Certified Texas Contract Manager Practice Exam

How long are contract documents required to be retained if they were executed before September 1, 2015?

1. 4 years

2. 5 years

3. 7 years

4. AC+7 years

The correct answer is: AC+7 years

The requirement to retain contract documents executed before September 1, 2015, stipulates a retention period of "AC+7 years," where "AC" refers to the active contract term. This means that the documents must be kept not only for seven years after the contract's termination but also for the duration of the active contract itself. This ensures that organizations maintain necessary records during the term of the contract while also allowing for a reasonable period afterward to manage any potential claims or issues that may arise. The extended retention period is crucial for legal compliance and for providing adequate support in the event of disputes or audits.