Which types of contracts require council or board approval before execution?

Prepare for the New Jersey QPA Test. Engage with flashcards and multiple choice questions, each offering hints and explanations. Get exam-ready now!

Contracts that exceed the established threshold or deviate from norms necessitate council or board approval before execution because they often involve significant financial implications and ensure adherence to procurement regulations. These thresholds are set to maintain transparency and accountability when public funds are being utilized. By requiring approval for contracts that exceed a predetermined limit, governing bodies can oversee spending and ensure that contracts provide the best value to taxpayers.

This requirement serves as a safeguard against improper spending and helps in maintaining fairness in the bidding process. Additionally, any deviation from established norms might indicate that a standard procedure was not followed, which could flag potential issues in procurement practices that need further scrutiny or justification.

While it might seem appealing to have all contracts require prior approval or to limit this need strictly to contracts with governmental entities or non-profit organizations, the focus on exceeding financial thresholds specifically highlights the need for oversight in significant expenditures, making option B the most appropriate choice.

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