10. Procurement Management (Rita's)

Tuan Lam
Flashcards by , created almost 4 years ago

Certificate PMP Exam Prep (Tips & Tricks) Flashcards on 10. Procurement Management (Rita's), created by Tuan Lam on 12/22/2015.

Tuan Lam
Created by Tuan Lam almost 4 years ago
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Question Answer
Contract? Created with external entity Form legal relationships Requires formality (formal written; can have verbal) Can be considered an agreement
Agreement Broader term than Contract Outline the intentions Charter & pm plans are agreements
Sellers provide solutions or augment your project team with additional resources? Both. For large project, seller provides full solutions. Assume this for the exam
Should procurement requirements documented in contract? YES. It must be.
What if a procurement requirement is not in contract? A formal change order to the contract must be issued Changes in contract must be approved in writing
What is one important benefit of contract in project management? Reduce risks
Should the PM be included in the bidding and proposal process? YES.
The 3 broad categories of contracts? Fixed price (FP) Time & Material (T&M) Cost-reimbursable (CR)
How project control is different in a procurement environment? The seller has different culture & structure Buyer and seller have different objectives
Can there be multiple procurement closures in a project? YES. Since there can be many procurement
Procurement closure vs Project closure Project closure: happens at each project phase or project completion Procurement closure: happens at contract completion
Primary usage of incentive in contract is? Synchronize objectives (sellers' with buyers')
Can you halt payments while in a contract? Generally NO. But if the answer include: "Halt payment on the disputed amount" then YES.
On a CR contract, should you change contract to request more audits when you found out a few overcharges made? NO. It does not solve the problem. The best answer depends on the provided choices. Some times, you must continue making the payments
The primary objective of contract negotiations is to...? Protect relationship (NOT get the most from the other side) (NOT define objectives & stick)
What can a seller do with a contract? Negotiate a change Refuse a change or new request from the buyer
What can't a seller do with a contract? Unilaterally decide to start over a new contract
What are needed to form a contract? Procurement statement of work Acceptance (of both parties)
When does procurement negotiation occur? Conduct & Close Procurement processes
Contract that limit fees for large projects with limited scope definitions? Cost plus fixed fee (CPFF)
What PM does if seller does not perform contract terms? The seller have defaulted 1. contact the seller and see what going on 2. send formal written notice (default letter) if required