PMP Questions ID 1940 many organizations favor fixed price contracts because the buyer s risk is minimized by such cont

Many organizations favor fixed-price contracts because the buyer's risk is minimized by such contracts. However, to minimize the seller's risk, which of the following is crucial for a fixed price contract?

Select one

The buyer must precisely specify the number of resources to be used for procurement.

The buyer must precisely specify the time for completing the contract.

The buyer must precisely specify the service or product to be procured.

The buyer must precisely specify the price of the contract.

Rosanne is an experienced project manager working on a pharmaceutical project. This project involves two large vendors supplying chemical products with specific compositions for preparing drugs. While reviewing documents to see how a seller is performing, she notices the seller did not meet some of the contractual terms. Since it is a first-time violation, she would like to initiate a corrective action to bring the seller’s performance in line with the statement of work. Which of the following are not outputs of Rosanne’s effort?

Select one

Work performance data and approved change requests

Work performance information and change requests

Change requests and Organizational process assets update

Change requests and Project management plan updates

You are building a mansion that will have copper roofs. The duration of the project will be approximately three years. You have built into the contract that, as the price of copper increases, your price increases as a percentage of the cost of the copper. However, all other costs are fixed. This is an example of what type of contract?

Select one

Fixed Price with Economic Price Adjustment

Fixed Price Incentive Fee

Unit Price

Time and Materials

Different types of contracts are appropriate for different types of purchases. Which of these is not one of the three broad categories of contracts?

Apart from the difference in the overall governance approach used for the projects performed under the predictive and adaptive lifecycles, the project manager should also be familiar with:

Select one

The difference in the cost/benefit analysis techniques in both approaches.

The tools and techniques used in both approaches.

The difference in the quality standards in both approaches.

The risk management processes used in both approaches.

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