Contract Administration During Execution
5 minutes
5 Questions
Contract administration during execution covers the activities a construction project team performs after contract award. Its purpose is to ensure all parties fulfill their obligations, risks are controlled, and the project's commercial interests are protected. In the PMI-CP framework, it bridges contract formation and closeout by turning agreed terms into daily management practice. Core activities include: - Monitoring performance against scope, schedule, cost, quality and safety requirements. - Processing submittals, requests for information (RFIs) and approvals within contractual timeframes. - Administering payment applications, retention and progress valuations. - Keeping rigorous records, such as daily logs, meeting minutes, correspondence and photographs, which become evidence if disputes arise. Change management is central. Construction projects inevitably encounter design revisions, differing site conditions and owner-directed changes. Effective administrators follow the contract's change order procedures, evaluate cost and time impacts, issue timely notices and prevent unauthorized constructive changes. Claims management likewise requires understanding notice provisions, entitlement and quantification, often supported by schedule delay analysis. The delivery method shapes how administration works: - Design-bid-build: the owner or its engineer administers a fixed design with a lump-sum or unit-price contractor, so change orders are frequent. - Design-build: responsibility sits with one entity, shifting attention to performance criteria and design compliance. - Construction manager at risk: administration centers on guaranteed maximum price tracking, contingency use and open-book cost audits. - Integrated project delivery: the emphasis is on collaborative governance, shared risk-reward pools and joint decision-making. Other responsibilities include verifying insurance and bonds, managing subcontractor and supplier compliance, tracking warranties, enforcing quality inspections and monitoring permit and regulatory conditions. Communication protocols defined in the contract must be followed strictly, especially for formal notices, because missed deadlines can forfeit rights. Strong contract administration minimizes disputes, preserves relationships, supports timely payment and sets up a smooth closeout. PMI-CP candidates should understand both the procedural mechanics and the proactive, relationship-focused mindset that stops small issues from escalating into costly conflicts.
Contract Administration During Execution: A Complete Guide for the PMI-CP Exam
Introduction
Contract Administration During Execution is a core topic in the Contract Lifecycle and Delivery Methods domain of the PMI Construction Professional (PMI-CP) certification. Contracts are not "signed and forgotten" documents. They are living instruments that govern scope, cost, time, risk, quality and relationships throughout a construction project. This guide explains what contract administration during execution is, why it matters, how it works in practice, and how to approach exam questions on it.
1. What Is Contract Administration During Execution?
Contract administration during execution is the set of activities used to manage the contractual relationship between parties (owner, contractor, subcontractors, designers, suppliers) from contract award until contract closeout. It makes sure that:
- Each party performs its obligations as written in the contract.
- Changes, claims and disputes are handled through the agreed contractual procedures.
- Payments, documentation, notices and records follow contractual requirements.
- Risks allocated in the contract are monitored and managed.
- The project complies with legal, regulatory and contractual terms.
In PMI terminology, it lines up closely with the Control Procurements process. That process covers managing procurement relationships, monitoring contract performance, making changes and corrections as appropriate, and closing out contracts.
2. Why Is It Important?
- Protects contractual rights: If notice requirements, time bars and documentation rules are not followed, a party may lose its entitlement to time extensions or extra payment.
- Controls cost and schedule: Disciplined change management prevents scope creep and unapproved work.
- Reduces disputes: Clear records and timely communication resolve issues before they escalate into claims, arbitration or litigation.
- Ensures quality and compliance: Inspections, submittals, testing and approvals confirm the work meets specifications.
- Maintains relationships: Fair, transparent administration builds trust between owner and contractor. This is especially important in collaborative delivery methods such as IPD, alliancing or Design-Build.
- Provides an audit trail: Good records support payment, claims defense, lessons learned and final closeout.
3. Key Components and How It Works
3.1 Contract Baseline and Kick-off
- Hold a contract kick-off or pre-construction meeting to align on roles, communication protocols, submittal procedures, payment cycles and reporting.
