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CCCM Contract Management Exam Study Guide & Practice Questions 2013 Edition 
 

Covering the Commercial Knowledge module.


According to the NCMA, A Certified Commercial Contracts Manager (CCCM) certification demonstrates that one is knowledgeable about the practice of contracts management in the commercial environment.

In the new CCCM exam syllabus, General Business Knowledge is no longer tested. HOWERVER, taking into account the fact that knowledge on the general business environment would help a lot in your exam study effort (even though the GB module is no longer required), GB related materials are retained in this study guide. Note that the CCCM exam does not cover FAR. Therefore, you may ignore the FAR section altogether. The focus is more on the UCC Articles 1, 2 and 2a and some general commercial contracting elements. If you are new to contract management, use this study guide TOGETHER WITH other sources of information to prepare for the exam. The exam is easy only if you are experienced in contract management. If you are not, then lots of readings would have to be done.

As of the time of this writing, CCCM is in a format of 150 questions per exam. The 110 question format is no longer in use. In this study product we have both contracting-specific and business knowledge sections. We label those business knowledge sections as “Foundation Knowledge” sections. These sections have information that is not on the technical aspect of contracting but is still relevant for day-to-day contract admin works.

Our CCCM Study Guide goes the expert-advice way. Instead of just giving you the hard facts, we also give you information that covers the best practices. With these information, you will always be able to make the most appropriate expert judgment in the exams.

Instead of following a rigid topic flow, we give you the freedom to review topics in any order you like. Taking into account the fact that knowledge on the general business environment would help a lot in your exam study effort (even though the GB module is no longer required), GB related materials are retained in this study guide. For the best possible exam performance, you may want to use our study guide together with other study resources. Do your readings, and give yourself enough time to digest what you have read. Link the theories and concepts to your real world contract management experience, then you will do fine for sure :) 

 

Click HERE to review the TOC of the book.

 

CCCM Exam Tips


The actual exam questions were written to be tricky. However, if you are careful enough, the process of isolation would work pretty well in eliminating the wrong choices.


Take a look at the commercial knowledge question below:

An offer, in order to give rise to a valid contract, must

be timely accepted by the intended offeree
be stated orally
be specifically permitted by statute or regulation
be limited as to form of acceptance

As you can see:

be stated orally <-- this is obviously wrong
be specifically permitted by statute or regulation <-- "be specifically permitted" does not mean "be legal". A statute cannot "specifically" permit an offer.
be limited as to form of acceptance <-- the offerer may choose to limit the form of acceptance, but the question does not say so.

Here comes another one:

In contract disputes, a claimant is:

a person who has a demand made against them
a person who asserts a right or demand
a person who countersues
a third party who makes a demand against the seller


It is quite obvious that the third and the fourth choices are surely wrong. The first choice says "who has a demand made against them". The "them" here refers to the disputes. A claimant does not have a demand against the disputes. He does have one against the other party to the contract.

 

If you understand the logic behind the CCCM questions & choices, you will easily get the wrong answers removed!
 

SAMPLE TEXT on drafting commercial contract


Drafting your contract

The court generally holds the party putting the contract in written form responsible for devising a clear and understandable contract. If the contract is found not sufficiently clear, it is (usually) construed against the party who wrote the contract. Therefore, you must be very careful when drafting your contract.


Setting the order of precedence

When there are multiple different documents involved, you want to have something like this established:

“The provisions of this contract shall govern the relationship of XXX and YYY. In the event of conflicts or inconsistencies between this contract and its exhibits or attachments, such conflicts or inconsistencies shall be resolved by reference to the documents in the following order of priority: first, ; second, ; and third, ;....”


Contract exhibits

If your contract results from an RFP sent to your vendors and there are written clarifications by the vendors, be sure to review these documents to determine if it is appropriate to include them as exhibits to the contract. You want to ensure they will fit into the provision of your contract. You want your version to have precedence in any case.


Time clause

The "time is of the essence" clause should be employed where time is particularly important, that failure to meet specified deadlines is significant enough for terminating the contract for default.


