Certified Contract Management Associate Practice Test

What is a primary function of contract administration?

1. Monitoring contract compliance

2. Developing contract proposals

3. Conducting pre-sale activities

4. Planning contract negotiations

The correct answer is: Monitoring contract compliance

Monitoring contract compliance is a primary function of contract administration because it ensures that all parties involved adhere to the terms and conditions outlined in the contract. This involves tracking performance, verifying that deliverables are provided as agreed, and ensuring that any obligations—be they financial, operational, or legal—are met throughout the lifecycle of the contract. Effective compliance monitoring helps to identify issues or disputes early, allowing for timely resolution and maintaining positive relationships between the contracting parties. This proactive approach is essential in minimizing risks and ensuring that the contract achieves its intended objectives. In contrast, developing contract proposals, conducting pre-sale activities, and planning contract negotiations pertain more to the initial stages of the contracting process rather than the administration phase. These activities occur before a contract is executed and are focused on establishing the terms and negotiating conditions rather than managing the ongoing obligations and performance of an already signed contract.