Certified Texas Contract Manager Practice Exam

What is one of the key responsibilities in the planning phase of contract management?

1. Defining the roles and responsibilities

2. Conducting financial audits

3. Establishing termination clauses

4. Approving contract amendments

The correct answer is: Defining the roles and responsibilities

Defining the roles and responsibilities is indeed a key responsibility in the planning phase of contract management. This phase involves outlining what each party will contribute to ensure clarity and accountability throughout the lifecycle of the contract. By clearly defining roles, you help prevent misunderstandings and disputes later on. This foundational step sets the stage for effective communication and collaboration, which are essential for the successful execution of the contract. The other options pertain to different stages of contract management. Conducting financial audits occurs during the performance phase to assess compliance with financial aspects of the contract. Establishing termination clauses is part of the contract creation phase, focusing on how to end the agreement. Approving contract amendments is also a function that arises during the contract execution phase when changes are needed based on evolving circumstances or performance outcomes.