Rewards

The Fixed Price option specifies a firm, fixed price (usually as a lump sum) which is due to the vendor upon successful completion of contracted work. How much it costs the vendor to perform would not be a relevant matter to consider.

The Time and Materials/hourly labor option is a cost-type contract that requires you to pay at specified rates for labor and/or materials and makes it clear that the vendor must complete performance within the ceiling amount specified. For additional protection, you may say something like this:

"Prices shall remain firm through [date]. The Vendor may seek a price increase, not to exceed __% of the then current price, in any succeeding period, by submitting detailed written justification to ..."

For larger contracts, it may be advisable to set up milestones/deliverables, in such a way that the vendor must reach a pre-defined delivery stage in order to receive payment. The milestones must be clearly measurable though.

In any case you want to make it clear that payments pursuant to the contract shall be made as earned unless advanced payment is allowed. Advance payments should only be allowed in limited circumstances.


Incorrect payments

People do make mistakes. You want to protect against careless payment mistakes by saying something like this:

"Incorrect payments to the vendor due to omission, error, fraud, or defalcation shall be recovered from the vendor by deduction from subsequent payments under this contract or other contracts with the vendor."


Legal Authority

To ensure you are dealing with the legally right people, you should have a Legal Authority clause at the end of the contract, saying:

“The Vendor warrants that it possesses the legal authority to enter into this contract and that it has taken all actions required by its procedures, by-laws, and/or applicable law to exercise that authority, and to lawfully authorize its undersigned signatory to execute this contract and to bind the Vendor to its terms. The person(s) executing this contract on behalf of the Vendor warrant(s) that such person(s) have full authorization to execute this contract.’

If the signatory doesn't have the authority, the above provisions would allow you to hold the person signing the contract personally liable for breach of his or her assurances to the contrary.
 

 

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SAMPLE TEXT on Contract compensation and financing

Talking about the forms of agreement in regards to compensation, a lump sum compensation is a remuneration which establishes a specific total amount payable for the performance of the contractual work. Lump sum compensation would be appropriate if you can establish with high precision the Scope, Character, Complexity and Duration of the work and that just compensation for the contractual work can be evaluated in advance with reasonable accuracy.

Cost plus net fee compensation is a form of reimbursement very popular for consultant contracts. It is basically a combination of a consultant’s actual allowable costs and the net fee as set forth in the agreement. You would want to go for this when the extent of the work cannot be well defined. Payment would be based on the actual allowable costs incurred and the completion percentage times the applicable net fee.

Rate of pay compensation is a type of remuneration which establishes a specific rate of pay in the agreement applicable for each classification of employee. You would want to use this if the indirect costs and profit would be tied directly to extent of services utilized. For this to work the contractual rates for each classification must be carefully defined.

A unit of work compensation is a form of remuneration which establishes a specific unit amount payable for each unit of services performed. It is doable when the unit cost can be determined in advance with reasonable accuracy but the number of units is indefinite. You may especially find it useful for items of additional work.

NOTE: Generally, lump sum type agreements are way more easily administered but are relatively inflexible when dealing with changes in the work. Actual cost agreements would be capable of providing more flexibility but would require relatively more administrative effort.

 

 

To order this book in printed format:

CCCM Contract Management Exam Study Guide & Practice Questions 2013: Building Your Contract Management Exam Readiness

USD$69

ISBN/EAN13: 1479310328/978-1479310326
Binding Type: US Trade Paper
Trim Size: 8" x 10"
Language: English
Color: Black and White
 


Order link: https://www.createspace.com/Customer/EStore.do?id=3995300 

 

As an independent content developer, we are NOT affiliated with the NCMA.

 


You may also find this classnotes useful for entry level course on commercial contract:

 

Intro to Commercial Contract Study Notes, Review Questions and Classroom Discussion Topics

ISBN-13: 978-1484063965
ISBN-10: 1484063961
 


What is the format of this ClassNotes product?

Order link: https://www.createspace.com/Customer/EStore.do?4237219

 

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