- Establish the baselines for scope, schedule and cost.
- Confirm key personnel, authority levels and who can approve changes. Only authorized persons can bind a party contractually.
- Create a contract obligations register or responsibility matrix. It lists deliverables, deadlines, notice periods and reporting duties.
3.2 Performance Monitoring
- Track progress against the baseline schedule. Common tools are earned value, look-ahead schedules and progress reports.
- Monitor quality through inspections, testing, non-conformance reports (NCRs) and punch lists.
- Review safety, environmental and regulatory compliance.
- Conduct regular progress meetings with formal minutes.
- Evaluate contractor and supplier performance against KPIs.
3.3 Communication and Documentation
- Use formal correspondence channels as specified in the contract. Examples include letters, transmittals and Common Data Environment platforms.
- Requests for Information (RFIs) clarify design or contract ambiguity.
- Submittals and shop drawings are reviewed and approved per specification timeframes.
- Daily logs, site diaries, photos and weather records create contemporaneous evidence.
- Notices: Contracts usually require written notice within a fixed period, for example 7, 14 or 28 days, of events that may lead to a claim. Missing a notice period can bar a claim.
3.4 Change Management
- Change Order (CO): A formal, signed amendment to scope, price and/or time agreed by both parties.
- Change Directive / Construction Change Directive (CCD): The owner directs a change before price and time are agreed, so work can proceed. Pricing is resolved later.
- Field Order / Minor Change: A minor change with no cost or time impact.
- Constructive Change: An informal change caused by owner actions or directions, such as over-inspection, defective specifications or acceleration demands. It is not documented as a formal change but may entitle the contractor to compensation.
- Typical process: identify the change, give notice, request a proposal, evaluate the impact on cost, schedule and risk, negotiate, approve through authorized signatories, update baselines, then communicate.
- Changes should be assessed through the project's integrated change control process.
3.5 Payment Administration
- Progress payments (applications for payment, interim payment certificates) are based on schedule of values, measured quantities, milestones or cost-reimbursable records.
- Retainage or retention is withheld to secure completion and defect correction.
- Payment terms and timelines are often influenced by prompt payment laws.
- Back-charges, liquidated damages and set-offs are applied in line with contract clauses.
- Lien waivers and supporting documentation are collected.
3.6 Claims Management
- A claim is a demand by one party for additional time, money or other relief under the contract.
- Common causes include differing site conditions, owner-caused delays, design errors, changes in law, force majeure and suspension.
- Claims need entitlement (contractual basis), causation and quantum (quantified impact).
- Schedule analysis supports delay claims. Methods include windows analysis, time impact analysis and as-planned vs. as-built.
- Delay types:
- Excusable compensable: time plus money.
- Excusable non-compensable: time only, for example severe weather or force majeure.
- Non-excusable: contractor-caused, so liquidated damages may apply.
- Concurrent delays: often time only, depending on the contract.
3.7 Dispute Resolution
Disputes move through an escalation ladder:
1. Negotiation at project level
2. Escalation to senior management
3. Mediation
4. Dispute Review Board / Dispute Adjudication Board (DRB/DAB)
5. Adjudication (where statutory)
6. Arbitration
7. Litigation
PMI favors negotiation as the preferred and first method. Alternative Dispute Resolution (ADR) is preferred over litigation. Parties usually must continue performing work while disputes are resolved, if the contract requires it.
3.8 Risk and Insurance Administration
- Monitor the risks allocated in the contract and update the risk register.
- Verify that insurance certificates and bonds (performance, payment) remain valid.
- Manage indemnities and warranties.
3.9 Subcontractor and Supplier Management
- Flow-down clauses pass relevant prime contract obligations to subcontractors.
- Monitor subcontractor performance, submittals, payments and compliance.
- Privity of contract means the owner usually has no direct contract with subcontractors.
3.10 Suspension and Termination
- Suspension: A temporary stop of work, often with time and cost entitlement if not caused by the contractor.
