WorksheetsProject Procurement Management 2022
Total questions: 20
Worksheet time: 1hrs 2mins
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
With which type of contract is the seller MOST concerned about project scope?
Fixed-price
Cost plus-fixed fee
Time and material
Purchase order
A project manager is in the middle of creating a request for proposal (RFP). What part of theprocurement process is he in?
Conduct Procurement
Plan Procurement Management
Administer Procurements
Make-or-Buy Analysis
Your program manager has come to you, the project manager, for help with a bid for her newest project. You want to protect your company from financial risk, and you have limited scope definition. What is the best type of contract to choose?
Fixed price (FP)
Cost plus percentage of cost (CPPC)
Time and material (T&M)
Cost plus fixed-fee (CPFF)
Negotiations between two parties are becoming complex, so Party A makes some notes that both parties sign. However, when the work is being done, Party B claims they are not requiredto provide an item they both agreed to during negotiations, because it was not included in the subsequent contract. In this case, party B is:
Incorrect, because both parties must comply with what they agreed on.
Correct, because there was an offer.
Generally correct, because both parties are only required to perform what is in the contract.
Generally incorrect, because all agreements must be upheld.
A seller is awarded a contract to build a pipeline. The contract terms and conditions require a work plan to be issued for the buyer's approval prior to commencing work but the seller fails toprovide one. Which of the following is the best thing for the buyer's project manager to do?
File a letter of intent.
Develop the work plan and issue it to the seller to move things along.
Issue a default letter.
Issue a stop work order to the seller until a work plan is prepared.
A new project manager is about to begin creating the procurement statement of work. One stakeholder wants to add many items to the procurement statement of work. Another stakeholder only wants to describe the functional requirements. The project is important for the project manager's company, but a seller will do the work. How would you advise the project manager?
The procurement statement of work should be general to allow the seller to make their own decisions.
The procurement statement of work should be general to allow for clarification later.
The procurement statement of work should be detailed to allow for clarification later.
The procurement statement of work should be as detailed as necessary for the type of project.
What type of contract do you not want to use if you do not have enough labor to audit invoices?
Cost plus fixed-fee ( CPFF)
Time & material (T&M)
Fixed-price (FP)
Fixed-price incentive fee (FPIF)
Close Procurements is different from Close Project or Phase in that Close Procurements:
Is the only one to involve the customer.
Occurs before Close Project or Phase.
May be done more than once for each contract.
Includes the return of property.
You have just started work on a procurement when management decides to terminate the contract. What should you do first?
Go to the Close Procurements process.
Finish the Control Procurements process.
Go back to the Conduct Procurements process.
Go back to the Plan Procurement Management process.
Your project team member delivers a project deliverable to the buyer. However, the buyer refuses the deliverable, stating it does not meet the requirement on page 300 of the ethical specifications. You review the document and find that you agree. What is the best thing to do?
Call a meeting of the team to review the requirement on page 300.
Issue a change order.
Explain the contract is wrong and should be changed.
Review the requirements and meet with the responsible team member to review the WBS dictionary.
