CLC-222 Contracting Exam Prep [Latest 2025/2026
Study Pack] | Complete Test Bank with Verified
Questions and Correct Answers | Detailed Rationales,
Practice Tests, Quiz Bank, and Study Guide for Defense
Acquisition University (DAU) Contracting Certification
Question 1
Which of the following is typically included in a construction contract?
A) Project management software
B) Scope of work. (Correct Option)
C) Personal preferences of the contractor
D) Weather conditions
Rationale: The scope of work outlines the specific tasks and responsibilities involved in
the project.
Question 2
What is the primary purpose of a contract?
A) To create a friendship
B) To legally bind parties to agreed terms. (Correct Option)
C) To outline personal opinions
D) To provide a platform for negotiation
Rationale: Contracts are legally binding agreements that establish the terms and
conditions between parties.
Question 3
Which type of contract specifies a fixed price for the entire project?
A) Lump sum contract. (Correct Option)
B) Cost-plus contract
C) Time and materials contract
D) Unit price contract
Rationale: A lump sum contract involves a single fixed price for the entire scope of
work.
Question 4
In a cost-plus contract, what is the contractor reimbursed for?
,A) Only materials
B) Actual costs plus a fee. (Correct Option)
C) Fixed price only
D) Only labor costs
Rationale: A cost-plus contract reimburses the contractor for actual costs incurred
plus an agreed-upon fee.
Question 5
Which of the following is a common risk allocation strategy in contracting?
A) Ignoring risks
B) Transferring risk through insurance. (Correct Option)
C) Avoiding contracts
D) Sharing all risks equally
Rationale: Transferring risk through insurance is a common strategy to manage
potential liabilities.
Question 6
What is the role of a project manager in contracting?
A) To perform all construction work
B) To oversee project execution and ensure compliance with contract terms.
(Correct Option)
C) To negotiate personal deals
D) To provide legal advice
Rationale: The project manager is responsible for overseeing the project and ensuring
adherence to the contract.
Question 7
What does "liquidated damages" refer to in a contract?
A) Unforeseen costs
B) Pre-determined damages for delays. (Correct Option)
C) Cost overruns
D) Personal losses
Rationale: Liquidated damages are pre-agreed amounts specified in the contract for
delays in project completion.
,Question 8
Which document typically outlines the quality standards required for a construction
project?
A) Technical specifications. (Correct Option)
B) Scope of work
C) Change order
D) Payment schedule
Rationale: Technical specifications detail the quality and performance standards for
materials and work.
Question 9
In a contracting context, what is a "change order"?
A) A request for payment
B) A document that modifies the original contract terms. (Correct Option)
C) A termination notice
D) A bid proposal
Rationale: A change order modifies the original contract to reflect changes in scope,
cost, or schedule.
Question 10
What is the significance of the "Notice to Proceed" in a construction contract?
A) It terminates the contract
B) It authorizes the contractor to start work. (Correct Option)
C) It changes the contract price
D) It cancels the project
Rationale: The Notice to Proceed formally authorizes the contractor to begin work on
the project.
Question 11
Which of the following is an essential element of a legally binding contract?
A) Personal preferences
B) Informal discussions
C) Offer and acceptance. (Correct Option)
D) Social connections
Rationale: Offer and acceptance are fundamental elements that establish a contract.
, Question 12
What is the purpose of a performance bond in contracting?
A) To cover personal injuries
B) To guarantee the contractor will fulfill contractual obligations. (Correct Option)
C) To pay for materials only
D) To manage project schedules
Rationale: A performance bond ensures that the contractor will complete the project
as agreed.
Question 13
Which of the following best describes "scope creep"?
A) A reduction in project scope
B) Uncontrolled changes or expansion of project scope. (Correct Option)
C) Strict adherence to the original scope
D) A method for reducing costs
Rationale: Scope creep refers to the gradual expansion of project scope without proper
control or approval.
Question 14
What is typically required before a contractor can receive final payment?
A) Completion of all work
B) Submission of additional bids
C) Submission of final lien waivers. (Correct Option)
D) Agreement from subcontractors
Rationale: Final lien waivers are often required to ensure that all parties have been
paid.
Question 15
What does the term "retention" refer to in a construction contract?