- Termination for Convenience: The owner ends the contract without fault. The contractor is typically paid for work done plus reasonable costs, but not anticipated profit on unperformed work, depending on the contract.
- Termination for Cause/Default: Due to material breach. Notice and cure periods usually apply first.
3.11 Transition to Closeout
- Substantial completion, punch list completion, final inspections and commissioning.
- As-built drawings, O&M manuals, warranties and training.
- Final payment, release of retention and final lien releases.
- Contract closeout, procurement audit and lessons learned.
4. Influence of Delivery Methods on Contract Administration
- Design-Bid-Build (DBB): Separate design and construction contracts. The owner carries design risk, so RFIs and change orders due to design issues are common, and administration can be adversarial.
- Design-Build (DB): Single point of responsibility. Fewer design-related claims against the owner. The focus shifts to verifying performance requirements.
- CM at Risk (CMAR): The Guaranteed Maximum Price (GMP) requires tracking of contingency, allowances and shared savings.
- Integrated Project Delivery (IPD): Multi-party agreement with shared risk and reward. Administration is collaborative and decisions are made jointly.
5. Influence of Contract Types
- Fixed Price / Lump Sum: Focus on scope control and change orders. The contractor bears cost risk.
- Cost-Reimbursable (Cost Plus): Focus on auditing costs, verifying allowable costs and monitoring efficiency. The owner bears cost risk.
- Unit Price / Remeasurement: Focus on accurate quantity measurement.
- Time and Materials: Monitor hours, rates and not-to-exceed limits.
- GMP: Track costs against the cap, contingency drawdown and savings sharing.
6. Roles and Responsibilities
- Project Manager: Manages overall delivery and coordinates contract issues. May not have authority to sign contract changes.
- Contract Administrator / Procurement Manager: Holds contractual authority, interprets terms and maintains records.
- Owner's Representative / Engineer / Architect: Certifies payments, reviews submittals, issues instructions and may make determinations.
- Legal Counsel: Advises on interpretation, claims and disputes.
7. Common Tools and Techniques
- Contract change control system
- Performance reviews and inspections/audits
- Earned value analysis
- Payment systems
- Claims administration
- Records management system and Common Data Environment (CDE)
- Schedule analysis tools
- Trend analysis and KPIs
Exam Tips: Answering Questions on Contract Administration During Execution
Tip 1: The contract is the governing document. When a question asks what the project manager should do first, the answer is often to review the contract or check the relevant terms and conditions. Do not act on assumptions.
Tip 2: Follow the formal process. Choose answers that use the contract's formal procedures. Examples: submit an RFI, issue written notice, raise a change request, follow the change control process. Avoid answers that approve changes verbally or let work proceed without documentation.
Tip 3: Negotiation first for disputes. PMI's preferred dispute resolution is negotiation between the parties, followed by ADR such as mediation and arbitration. Litigation is the last resort.
Tip 4: Respect authority levels. Only authorized individuals can change contracts. If a site supervisor or engineer directs extra work without authority, treat it as a potential constructive change. The correct response is usually to notify and document it, not to ignore it or blindly comply.
Tip 5: Notice and time bars matter. Questions often describe a contractor who discovers a differing site condition or delay. The best answer usually involves giving timely written notice as required by the contract and keeping contemporaneous records.
Tip 6: Keep working during disputes. Unless the contract states otherwise, the contractor should continue performance while a dispute or change is being resolved. Stopping work is rarely the right answer.
Tip 7: Document everything. Answers involving daily logs, meeting minutes, photographs and written confirmation of verbal instructions are usually correct. Good documentation supports claims and avoids disputes.
Tip 8: Know the difference between a Change Order and a Change Directive. Agreement on price and time means a change order. A unilateral owner instruction with pricing to follow means a change directive.
Tip 9: Link the contract type to the right control focus. Fixed price means scope and change control. Cost-reimbursable means cost audits and verifying allowable costs. Unit price means quantity measurement. GMP means contingency and cost cap tracking.
Tip 10: Classify delays correctly. Know which delays give time only, time plus money, or neither, and when liquidated damages apply.
