How does conciliation differ from mediation in procurement disputes?

Question $27$ Answer

a$.$

It involves a binding decision by the conciliator

b$.$

The conciliator actively suggests solutions to the dispute

c$.$

It is a formal legal process

d$.$

It does not involve a third party

Question $28$

Payment disputes in procurement contracts typically occur due to:

Question $28$ Answer

a$.$

Timely payment by the buyer

b$.$

Early payment by the buyer

c$.$

Discrepancies between invoiced amounts and agreed terms

d$.$

Excess funds available

Question $29$

What is the primary goal of the claims and settlements process in procurement contracts?

Question $29$ Answer

a$.$

To renegotiate the entire contract

b$.$

To resolve disputes fairly and ensure contract compliance

c$.$

To extend the project timeline indefinitely

d$.$

To replace the supplier if a claim is filed

Question $30$

Which activity is NOT typically part of the contract closeout process?

Question $30$ Answer

a$.$

Final inspection and acceptance of deliverables

b$.$

Settlement of any remaining claims

c$.$

Drafting a new contract for the same project

d$.$

Assessment of supplier performance for future contracts

Question $31$

Which of the following is a critical step in the contract closeout process?

Question $31$ Answer

a$.$

Halting all communication with the supplier

b$.$

Increasing the scope of the project

c$.$

Reviewing all contract deliverables and ensuring acceptance

d$.$

Ignoring unresolved issues

Question $32$

Which of the following risks is associated with cost overruns in procurement contracts?

Question $32$ Answer

a$.$

Decreased project timeline

b$.$

Exceeding the allocated budget

c$.$

Improved project outcomes

d$.$

Enhanced supplier relationships

Question $33$

In a services contract, which party often evaluates the performance and deliverables to ensure they meet contractual terms?

Question $33$ Answer

a$.$

Consultant

b$.$

Contractor

c$.$

Client

d$.$

Supplier

Question $34$

To mitigate the risk of unclear contract terms, a contract manager should:

Question $34$ Answer

a$.$

Delegate contract writing to non$-$specialists

b$.$

Use vague language to maintain flexibility

c$.$

Avoid including detailed specifications

d$.$

Ensure all terms are clearly defined and understood by all parties

Question $35$

Which of the following is a common cause of contractual disputes in procurement and supplies undertakings?

Question $35$ Answer

a$.$

Excessive communication between parties

b$.$

Overestimation of supplier capacity

c$.$

Excessive regulatory compliance

d$.$

Misunderstandings due to ambiguous contract terms

Question $36$

What is the significance of "capacity" in the context of a valid contract?

Question $36$ Answer

a$.$

Ensuring both parties agree on the price

b$.$

Ensuring the contract is signed by witnesses

c$.$

Ensuring both parties have the legal ability to enter into a contract

d$.$

Ensuring both parties are willing to negotiate

Question $37$

When handling variations, why is it important to assess the impact on project cost and time?

Question $37$ Answer

a$.$

To avoid penalties and ensure project objectives are met

b$.$

To increase supplier payments

c$.$

To eliminate the need for further variations

d$.$

To decrease project quality

Question $38$

Which of the following is a common reason for variations in procurement contracts?

Question $38$ Answer

a$.$

Early completion of the project

b$.$

Supplier refusal to negotiate

c$.$

Unforeseen site conditions

d$.$

Fixed project scope

Question $39$

What is the first phase of the procurement contract negotiation process?

Question $39$ Answer

a$.$

Bargaining

b$.$

Preparation and planning

c$.$

Implementation

d$.$

Agreement

Question $40$

Which procurement contract management technique involves regularly comparing actual performance against planned performance?

Question $40$ Answer

a$.$

Contract negotiation

b$.$

Risk avoidance

c$.$

Performance monitoring and reporting

d$.$

Supplier relationship management

Question $41$

What is the legal consequence if one party fails to fulfill their obligations under a contract?

Question $41$ Answer

a$.$

The non$-$breaching party can seek legal remedies.

b$.$

The breaching party gets a warning.

c$.$

There are no legal consequences.

d$.$

The contract is automatically void.

Question $42$

In procurement contract preparation, which factor ensures that both parties understand their responsibilities?

Question $42$ Answer

a$.$

Detailed roles and responsibilities of each party

b$.$

Minimal documentation

c$.$

Broad and general contract terms

d$.$

High$-$level project objectives

Question $43$

What is a key outcome of the discussion and bargaining phase?

Question $43$ Answer

a$.$

Completing the project

b$.$

Establishing a rough draft of the contract

c$.$

Finalizing the payment schedule

d$.$

Agreeing on the contract terms and conditions

Question $44$

Which statement best describes litigation in the context of procurement disputes?

Question $44$ Answer

a$.$

It is a quick and informal process

b$.$

It always involves a third$-$party mediator

c$.$

It is a formal legal process where disputes are resolved in court

d$.$

It is the first choice for most procurement disputes