1.
You’ve been contracted by an industrial design firm to manage its contracting. Your client asks you to take over the negotiations for an important contract to design a new remote-control lighting system. You’ve narrowed it down to one seller, and now you’re working with the legal department at the buyer to negotiate the terms of the contract. Which of the following BEST describes your goal?
2.
Which of the following is NOT true about bidder conferences?
3.
You’re managing a project that might have to contract out work, and you’re comparing the relative advantages and disadvantages of finding a seller versus having your company do the work itself. Which process are you in?
4.
You’ve been contracted by a construction company to manage its contracting. It has a choice of either buying an excavator or renting it. To buy it, the company would have to pay $105,000. The price to rent the excavator is $5,000 per month, with a one-time service charge of $2,000. What’s the minimum number of months the company needs to use the excavator in order for it to make sense to buy it rather than rent?
5.
Which of the following BEST describes the “point of total assumption” for a contract?
6.
Which of the following contracts has the MOST risk for the buyer?
7.
You’re managing a project that is difficult to estimate, so you don’t have a good idea of when the project will end. Which of the following contracts is BEST?
8.
You’re using a qualified seller list. Which process are you in?
9.
You work for a seller that is bidding on a contract. Which type of contract has the MOST risk for your company?
10.
You’re trying to decide whether or not to contract out a construction job. To do it within your company, you will have to hire an engineer for $35,000 and pay a construction team $15,000 per week. A contractor quotes you a price of $19,000 per week, and your expert agrees that you won’t find a lower price than that. The job will take 16 weeks. What’s the BEST way to proceed?