A) The total contract amount
B) The contractor's profit margin
C) A percentage of payment withheld until project completion. (Correct Option)
D) Payment for materials only
Study Pack] | Complete Test Bank with Verified
Questions and Correct Answers | Detailed Rationales,
Practice Tests, Quiz Bank, and Study Guide for Defense
Acquisition University (DAU) Contracting Certification
Question 1
Which of the following is typically included in a construction contract?
A) Project management software
B) Scope of work. (Correct Option)
C) Personal preferences of the contractor
D) Weather conditions
Rationale: The scope of work outlines the specific tasks and responsibilities involved in
the project.
Question 2
What is the primary purpose of a contract?
A) To create a friendship
B) To legally bind parties to agreed terms. (Correct Option)
C) To outline personal opinions
D) To provide a platform for negotiation
Rationale: Contracts are legally binding agreements that establish the terms and
conditions between parties.
Question 3
Which type of contract specifies a fixed price for the entire project?
A) Lump sum contract. (Correct Option)
B) Cost-plus contract
C) Time and materials contract
D) Unit price contract
Rationale: A lump sum contract involves a single fixed price for the entire scope of
work.
Question 4
In a cost-plus contract, what is the contractor reimbursed for?
,A) Only materials
B) Actual costs plus a fee. (Correct Option)
C) Fixed price only
D) Only labor costs
Rationale: A cost-plus contract reimburses the contractor for actual costs incurred
plus an agreed-upon fee.
Question 5
Which of the following is a common risk allocation strategy in contracting?
A) Ignoring risks
B) Transferring risk through insurance. (Correct Option)
C) Avoiding contracts
D) Sharing all risks equally
Rationale: Transferring risk through insurance is a common strategy to manage
potential liabilities.
Question 6
What is the role of a project manager in contracting?
A) To perform all construction work
B) To oversee project execution and ensure compliance with contract terms.
(Correct Option)
C) To negotiate personal deals
D) To provide legal advice
Rationale: The project manager is responsible for overseeing the project and ensuring
adherence to the contract.
Question 7
What does "liquidated damages" refer to in a contract?
A) Unforeseen costs
B) Pre-determined damages for delays. (Correct Option)
C) Cost overruns
D) Personal losses
Rationale: Liquidated damages are pre-agreed amounts specified in the contract for
delays in project completion.
,Question 8
Which document typically outlines the quality standards required for a construction
project?
A) Technical specifications. (Correct Option)
B) Scope of work
C) Change order
D) Payment schedule
Rationale: Technical specifications detail the quality and performance standards for
materials and work.
Question 9
In a contracting context, what is a "change order"?
A) A request for payment
B) A document that modifies the original contract terms. (Correct Option)
C) A termination notice
D) A bid proposal
Rationale: A change order modifies the original contract to reflect changes in scope,
cost, or schedule.
Question 10
What is the significance of the "Notice to Proceed" in a construction contract?
A) It terminates the contract
B) It authorizes the contractor to start work. (Correct Option)
C) It changes the contract price
D) It cancels the project
Rationale: The Notice to Proceed formally authorizes the contractor to begin work on
the project.
Question 11
Which of the following is an essential element of a legally binding contract?
A) Personal preferences
B) Informal discussions
C) Offer and acceptance. (Correct Option)
D) Social connections
Rationale: Offer and acceptance are fundamental elements that establish a contract.
, Question 12
What is the purpose of a performance bond in contracting?
A) To cover personal injuries
B) To guarantee the contractor will fulfill contractual obligations. (Correct Option)
C) To pay for materials only
D) To manage project schedules
Rationale: A performance bond ensures that the contractor will complete the project
as agreed.
Question 13
Which of the following best describes "scope creep"?
A) A reduction in project scope
B) Uncontrolled changes or expansion of project scope. (Correct Option)
C) Strict adherence to the original scope
D) A method for reducing costs
Rationale: Scope creep refers to the gradual expansion of project scope without proper
control or approval.
Question 14
What is typically required before a contractor can receive final payment?
A) Completion of all work
B) Submission of additional bids
C) Submission of final lien waivers. (Correct Option)
D) Agreement from subcontractors
Rationale: Final lien waivers are often required to ensure that all parties have been
paid.
Question 15
What does the term "retention" refer to in a construction contract?
A) The total contract amount
B) The contractor's profit margin
C) A percentage of payment withheld until project completion. (Correct Option)
D) Payment for materials only
