Certified Texas Contract Manager Practice Exam

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Prepare for the Certified Texas Contract Manager Exam. Study with practice questions and detailed explanations. Get ready to ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is one way to mitigate risk in contract management?

Ignoring potential issues
Implementing warranties and maintenance agreements
Reducing the contract scope
Limiting stakeholder involvement

The correct answer is: Implementing warranties and maintenance agreements

Implementing warranties and maintenance agreements is an effective way to mitigate risk in contract management because these tools provide assurances that the products or services provided will meet certain standards of quality and performance. Warranties serve as a promise from the supplier to address any defects or issues that arise within a specified timeframe, allowing the contracting party to minimize potential losses. Maintenance agreements ensure ongoing support and functionality of the services or products, contributing to risk mitigation by proactively addressing issues before they escalate. In contrast, the other options present less favorable approaches. Ignoring potential issues can lead to unforeseen problems that may become costly and difficult to rectify. Reducing the contract scope could limit the effectiveness of the agreement and may not address existing risks comprehensively. Limiting stakeholder involvement can hinder communication and collaboration, increasing the risk of misunderstandings and poor decision-making throughout the contract lifecycle. Therefore, implementing warranties and maintenance agreements stands out as a proactive measure to safeguard against potential risks.