Certified Texas Contract Manager Practice Exam

When is a payment considered overdue according to contract management guidelines?

1. After 30 days from the invoice date

2. Upon receipt of goods or services

3. After confirmation of payment

4. When an invoice is not submitted in time

The correct answer is: Upon receipt of goods or services

A payment is generally considered overdue after a specific time period following the invoice date, which is typically stipulated in the contract based on payment terms. In many contract management guidelines, a common threshold for determining an overdue payment is 30 days from the invoice date. Therefore, a payment is deemed overdue if it has not been paid within that timeframe, making the correct context for understanding this question aligned with that timeframe rather than the receipt of goods or services. Receipt of goods or services may initiate the payment process, but payments are evaluated on the basis of the terms agreed upon in the contract, particularly concerning the time frame established for payment following the issuance of an invoice. This standard highlights the importance of maintaining clear timelines for financial obligations within contract management.