Certified Texas Contract Manager Practice Exam

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What does File Maintenance refer to in contract management?

Keeping a financial record of all transactions
Maintaining all specified records in a master contract file
Updating the contract terms regularly
Archiving expired contracts

The correct answer is: Maintaining all specified records in a master contract file

File Maintenance in contract management specifically refers to the practice of maintaining all specified records in a master contract file. This involves systematic organization and storage of all documentation related to a contract, ensuring that all necessary information is readily accessible for reference throughout the contract lifecycle. Keeping a well-maintained master file is crucial for effective contract management as it supports compliance, facilitates audits, and aids in decision-making processes. While keeping a financial record of transactions is important, it is a different aspect of contract management that focuses more on the financial aspects rather than the overall documentation of contract terms and conditions. Updating contract terms regularly is also essential, but it pertains more to the active management of the contract rather than the maintenance of records. Archiving expired contracts is a necessary practice for the historical aspect of contracts, but it falls under a different category of record management rather than the ongoing maintenance of current files.