89 New PMP Procurement Questions & Answers with explanation
11.
You are managing a railway track construction project. The construction contract awarded to your company is fixed price and is based on some pre-determined quantities of work to be executed. During the project execution you find out that the actual quantities of work that need to be executed are 20% greater than what has been stated in the contract. What should you do?
Select one
12.
You manage the construction of a new airport in your home country. Since your organization does not have experience deploying the sophisticated air-traffic control system, you outsourced this to a specialist organization. PMBOK’s Procurement Management knowledge will help you successfully administer this deal; however, for the supplier of the system, all the PMBOK processes will apply since this will be a complete project for the supplying organization. Which of the following will be a common denominator between your project and the supplier projects?
Select one
13.
You have just received an invoice from your supplier that contains some uncertified items. Payments to the supplier are processed through your corporate accounts payable system only after certification of satisfactory work by the project quality control specialist. What should you do?
Select one
14.
You have recently taken over a project as the project manager. The project is midway through execution, and most of the project work has been subcontracted. You have just found out that one of the subcontractors, who was responsible for all demolitions, has been paid 50 percent of the subcontracted value, but he has delivered only 25 percent of the required works. Upon investigation, you learned that all the payments are in line with the signed contract between the two parties and the subcontractor’s work is compliant with the contract specifications. You are annoyed because this does not give you enough control over the subcontracted works. Which of the following is not an appropriate thing to do at this stage?
Select one
15.
The State of New York has contracted with your company to provide a claims payment system for Medicaid benefits. In the contract, a clause states that the State of New York can review your work processes and deliverables. This is an example of:
Select one
16.
What similarity exists between a cost-reimbursable contract and a timeand-materials contract?
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17.
If you had an experience with a particularly well or poorly performing vendor, what is the correct way to document this experience for future projects?
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18.
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?
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19.
A buyer and seller are looking at getting into a long-term relationship spanning 10 years. Both parties would like to be protected from the unstable financial conditions of their country, which are beyond their control. What type of contract is appropriate for such a relationship?
Select one
20.
A program management office (PMO) chose you to write a purchase order because of your expertise in business writing. You learned the PMO has already selected a seller for a software product and would like to award the procurement contract to the selected seller as a purchase order, which you must prepare. In this scenario, the PMO is administering:
Select one