Certified Texas Contract Manager Practice Exam

How long must contract documents be retained after the close of a contract?

1. 4 years

2. 6 years

3. 10 years

4. 7 years

The correct answer is: 7 years

The correct duration for retaining contract documents after the close of a contract is typically seven years. This timeframe is established based on various regulatory and statutory requirements commonly observed in contract management practices, including those related to audits and financial accountability. Retaining records for seven years helps ensure that any potential disputes, audits, or claims that arise after the contract's conclusion can be adequately addressed and supported with relevant documentation. While some organizations or agreements may have specific retention policies that differ, seven years tends to be a widely accepted standard that balances the need for record-keeping with the practicalities of storage and administrative burden. This period allows for sufficient time to resolve any issues that may surface post-contract while not requiring indefinite retention of documents, which may lead to unnecessary complications or resource consumption.