Contract Management

This Beginner Level Test covers various aspects of Contract Management, assessing a candidate's knowledge, particularly in roles related to procurement and legal responsibilities. 

The test examines basic understanding of the purpose and elements of a procurement contract, such as binding buyer and seller, protecting interests, and covering both goods and services. Questions also explore who is responsible for contract management, emphasising the collective responsibility underpinning legal, procurement, and project management departments. The test assesses knowledge of typical contract content, such as performance expectations, termination clauses, confidentiality, and force majeure.

Candidates are tested on various stages of contract management, from drafting and negotiation to administration and termination, highlighting the ongoing nature of contract management even after signing. Questions examine specific clauses like indemnification, liquidated damages, performance evaluations, warranties, and dispute resolution, indicating the importance of understanding these terms for effective contract management. 

The test addresses the legal binding nature of contracts, the necessity of written agreements, and compliance with laws and regulations, highlighting the legal intricacies involved in contract management. Candidates are questioned on the strategic objectives of contract management, like minimising risk and maximising value, and the administrative tasks such as handling RFPs and using contract management systems. The test also covers risk factors in contract management, like delivery delays and legal disputes, alongside preferred methods for resolving contract disputes, such as mediation over litigation.