Your contract states the maximum charge for services from the seller will be US $50,000/month. However, the actual invoices have been US $100,000 for the past three months. Stopping the seller's service will impact the project schedule. Under these circumstances, the best thing to do is to review the:
Contract change control system
Scope control system
Performance reporting system
Cost change control system
You are the project manager of a relatively small project to build out improvements to a small shop in a pedestrian mall. The project is using a time and material contract, and you know you must be involved in negotiations. Which of the following is an advantage of a time and material contract?
Negotiations are less extensive.
The seller has a strong incentive to control costs.
The total price is known.
A time and material contract is less work for the buyer to manage.
Which of the following is an advantage of centralized contracting?
It allows a procurement manager to work on a single project.
It increases company expertise in contracting.
It allows for flexibility in procurement practices.
It gives more loyalty to the project.
In which of the following contract types does the buyer have the most cost risk?
Cost plus percentage of costs (CPPC)
Cost plus fixed fee (CPFF)
Cost plus incentive fee (CPIF)
Cost plus award fee (CPAF)
A team has just gathered information and requirements for a new project that will be completed by an external company. The project manager is just starting the procurement process. Which one of the following should be done last?
A make-or-buy analysis
Finalize the terms and conditions of the contract
Contract type selection including fixed-price, unit price, and cost-reimbursable contracts
Seek expert judgment from a variety of resources including industry groups, consultants, and other divisions of her organization
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