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

If you are reading this via email, please click here for the answer.

You released an RFP but several of the prospective suppliers have questions regarding some of the scope. You determine that the best way to listen to their concerns and convey your message is to have a(n):

A. Invitation for bid
B. Qualified supplier list
C. Bidders conference
D. Independent estimate

If you are reading this via email, please click here for the answer.

Contracts should typically be communicated through:

A. Informal written
B. Informal verbal
C. Formal written
D. Formal verbal

If you are reading this via email, please click here for the answer.

After deciding to outsource a part of the project, your sponsor tells you that he wants a contract with the least amount of risk. What type of contract will you be seeking?

A. Fixed price
B. Time and materials
C. Cost plus fixed fee
D. Cost plus percentage of cost

If you are reading this via email, please click here for the answer.

An important output of the Close Procurements process is:

A. Ensuring that the seller is satisfied
B. Reporting earned value to the sponsor
C. Negotiating the next contract for the next project
D. Getting formal acceptance of the deliverable

If you are reading this via email, please click here for the answer.

Using a Fixed Price with Economic Price Adjustment Contract (FP-EPA) typically protects the:

A. Buyer
B. Seller
C. Buyer and seller
D. Escrow

If you are reading this via email, please click here for the answer.

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.

If you are reading this via email, please click here for the answer.

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

If you are reading this via email, please click here for the answer.

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:

If you are reading this via email, please click here for the answer.

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)

If you are reading this via email, please click here for the answer.