Certified Professional Public Buyer (CPPB) Practice Test

When a public agency fails to disclose vital information to a contractor, what is likely to happen?

1. The contractor may delay the project.

2. There will be no effect on the contractor's performance.

3. A constructive change will be held to have occurred.

4. The project will automatically be canceled.

The correct answer is: A constructive change will be held to have occurred.

When a public agency fails to disclose vital information to a contractor, a constructive change is likely to be held to have occurred because such non-disclosure can impact how the contractor executes the contract. A constructive change arises when a party's actions or omissions result in a change in the contract terms or in the scope of work. If vital information is withheld, it can lead to unforeseen issues or additional work that the contractor must address, effectively changing the project scope without a formal amendment to the contract. This situation demonstrates the principle of good faith and fair dealing in contractual relationships, where both parties are expected to provide necessary information that may affect performance under the contract. When vital information is not disclosed, the contractor may face conditions that were not anticipated, which justifies the concept of a constructive change. As a result, the contractor may have grounds to request additional compensation or time due to the impact of the withheld information, reflecting a change in the understanding and execution of the contract. The other options do not accurately describe the likely outcomes of non-disclosure. Delays might occur, but they are not guaranteed as a result of non-disclosure; similarly, the effect on performance cannot be disregarded. The project will not automatically be canceled solely due to non-disclosure