Certified Public Procurement Officer (CPPO) Practice Test 2026 - Free CPPO Practice Questions and Study Guide

Contract management primarily involves overseeing and ensuring compliance with the terms and conditions established in a contract after it has been awarded. This encompasses monitoring the performance of the contract, ensuring that both parties meet their obligations, and managing any issues that may arise during the contract's lifecycle. Effective contract management is crucial for mitigating risk, controlling costs, and ensuring satisfaction from both the buyer and the seller.

This process includes tracking deliverables, managing timelines, addressing performance issues, and facilitating communication between the involved parties. It often requires regular reviews and assessments to ensure the contract remains in alignment with legal and organizational standards.

The other options represent important aspects of the procurement process but do not capture the essence of contract management. Creating contracts and initial negotiations focus on the pre-award phase, while dismissing unsatisfactory suppliers pertains to supplier management rather than oversight of ongoing contracts. Developing competitive pricing strategies is part of the procurement planning and sourcing process, but again does not relate specifically to managing contracts once they are in effect.