Certified Professional Contract Manager (CPCM) Practice Exam 2025 - Free CPCM Practice Questions and Study Guide

Question: 1 / 515

Which of the following describes flexible progress payments?

A method for automatic progress payments

A payment structure tailored to contractor's cash needs

Flexible progress payments are characterized by their adaptability to the specific cash flow needs of the contractor. This payment structure considers the financial situation and requirements of the contractor, allowing for adjustments based on their ongoing cash needs throughout the project duration. This flexibility helps ensure that contractors can maintain their operations and effectively manage their resources.

This approach contrasts with rigid payment systems that might use fixed percentages or predefined milestones. For instance, while options that refer to fixed percentages of the contract price or payments based solely on project milestones impose a standard framework, they do not provide the same level of consideration for a contractor's unique cash flow situation. Consequently, those alternatives may not meet the varying needs of different contractors as effectively as flexible progress payments.

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A fixed percentage of contract price

A payment system based on project milestones

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