Certified Texas Contract Manager Practice Exam

What are the components of contract management?

1. Planning and settlement

2. Planning and communication

3. Negotiation and closure

4. Execution and oversight

The correct answer is: Planning and communication

The components of contract management encompass a variety of essential activities that ensure contracts are administered effectively throughout their lifecycle. Planning is a crucial component as it involves outlining the objectives, timelines, and frameworks necessary for successful contract execution. Communication plays an equally vital role, as it facilitates the ongoing interaction between parties involved in the contract, ensuring that all parties are aligned and informed about their responsibilities and obligations. Although negotiation and closure are fundamental aspects of forming contracts, they do not encompass the full scope of contract management, which includes ongoing management after the contract has been executed. Similarly, execution and oversight are critical, but they represent specific stages rather than comprehensive components of the entire contract management process. Thus, planning and communication capture the broader perspective of contract management, ensuring that both proactive strategies and continuous dialogue are maintained throughout the duration of the contract.