Exam 14: Contract Management

_____ involves spending more time in the initial contracting stages to fully understand stakeholder requirements, expectations, and repeated communication of expectations, to gain a full understanding of elements.

In [the] _____, a court refers a lawsuit pending between the parties to a private, neutral party who conducts a "trial" as though it were conducted in a real court.

A buyer should work to determine an acceptable initial price because over the course of a long-term contract, as a price adjustment mechanism (if used) will apply the initial price as the base for future adjustments.

Firm fixed price contracts are generally applicable when the goods or services procured are expensive, complex, and important to the purchasing party or when there is a high degree of uncertainty regarding labor and material costs.

The _____ clause of a contract specifies whether the buyer, if he or she becomes aware of any technology or cost improvements of other products in the market, he or she can share this information with the supplier and how the supplier should act on this information.

There is an automatic determination of copyright ownership unless the consultant and the client company execute an agreement specifically assigning the copyright to the client company.

The _____ clause in a contract establishes where bills, invoices, notices, and other documents should be sent, as well as the key contact person at the buying and supplying companies to whom all questions and issues concerning the relationship.

The _____ clause in a contract stipulates that any benefits attributed to a third party (other than the buyer or supplier) identified in the contract must be enforced.

To be successful, a good long-term contract needs to only consider the needs of the buyer.

All of the following are important factors to consider when negotiating with a supplier over contract type except _____.

The _____ contract is generally used in plant and equipment maintenance agreements, where the supplier cannot determine accurate costs prior to the repair service.

The use of [a/an] _____, or third party, to help settle contractual disputes is the fastest-growing method of conflict resolution among contracting parties, both in the United States and overseas.

Generally speaking, the more complex the nature of the contract and the greater the dollar amounts involved, the more likely it is that a future dispute over interpretation of the terms and conditions will occur.

To be most effective, cost-based contracts should include cost productivity improvements in order to drive continuous cost reduction over the life of the contract.

In the _____ approach to a systems supplier's level of service, the outsource service supplier takes on only two or three small functions from the client, using a stepping stone approach.

In a systems outsourcing situation, acceptance test criteria can only be determined after issuing the contract as actual operating conditions cannot be specified until the system is fully operational.

It is always a good idea to double-check all attachments to the contract, because many of the technical details are included there.

Technical sections of the contract are typically the least source of misinterpretation of terms and conditions.

The _____ clause of a contract states whether the buyer can expect to receive preferential status over the supplier's other customers.

In the _____ approach to a systems supplier's level of service, the service provider and the client company share resources and operational control over the outsourced service.