Certified Apartment Manager (CAM) Practice Test

When might contract bids not be necessary?

1. For very large contracts

2. For very small contracts

3. To expedite the process

4. When there is only one bidder

The correct answer is: For very small contracts

Contract bids might not be necessary for very small contracts mainly due to the practicality of the payment involved and the limited scope of work. In many situations, the costs, efforts, and time associated with soliciting formal bids can outweigh the benefits for contracts that involve minimal amounts. For small contracts, property managers often prioritize efficient processes and may rely on a simple quote or verbal agreement instead of a formal bidding process. This approach can help save time while still meeting the needs of the property without putting undue burden on resources. In contrast, larger contracts typically require a bidding process to ensure competitiveness and transparency. The need to expedite the process may sometimes be relevant, but it wouldn't justify bypassing the bidding process unless it's a very small contract. Similarly, having only one bidder might imply no competition, but could raise issues around fairness and pricing, hence it's not a standard justification for omitting bids. Therefore, focusing on smaller contracts outlines the rationale for simplifying the contracting process.