Tip 11: Watch for keywords.
- "Contractor claims extra payment" points to verifying entitlement under the contract and reviewing documentation.
- "Disagreement on change pricing" points to negotiation, a possible change directive, and continuing work.
- "Seller is underperforming" points to a performance review, then formal written notice or a cure notice, before termination.
- "Scope change requested by owner" points to evaluating the impact and following integrated change control.
Tip 12: Prefer proactive, collaborative answers. PMI-CP emphasizes stakeholder engagement and collaboration. Pick answers that solve problems early, communicate openly and protect the relationship while still protecting contractual rights.
Tip 13: Eliminate extreme answers. Options such as immediately terminating the contract, filing a lawsuit, ignoring the issue or making unilateral changes are usually wrong. Choose the measured, process-driven option.
Tip 14: Remember privity of contract. The owner generally deals with the prime contractor, not directly with subcontractors. Issues with subcontractors go through the prime contractor.
Tip 15: Update baselines and documents after approved changes. After a change is approved, update the scope, schedule, cost baselines and contract documents, and communicate the change to stakeholders.
Sample Question Walkthrough
Scenario: During excavation, the contractor encounters unexpected rock not shown in the geotechnical report. The owner's site representative verbally tells the contractor to continue and "sort out costs later." What should the contractor do FIRST?
A. Stop all work until a change order is signed
B. Continue work and submit an invoice at month end
C. Provide written notice of a differing site condition per the contract and document the conditions
D. File a claim with arbitration
Answer: C. Timely written notice and documentation protect entitlement and follow contractual procedure. A is too extreme, B skips the formal process, and D escalates too early.
Summary
Contract administration during execution means managing the contract actively and disciplined-ly so that obligations are met, changes are controlled, payments are fair, risks are monitored and disputes are minimized. For the exam, always ask three questions:
1. What does the contract say?
2. What is the formal process?
3. What is the most collaborative, documented and proactive action?
If you consistently pick answers that respect the contract, follow formal procedures, document thoroughly and favor negotiation, you will perform well on this topic.
Contract Administration During Execution is a core topic in the Contract Lifecycle and Delivery Methods domain of the PMI Construction Professional (PMI-CP) certification. Contracts are not "signed and forgotten" documents. They are living instruments that govern scope, cost, time, risk, quality and relationships throughout a construction project. This guide explains what contract administration during execution is, why it matters, how it works in practice, and how to approach exam questions on it.
1. What Is Contract Administration During Execution?
Contract administration during execution is the set of activities used to manage the contractual relationship between parties (owner, contractor, subcontractors, designers, suppliers) from contract award until contract closeout. It makes sure that:
- Each party performs its obligations as written in the contract.
- Changes, claims and disputes are handled through the agreed contractual procedures.
- Payments, documentation, notices and records follow contractual requirements.
- Risks allocated in the contract are monitored and managed.
- The project complies with legal, regulatory and contractual terms.
In PMI terminology, it lines up closely with the Control Procurements process. That process covers managing procurement relationships, monitoring contract performance, making changes and corrections as appropriate, and closing out contracts.
2. Why Is It Important?
- Protects contractual rights: If notice requirements, time bars and documentation rules are not followed, a party may lose its entitlement to time extensions or extra payment.
- Controls cost and schedule: Disciplined change management prevents scope creep and unapproved work.
- Reduces disputes: Clear records and timely communication resolve issues before they escalate into claims, arbitration or litigation.
- Ensures quality and compliance: Inspections, submittals, testing and approvals confirm the work meets specifications.
- Maintains relationships: Fair, transparent administration builds trust between owner and contractor. This is especially important in collaborative delivery methods such as IPD, alliancing or Design-Build.
- Provides an audit trail: Good records support payment, claims defense, lessons learned and final closeout.
3. Key Components and How It Works
3.1 Contract Baseline and Kick-off
- Hold a contract kick-off or pre-construction meeting to align on roles, communication protocols, submittal procedures, payment cycles and reporting.
