CAPM Procurement Management 3

Question 1

When the scope of work is well-defined and risk should be transferred to the seller, which contract type is most appropriate?

Accepted Answer

Fixed Price Lump Sum (FPLS)

Answer

Fixed-price contracts transfer cost risk to the seller and work best when scope is clearly defined and unlikely to change significantly.

Question 2

A project manager notices a seller consistently delivering below the agreed quality standard. What should the PM do first?

Accepted Answer

Document the issue and issue a formal notice to the seller

Answer

The project manager should first formally document the nonconformance and notify the seller in writing, giving them the opportunity to correct performance.

Question 3

What does 'privity of contract' mean in the context of procurement management?

Accepted Answer

A direct contractual relationship between two parties

Answer

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.

Question 4

Which process produces the procurement statement of work (SOW) as an output?

Accepted Answer

Plan Procurement Management

Answer

The Plan Procurement Management process produces the procurement SOW, which describes the portion of project scope to be included in a contract.

Question 5

A buyer and seller disagree on whether additional work requested falls within the original contract scope. This type of dispute is called a:

Accepted Answer

Claim

Answer

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.

CAPM Practice Test

CAPM Practice Test

CAPM Procurement Management 3