WorksheetsChapter 12
Total questions: 10
Worksheet time: 10mins
You are building a mansion that will have copper roofs, The duration of the project will be approximately three years, so you have to built into the contract that as the price of copper increases the contract allows for price increases as a percentage of the cost copper. However, all other costs are fixed. This is an example of what type of contract?
Unit Price
Fixed Price Incentive Fee
Time and Materials
Fixed Price with Economic Price Adjustment
A seller is working on a cost-reimbursable (CR) contract when the buyer decides he would like to expand the scope of the service and change to a fixed-price (FP) contract. All of 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 the work
Starting over with a new contract
The primary objective of contract negotiations is to;
Get the most from the other side
Protect in the relationship
Get the highest monetary return
Define objective and stick to them
With a clear procurement statement of work, a seller completes work as specified but the buyer is not pleased with the results. The contract is considered to be:
Null and void
Incomplete
Complete
Waived
An assessment of your project's situation suggest that the current market place conditions, suppliers and unique local requirements will have a significant influence the project's Procurement Management Plan that you are in the process of developing. These factors are collectively called:
Project constraints
External environmental factors
Enterprise environment factors
Risks and assumptions
Your project has just been fast tracked and you are looking at bringing in a subcontractor to complete networking quickly. There is no time to issue a Request For Proposal (RFP), so you choose to use a company you have used many times before for software development. You are now looking at the sequence of the procurement phases, what the performance indicators will be for the subcontractor and the criteria for moving from phase to phase. What information are you using?
Procurement strategy
Procurement management plan
Procurement statement of work
Bid documentation
You are the project manager and decided to outsource a part of the project to a vendor. The vendor discovered some issues that impact the cost and schedule of its work. How does the vendor update the agreement?
A new contract needs to be signed by your company and the vendor
An amendment contract needs to be signed by your company and the vendor
A SOW needs to be signed by you and the vendor
None of the above
Of the following types of contracts – which has the Highest Risk for the seller?
Cost Plus Fixed Fee (CPFF)
Time and Material (T&M)
Firm Fixed Price (FFP)
Cost Plus Incentive Fee (CPIF)
The project team is arguing about the prospective sellers who have submitted proposals. One team member argues for a certain seller while another team member wants the project to be awarded to a different seller. The BEST thing the project manager should remind the team to focus on in order to make a selection is the:
Procurement documentation
Seller proposal
Source selection criteria
Procurement management plan
The project team is arguing about the prospective sellers who have submitted proposals. One team member argues for a certain seller while another team member wants the project to be awarded to a different seller. The BEST thing the project manager should remind the team to focus on in order to make a selection is the:
Procurement documentation
Seller proposal
Source selection criteria
Procurement management plan