- Establish the baselines for scope, schedule and cost.
- Confirm key personnel, authority levels and who can approve changes. Only authorized persons can bind a party contractually.
- Create a contract obligations register or responsibility matrix. It lists deliverables, deadlines, notice periods and reporting duties.
3.2 Performance Monitoring
- Track progress against the baseline schedule. Common tools are earned value, look-ahead schedules and progress reports.
- Monitor quality through inspections, testing, non-conformance reports (NCRs) and punch lists.
- Review safety, environmental and regulatory compliance.
- Conduct regular progress meetings with formal minutes.
- Evaluate contractor and supplier performance against KPIs.
3.3 Communication and Documentation
- Use formal correspondence channels as specified in the contract. Examples include letters, transmittals and Common Data Environment platforms.
- Requests for Information (RFIs) clarify design or contract ambiguity.
- Submittals and shop drawings are reviewed and approved per specification timeframes.
- Daily logs, site diaries, photos and weather records create contemporaneous evidence.
- Notices: Contracts usually require written notice within a fixed period, for example 7, 14 or 28 days, of events that may lead to a claim. Missing a notice period can bar a claim.
3.4 Change Management
- Change Order (CO): A formal, signed amendment to scope, price and/or time agreed by both parties.
- Change Directive / Construction Change Directive (CCD): The owner directs a change before price and time are agreed, so work can proceed. Pricing is resolved later.
- Field Order / Minor Change: A minor change with no cost or time impact.
- Constructive Change: An informal change caused by owner actions or directions, such as over-inspection, defective specifications or acceleration demands. It is not documented as a formal change but may entitle the contractor to compensation.
- Typical process: identify the change, give notice, request a proposal, evaluate the impact on cost, schedule and risk, negotiate, approve through authorized signatories, update baselines, then communicate.
- Changes should be assessed through the project's integrated change control process.
3.5 Payment Administration
- Progress payments (applications for payment, interim payment certificates) are based on schedule of values, measured quantities, milestones or cost-reimbursable records.
- Retainage or retention is withheld to secure completion and defect correction.
- Payment terms and timelines are often influenced by prompt payment laws.
- Back-charges, liquidated damages and set-offs are applied in line with contract clauses.
- Lien waivers and supporting documentation are collected.
3.6 Claims Management
- A claim is a demand by one party for additional time, money or other relief under the contract.
- Common causes include differing site conditions, owner-caused delays, design errors, changes in law, force majeure and suspension.
- Claims need entitlement (contractual basis), causation and quantum (quantified impact).
- Schedule analysis supports delay claims. Methods include windows analysis, time impact analysis and as-planned vs. as-built.
- Delay types:
- Excusable compensable: time plus money.
- Excusable non-compensable: time only, for example severe weather or force majeure.
- Non-excusable: contractor-caused, so liquidated damages may apply.
- Concurrent delays: often time only, depending on the contract.
3.7 Dispute Resolution
Disputes move through an escalation ladder:
1. Negotiation at project level
2. Escalation to senior management
3. Mediation
4. Dispute Review Board / Dispute Adjudication Board (DRB/DAB)
5. Adjudication (where statutory)
6. Arbitration
7. Litigation
PMI favors negotiation as the preferred and first method. Alternative Dispute Resolution (ADR) is preferred over litigation. Parties usually must continue performing work while disputes are resolved, if the contract requires it.
3.8 Risk and Insurance Administration
- Monitor the risks allocated in the contract and update the risk register.
- Verify that insurance certificates and bonds (performance, payment) remain valid.
- Manage indemnities and warranties.
3.9 Subcontractor and Supplier Management
- Flow-down clauses pass relevant prime contract obligations to subcontractors.
- Monitor subcontractor performance, submittals, payments and compliance.
- Privity of contract means the owner usually has no direct contract with subcontractors.
3.10 Suspension and Termination
- Suspension: A temporary stop of work, often with time and cost entitlement if not caused by the contractor.
