Certified Contract Management Associate Practice Test

Close out contracts typically involves which of the following activities?

1. Final performance evaluation

2. Negotiating new terms

3. Identifying new suppliers

4. Reviewing project initiation

The correct answer is: Final performance evaluation

Close out contracts typically involves final performance evaluation as it is crucial to assess how well the terms of the contract were met before concluding the agreement. This process includes evaluating deliverables, assessing compliance with the obligations specified in the contract, and confirming that all contractual duties were satisfactorily completed. It ensures that all performance metrics and KPIs have been achieved and provides an opportunity to document successes and lessons learned for future projects. While negotiating new terms, identifying new suppliers, and reviewing project initiation are important activities in contract management, they do not fall under the scope of contract closeout. Negotiating new terms pertains to modifying an existing agreement or entering into a new one, identifying new suppliers relates to sourcing for future projects or needs, and reviewing project initiation focuses on the beginning stages of a project rather than its conclusion. Thus, these activities do not align with the objective of finalizing and closing out existing contracts.