PMP Questions procurement knowledge page 7

61.

Maintaining good supplier relationships should be important to all project managers. A good buyer-seller relationship is a partnership that results in a win-win situation that nurtures both parties. Which of the following is both a short- and long-term benefit of treating a supplier with courtesy, honesty, and fairness?

Select one

There is no need to have formal contracts in place

Delivery of quality products and services at the best price

The buyer can delay the payments without jeopardizing the relationship

The supplier can charge a price higher than the market price

62.

Performance reports are produced during the Control Procurements process by evaluating work performance data against the agreement requirements. Which of the following is the prime objective of producing such reports?

Select one

Performance reporting is a good project management practice and must be carried out on all projects.

Performance reports are produced so they can be added to lessons-learned database, and the future project might benefit.

Performance reports document the analysis of the project manager and does not require supplier’s participation.

Providing management with information about how effectively the seller is achieving the contractual objectives.

63.

Three years back, your organization awarded a fixed price contract to a reputable local contractor to construct a new airport terminal in the city. A few days back, you received a change request from the contractor requesting to adjust the contract’s price. The contractor is claiming that as a result of the recent national recession, the prices of raw materials have gone up and he cannot complete the rest of the project at the contract price. Is the contactor’s request legitimate?

Select one

Yes, you cannot penalize the contactor for price escalations due to force majeure.

Yes, unless there is no Economic Price Adjustment provision in the contract.

No, the price of the contract is fixed and cannot be changed.

No, the price hike due to recession must be adjusted against the contractor’s profit.

64.

Unless an enterprise-wide ERP is deployed in an organization, disparate IT systems perform specialized tasks in a project. Which of the following systems typically processes supplier’s payments after obtaining all the necessary certification of satisfactory work?

Select one

Accounts payable system

Project management information system

Change control and tracking system

Supply chain management system

65.

All requested changes to a contract go through Contract Change Control Systems of both parties. The Contract Change Control system documents all requested changes for future reference. However, requested but unresolved changes might not make it up to either party’s Change Control Systems. If you are contesting a dispute, where can you find a record of such requested changes?

Select one

Procurement management plan

Project management plan

Project correspondence

Approved change requests log

66.

You are currently managing an urban development project for a municipal authority. You and your team are managing the project and have outsourced most of the project work to specialist contractors. All the contracts awarded were FFP contracts. The project is almost 50 percent complete, and most of the contractors have requested amendments to their contacts. Work specifications were not clear at the time of contract awards, and as a result, new work requirements have come up. What is your lesson learned?

Select one

Never award FFP contracts in the future since they usually result in disputes and contests

Cost-plus contracts are ideal types of contracts for construction projects

Do not award FFP contracts unless the scope of work and specifications are precisely articulated.

Good and credible contractors were not selected for the project at the time of award

67.

You are managing a construction project. Your company does not specialize in construction design so you outsourced the construction design to a third party. You are conducting regular procurement performance reviews and are dissatisfied. You want to carry out a detailed audit of the design supplier’s work processes to determine the root cause. Can you do that?

Select one

Yes, it is a good project management technique advocated by the PMBOK guide.

Yes, if there is a provision in the contract allowing work process audits.

No, you are only authorized to perform quality audits on the delivered products and not the supplier’s internal work processes.

No, a detailed procurement audit cannot be performed until you terminate the contract.

68.

Your construction project is in execution, and you require a major change to one of your supplier agreements. Can you directly make this change with mutual consent of the supplier during the Control Procurements process, or do you have to visit the Perform Integrated Change Control process, as well?

Select one

The change request needs to be approved through the Control Procurements process prior to making the change through the Integrated Change Control process.

The change request can be directly processed through the Control Procurements process since the change requests only affects a particular supplier agreement.

The Control Procurements process is about identifying variances. The supplier contract can directly be altered through the Perform Integrated Change Control process.

The change request needs to be approved through the Perform Integrated Change Control process prior to making the change through the Control Procurements process.

69.

Crashing is an effective schedule compression technique at times when a project is struggling behind schedule. However, increasing the number of resources to twice the original number of the resources does not always cut the time by half. This is due to:

Select one

Fast tracking the project

Risk mitigation due to crashing the project

The law of diminishing returns

Critical path analysis

89 New PMP Procurement Questions & Answers with explanation