- Termination for Convenience: The owner ends the contract without fault. The contractor is typically paid for work done plus reasonable costs, but not anticipated profit on unperformed work, depending on the contract.
- Termination for Cause/Default: Due to material breach. Notice and cure periods usually apply first.
3.11 Transition to Closeout
- Substantial completion, punch list completion, final inspections and commissioning.
- As-built drawings, O&M manuals, warranties and training.
- Final payment, release of retention and final lien releases.
- Contract closeout, procurement audit and lessons learned.
4. Influence of Delivery Methods on Contract Administration
- Design-Bid-Build (DBB): Separate design and construction contracts. The owner carries design risk, so RFIs and change orders due to design issues are common, and administration can be adversarial.
- Design-Build (DB): Single point of responsibility. Fewer design-related claims against the owner. The focus shifts to verifying performance requirements.
- CM at Risk (CMAR): The Guaranteed Maximum Price (GMP) requires tracking of contingency, allowances and shared savings.
- Integrated Project Delivery (IPD): Multi-party agreement with shared risk and reward. Administration is collaborative and decisions are made jointly.
5. Influence of Contract Types
- Fixed Price / Lump Sum: Focus on scope control and change orders. The contractor bears cost risk.
- Cost-Reimbursable (Cost Plus): Focus on auditing costs, verifying allowable costs and monitoring efficiency. The owner bears cost risk.
- Unit Price / Remeasurement: Focus on accurate quantity measurement.
- Time and Materials: Monitor hours, rates and not-to-exceed limits.
- GMP: Track costs against the cap, contingency drawdown and savings sharing.
6. Roles and Responsibilities
- Project Manager: Manages overall delivery and coordinates contract issues. May not have authority to sign contract changes.
- Contract Administrator / Procurement Manager: Holds contractual authority, interprets terms and maintains records.
- Owner's Representative / Engineer / Architect: Certifies payments, reviews submittals, issues instructions and may make determinations.
- Legal Counsel: Advises on interpretation, claims and disputes.
7. Common Tools and Techniques
- Contract change control system
- Performance reviews and inspections/audits
- Earned value analysis
- Payment systems
- Claims administration
- Records management system and Common Data Environment (CDE)
- Schedule analysis tools
- Trend analysis and KPIs
Exam Tips: Answering Questions on Contract Administration During Execution
Tip 1: The contract is the governing document. When a question asks what the project manager should do first, the answer is often to review the contract or check the relevant terms and conditions. Do not act on assumptions.
Tip 2: Follow the formal process. Choose answers that use the contract's formal procedures. Examples: submit an RFI, issue written notice, raise a change request, follow the change control process. Avoid answers that approve changes verbally or let work proceed without documentation.
Tip 3: Negotiation first for disputes. PMI's preferred dispute resolution is negotiation between the parties, followed by ADR such as mediation and arbitration. Litigation is the last resort.
Tip 4: Respect authority levels. Only authorized individuals can change contracts. If a site supervisor or engineer directs extra work without authority, treat it as a potential constructive change. The correct response is usually to notify and document it, not to ignore it or blindly comply.
Tip 5: Notice and time bars matter. Questions often describe a contractor who discovers a differing site condition or delay. The best answer usually involves giving timely written notice as required by the contract and keeping contemporaneous records.
Tip 6: Keep working during disputes. Unless the contract states otherwise, the contractor should continue performance while a dispute or change is being resolved. Stopping work is rarely the right answer.
Tip 7: Document everything. Answers involving daily logs, meeting minutes, photographs and written confirmation of verbal instructions are usually correct. Good documentation supports claims and avoids disputes.
Tip 8: Know the difference between a Change Order and a Change Directive. Agreement on price and time means a change order. A unilateral owner instruction with pricing to follow means a change directive.
Tip 9: Link the contract type to the right control focus. Fixed price means scope and change control. Cost-reimbursable means cost audits and verifying allowable costs. Unit price means quantity measurement. GMP means contingency and cost cap tracking.
