Certified Contract Management Associate Practice Test

The job task of planning for contract performance delivery includes which of the following?

1. Managing Risk and Costs

2. Control of Owner-furnished property

3. Monitoring subcontractor disagreements

4. Issuing subcontracts

The correct answer is: Managing Risk and Costs

Planning for contract performance delivery is a fundamental process in contract management that encompasses several essential elements to ensure that contracts are executed effectively and efficiently. This task primarily focuses on identifying, assessing, and mitigating risks associated with the performance of the contract while also managing costs. Managing risk and costs involves taking proactive steps to foresee potential challenges that could arise during the execution of the contract, such as delays, budget overruns, or compliance issues. By addressing these risks early on and implementing controls, organizations can maintain the integrity of the contract and ensure that deliverables are met within the agreed parameters. This aspect of planning is critical because it lays the groundwork for other activities throughout the contract life cycle. Effective risk and cost management not only contributes to the success of the project but also protects the interests of the parties involved by ensuring adherence to contractual obligations and minimizing unforeseen financial impacts. In contrast to this, the other options—control of owner-furnished property, monitoring subcontractor disagreements, and issuing subcontracts—while relevant to contract management, are more focused on specific operational aspects rather than the overarching planning for performance delivery. These tasks are often contingent upon the broader planning established through risk and cost management.