thus the work was delayed?
Tough.
What if the subcontractor caused a delay that was not in the contractors control?
Excuse it
What if we order work to stop? Does contractor get compensated?
No, unless the delay is unreasonable.
What if a key employee dies? Is this considered excusable?
Nope.
If there is a defect and the contractor corrects, who pays for re inspection?
Contractor
Can an agency decide after the contract is signed to make their testing more stringent?
No, once the test performance level is established, it can’t be changed.
If inspection is at five locations, if they accept at three is that final acceptance?
No, must be accepted at ALL
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?
Agency
What is exception inspection?
Don’t inspect until a complaint is lodged
What kind of items are normally inspected after delivery?
Low value, MRO
When is payment made if term is final inspection?
Payment is only made after inspection done.
What is attribute and variable sampling?
Attribute is either the product meets or does not meet spec, variable is within a tolerance.
Which is a faster method of sampling, attribute or variable?
Attribute
What would be an example of Final Article Testing?
Military weapons
If delivery date has not passed, can you still refuse the contractors offer to correct a defect?
No. You must allow correction if delivery date has not passed.
Does agency have to allow substitutions?
No. Refuse based on Strict Compliance
Implied warranty - if you inspect and accept, then find a patent defect, can you reject based on implied warranty?
Not after acceptance if it’s a patent defect.
What are Cardinal Rules
Based on the plain language of the contract, what the meaning was at signing
What are secondary rules?
Whole instrument - whole document, overall contract
Express language rules - if there is a list, then the contract only applies to that list.
What are bilateral modifications?
Both parties need to execute to be binding
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?
Unilateral modification
The agency interprets the contract in a way that is more expensive than what the contractor thought. What kind of change is this?
Constructive change
If the very nature of the contract is changed because of many small changes, is the contract still binding?
The contractor can disregard the provisions of the contract in this case.
What is a claim and what is a dispute?
Claim is for money, dispute is when there is a disagreement.
What is the difference between receiving inspection and final inspection?
Receiving inspection is upon receipt and final inspection is performed when the contract is complete
Once you create the Performance Assessment Plan, is it final?
No. The PAP is a dynamic document that should be revised if needed during the contract.
How often should performance reviews be conducted?
At least quarterly.
If a supplier is developing a prototype to sample for the agency, does the supplier always bear all the costs for this?
No. The agency may participate in these costs.
Name the elements of a contract
Offer, acceptance, definiteness,
legal consideration, mutuality of obligation,
competent parties, legal purpose.
What rules do the courts use for interpretation of a contract?
Common law
List the conditions that must exist for an agency to be able to reject goods after acceptance.
Latent defects
Fraud
Gross negligence resulting in fraud
Warranties
If defects cannot be corrected or completed by a certain time, can the agency terminate the contract?
Yes.
What is it called if both parties mutually agree to terminate a contract?
Discharge by mutual assent
