While building a new community park, you hired a contractor to complete a small visitor center that includes restrooms, a snack shop, and bulletin boards. You agreed to a fixed price contract payable upon completion of their deliverable. Midway through the project, they contractor informs you that the economy has affected their bottom line and they could use some funds upfront to pay their subcontractors. Which is the following is the best thing for you to do?

A. Insist that you agreed to pay upon completion and are not willing to violate the contract.
B. Negotiate a change to the payment conditions.
C. Pay the contractor for the work accomplished to date.
D. Start the search for another contractor.

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When hiring a supplier with a time and material contract, one concern to be aware of is:

A. Supplier is not motivated to reduce cost
B. You must have clear scope
C. There is usually an increase in change orders
D. Work can be incomplete or sloppy if they fall behind

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When hiring a supplier with a fixed price contract, one concern to be aware of is:

A. Supplier is not motivated to reduce cost
B. Work can be incomplete or sloppy if they fall behind
C. It is only appropriate for small projects
D. Total project cost is unknown

Answer:

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You are the project manager for a utility company. While determining the type of contract with one of your suppliers, you realize that the scope has not been defined yet. Which of the following contract types is your best choice?

A. Firm Fixed Price (FFP)
B. Time and Material (T&M)
C. Cost Plus Fixed Fee (CPFF)
D. Cost Plus Award Fee (CPAF)

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You are the project manager for a utility company. While determining the type of contract with one of your suppliers, you want to pay a simple fee but recognize that the project will take nearly a decade to complete. Which of the following contract types is your best choice?

A. Cost Plus Fixed Fee (CPFF)
B. Time and Material (T&M)
C. Firm Fixed Price (FFP)
D. Fixed Price with Economic Price Adjustment (FP-EPA)

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You are the project manager for a utility company. While determining the type of contract with one of your suppliers, you determine that you want to reimburse costs and pay a fee based on achieving performance objectives. Which of the following contract types is your best choice?

A. Cost Plus Fixed Fee (CPFF)
B. Cost Plus Incentive Fee (CPIF)
C. Firm Fixed Price (FFP)
D. Fixed Price Incentive Fee (FPIF)

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The project you’ve been working on for the last six months is slightly behind schedule. Since you have a contingency fund available and the project is currently under budget, you figure the best way to catch up is to on time is to add a temporary staff for the next three months. What contract type is typically best for staff augmentation?

A. Fixed Price
B. Cost-Reimbursable
C. Time and Material
D. Depends on the project budget

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As the buyer, you decide that the best contract for your project needs is one that will reimburse the supplier. Regardless of how the supplier performs, you are willing to pay a predetermined amount upon the completion. This an example of what kind of contract?

A. Firm Fixed Price (FFP)
B. Cost Plus Award Fee (CPAF)
C. Fixed Price Plus Cost (FPPC)
D. Cost Plus Fixed Fee (CPFF)

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After a thorough search, the vendor selection team used various evaluation techniques and finally chose a seller for the core deliverable. Which process did they just complete?

A. Close Procurements
B. Administer Procurements
C. Conduct Procurements
D. Plan Procurements

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Part of your project includes the construction of a new room and although it is not your company’s core competency, you decide to perform a make-or-buy analysis. After you conduct your due diligence and make your decision, you will be creating a request for proposal. Which process are you working on?

A. Plan Procurements
B. Select Sellers
C. Conduct Procurements
D. Plan Contracting

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