Q1: What is the primary objective of negotiation?
A. Define the exact responsibilities of each party
B. Clarify the contract scope
C. Get the best deal possible
D. Find a win-win proposition for both parties
Q2: You are the project manager of a construction project. You are inviting requests for proposal from eligible vendors. While going over the list of vendors, you realize that one of the names in the list is a good friend of yours. You know he is excellent at what he does and will be the perfect match for your project. What should you do next?
A. Disassociate from the bidding process and inform your sponsor
B. Award him the contract since you know he is a perfect match for your project
C. Give him some inputs off-the-record on how your organization awards contracts
D. Do not contact your friend and continue with the procurement process
Q3: You are dealing with a cost plus incentive fee (CPIF) contract. The estimated cost of contract is $150K with a predetermined fee of $30K. The share ratio of buyer to seller is 70/30. Once the project is complete, the actual cost of the project comes out to be $120K. How much savings did the seller make? Also, how much did he make as incentive?
A. $55K, $30K
B. $32K, $27K
C. $30K, $9K
D. $15K, $3K
Q4: You have awarded the contract to a seller. However it was only later that you realized that you have missed a clause for any project delay. You would now want to modify the contract, what is the right way to proceed?
A. Contract is legally binding so cannot be modified once awarded
B. Make use of the Contract Change Control System
C. Inform the seller about this change through a formal written communication
D. Casually bring up the change with the seller after a meeting and observe his reaction
Q5: You are the project manager of a website development project. There is a requirement of payment API integration for your website. This is a one time activity and you figure out that it will be easier to contract this work out rather than hire a couple of engineers for in-house development. So you decide to outsource this work to a third party vendor. What tool did you use here?
A. Bidder Conference
B. Make or Buy Analysis
C. Time and Materials Contract
D. Source Selection Criteria
Check all the articles on Procurement Management
ANSWERS
Q1: D. Find a win-win proposition for both parties
Q2: A. Disassociate from the bidding process and inform your sponsor
Q3: C. $30K, $9K
Q4: B. Make use of the Contract Change Control System
Q5: B. Make or Buy Analysis
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