Certified Professional Public Buyer (CPPB) Practice Test

What is the best strategy for addressing changes in the cost of materials?

1. To ignore them

2. To request an increase only when justified

3. To always accept the changes without questioning

4. To renegotiate the contract completely

The correct answer is: To request an increase only when justified

Requesting an increase only when justified is the best strategy for addressing changes in the cost of materials because it ensures a balanced and fair approach to contract management. This strategy allows the buyer to assess the legitimacy of cost changes based on market conditions, supplier pricing, or unforeseen circumstances. By requiring a justification for cost increases, it encourages transparency in the supplier's pricing structure and maintains the integrity of the contract. This approach also helps to protect the interests of the public agency or entity by ensuring that any adjustments made are warranted and reasonable. It fosters a cooperative relationship between the buyer and the supplier, as both parties must communicate and work together to reach an agreeable solution. In contrast, ignoring cost changes can lead to budget overruns and inferior quality if suppliers cut corners to maintain profitability. Accepting changes without question could result in financial strain for the agency as it may lead to unnecessary expenses that could have been avoided with proper oversight. Renegotiating the contract completely, while sometimes necessary, may not always be practical or efficient, especially for minor adjustments that can be addressed through justified requests. Thus, the selected strategy promotes accountability and effective management in procurement practices.