Procurement Management Flashcards
7 cards from real CAPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Procurement Management flashcards as text
When the scope of work is well-defined and risk should be transferred to the seller, which contract type is most appropriate?
Answer: Fixed Price Lump Sum (FPLS)
Fixed-price contracts transfer cost risk to the seller and work best when scope is clearly defined and unlikely to change significantly.
A project manager notices a seller consistently delivering below the agreed quality standard. What should the PM do first?
Answer: Document the issue and issue a formal notice to the seller
The project manager should first formally document the nonconformance and notify the seller in writing, giving them the opportunity to correct performance.
What does 'privity of contract' mean in the context of procurement management?
Answer: A direct contractual relationship between two parties
Privity of contract means that only the parties directly in the contract have rights and obligations under it; the buyer typically has no direct legal relationship with subcontractors.
Which process produces the procurement statement of work (SOW) as an output?
Answer: Plan Procurement Management
The Plan Procurement Management process produces the procurement SOW, which describes the portion of project scope to be included in a contract.
A buyer and seller disagree on whether additional work requested falls within the original contract scope. This type of dispute is called a:
Answer: Claim
A claim is a request, demand, or assertion of rights by a seller against a buyer, often arising from disputed changes or ambiguous contract language.
In which contract type does the buyer bear the MOST financial risk?
Answer: Cost Plus Percentage of Cost (CPPC)
CPPC reimburses the seller for all costs plus a fee that grows with costs, giving the seller no incentive to control spending, placing maximum risk on the buyer.
What is the primary purpose of a bidders conference?
Answer: To ensure all prospective sellers have the same understanding of procurement requirements
A bidders conference (also called a contractor conference) gives all prospective sellers equal access to clarifications about procurement documents before submitting proposals.