Project Procurement Management 2022

Once signed, a contract i slegally binding unless:

• One party is unable to perform.

• One party is unable to finance its part of the work.

• It is in violation of applicable law.

• It is declared null and void by either party's legal councel.

You are advising another project manager who is starting his first agile project. In addition to the development tea, he would like to use subcontractors for some parts of the work, but he isn't sure how to define the acceptance criteria. Which statement would you advise him to include in the contract?

• "The completed deliverables must be fit for business purpose."

• "The delivery date may vary as long as all required scope is completed."

• "The completed deliverables must match the original specification."

• "The quality of the completed deliverable must pass UI Testing."

Your organization is transitioning to an agile approach. You have been asked to review the company's existing standard procurement contracts and revise them as needed to reflect the new project approach. What is one of the key adjustments you want to make?

• Reduce the time allowance for meeting and planning activities with the team.

• Add more flexibility for adjusting the iterative delivery deadlines.

• Increase the customer's involvement in prioritising and reviewing the deliverables.

• Improve the standards for providing clear, detailed specification.

A project manager for the seller is told by her management that the project team should do whatever possible to be awarded incentive money. The primary objective of incentive clause in a contract is to:

• Reduce cost for the buyer.

• Help the seller control costs.

• Synchronize objectives.

• Reduce risk for for the seller by shifting risk to the buyer.

All the following statements about change control are incorrect except:

• A fixed-price contract will minimize the need for change control.

• Changes seldom provide real benefits to the project.

• Contract should include procedures to accomodate changes.

• More detailed specifications eliminate the cause of changes.

A seller is working on a cost-reimbursable (CR) contract when the buyer decides he would like to expand the scope of services and change to a fixed-price (FP) contract. All the following are the seller's options except:

• Completing the original work on a cost-reimbursable basis and then negotiating a fixed-price for the additional work.

• Completing the original work and rejecting the additional work.

• Negotiating a fixed-price contract that includes all the work.

• Starting over with a new contract.

Which of the following best describes the project manager's role in the procurement process?

• The project manager has only minor involvement.

• The project manager should be the negotiator.

• The project manager should provide an understanding of the risks of the project.

• The project manager should tell the contract manager how the contracting process should behandled.

A project performed under a cost-reimbursable contract has finally entered the CloseProcurements process. What must the buyer remember to do?

• Decrease the risk rating of the project.

• Audit seller's cost submittals.

• Evaluate the fee she is paying.

• Make sure the seller is not adding resources.

The sponsor and the project manager are discussing what type of contract the project manager plans to use on the project. The sponsor points out that the performing organization spent a lot ofmoney hiring a design team to come up with the design. The project manager is concerned that therisk for the buyer be as small as possible. An advantage of a fixed-price contract for the buyer is:

• Cost risk is lower.

• Cost risk is higher.

• There is little risk.

• Risk is shared by all parties.

Which of the following is an advantage of centralized contracting?

• More loyalty to the project

• Easier access

• Increased expertise

• More loyalty to the project