Tip 10: Classify delays correctly. Know which delays give time only, time plus money, or neither, and when liquidated damages apply.
Tip 11: Watch for keywords.
- "Contractor claims extra payment" points to verifying entitlement under the contract and reviewing documentation.
- "Disagreement on change pricing" points to negotiation, a possible change directive, and continuing work.
- "Seller is underperforming" points to a performance review, then formal written notice or a cure notice, before termination.
- "Scope change requested by owner" points to evaluating the impact and following integrated change control.
Tip 12: Prefer proactive, collaborative answers. PMI-CP emphasizes stakeholder engagement and collaboration. Pick answers that solve problems early, communicate openly and protect the relationship while still protecting contractual rights.
Tip 13: Eliminate extreme answers. Options such as immediately terminating the contract, filing a lawsuit, ignoring the issue or making unilateral changes are usually wrong. Choose the measured, process-driven option.
Tip 14: Remember privity of contract. The owner generally deals with the prime contractor, not directly with subcontractors. Issues with subcontractors go through the prime contractor.
Tip 15: Update baselines and documents after approved changes. After a change is approved, update the scope, schedule, cost baselines and contract documents, and communicate the change to stakeholders.
Sample Question Walkthrough
Scenario: During excavation, the contractor encounters unexpected rock not shown in the geotechnical report. The owner's site representative verbally tells the contractor to continue and "sort out costs later." What should the contractor do FIRST?
A. Stop all work until a change order is signed
B. Continue work and submit an invoice at month end
C. Provide written notice of a differing site condition per the contract and document the conditions
D. File a claim with arbitration
Answer: C. Timely written notice and documentation protect entitlement and follow contractual procedure. A is too extreme, B skips the formal process, and D escalates too early.
Summary
Contract administration during execution means managing the contract actively and disciplined-ly so that obligations are met, changes are controlled, payments are fair, risks are monitored and disputes are minimized. For the exam, always ask three questions:
1. What does the contract say?
2. What is the formal process?
3. What is the most collaborative, documented and proactive action?
If you consistently pick answers that respect the contract, follow formal procedures, document thoroughly and favor negotiation, you will perform well on this topic.
Test mode:
PMI-CP - Contract Administration During Execution Example Questions
Test your knowledge of Contract Administration During Execution
Question 1
Some standard forms of contract include an early warning provision. During execution, what is the main function of an early warning notice?
Question 2
A contract states that only the owner's representative may instruct changes to the works, and only in writing. On site, the designer's inspector verbally tells the contractor to switch to a higher-grade façade panel. The contractor then asks the owner's representative whether to proceed. No one has yet assessed the upgrade against the budget or the project's outcomes. What should the owner's representative do?
Question 3
In contract administration during execution, what does a termination for convenience clause typically permit the owner to do?
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More Contract Administration During Execution questions
14 questions (total)
Other Contract Lifecycle and Delivery Methods concepts
Advising Leadership on Delivery Method SelectionAlliancing and Collaborative ContractingClauses on Changes, Delays and Extensions of TimeCommunication Gaps from Contractual ArrangementsConstruction Management at Risk and Agency CMContract Award and MobilizationContract Close-Out and Final AccountDesign-Bid-Build DeliveryDesign-Build and EPC DeliveryGuaranteed Maximum Price and Target CostKey Contract Clauses: Scope, Time and PaymentLean Integrated Project DeliveryLiquidated Damages, Indemnity and Liability ClausesLump Sum, Unit Price and Cost-Reimbursable PricingMulti-Party Agreements and Shared Risk and RewardProcurement and Tendering StrategyPublic-Private Partnerships and ConcessionsRisk Apportionment Across Delivery MethodsRoles and Responsibilities by Contract StructureStandard Forms of Construction ContractSubcontracting and Supply Chain ContractsSupporting Leadership Through the Contract LifecycleTermination, Suspension and Force MajeureThe Contract Lifecycle from Discovery to Close-OutThe Integrated Form of Agreement (IFOA)