PMP Questions ID 1736 a seller began a project that was contracted on a time and materials t m basis based on the ag

A seller began a project that was contracted on a time-and-materials (T&M) basis. Based on the agreed-upon rates and effort, the initial contract amount was $100,000 over a one-year period. However, when the project was completed, the total contract value turned out to be $350,000 over a two-year period. What mechanism could the buyer have used to prevent this unlimited cost growth and schedule change?

Select one

Use of a fixed price contract

A penalty based on the increased cost and timeline

Use of a not-to-exceed value and a time limit on the contract

A service level agreement

In a multi-phase project, the procurement team decided to close the procurements applicable to a particular phase of the project. What happens to unresolved claims?

Select one

Unresolved claims are usually resolved at the end of all phases of the project.

Unresolved claims are also closed when the procurements for that phase are closed.

Unresolved claims remain open for a period of one year from closure of procurements.

Unresolved claims may still be subject to litigation after closure.

During the procurement process, a contractual relationship is established between a buyer and a seller. During the contract lifecycle, what is the correct sequence in which the following terminology is applied to a seller: Vendor, selected source, and bidder?

Select one

The seller is viewed first as a selected source, then as a bidder and then as a vendor.

The seller is viewed first as a vendor, then as a bidder and then as a selected source.

The seller is viewed first as a bidder, then as a selected source and then as a vendor.

The seller is viewed first as a bidder, then as a vendor, then as a selected source.

Many organizations consider contract administration to be an administrative function separate from the project organization. Who carries out the function of contract administration in such organizations?

Select one

The Project Manager

The Procurement Advisor

The Procurement Administrator

The Contract Advisor

As part of the procurement process, the procuring organization elected to have an estimate of costs prepared by an outside professional estimator. The estimator came up with an estimate of $500,000. However, the cost estimates prepared by prospective sellers were in the range of $200,000. How can this be best interpreted?

Select one

The professional estimator has inflated the estimate of costs.

The prospective sellers do not have the required skills to do the project.

Prospective sellers are trying to underbid and win the project.

The procurement statement of work was deficient and ambiguous.

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