PROCUREMENT MANAGEMENT

Question 1

Contracts and Agreements in Projects

Answer 1

Legally establish and define conditions, roles, and responsibilities between parties.

Question 2

Contracts vs. Agreements

Answer 2

Contracts are legally binding, while agreements may not always be.

Question 3

Contract Signing Criteria

Answer 3

Legal competence of parties and an exchange of goods or services are essential.

Question 4

Agreements Within Organizations

Answer 4

Used for internal agreements without needing legal protection.

Question 5

Formal Written Communication for Contracts

Answer 5

Necessary for clarity and legality in contract-related issues.

Question 6

Legally Competent Parties in Contracts

Answer 6

A primary requirement for signing a contract.

Question 7

Formal Change Orders

Answer 7

Facilitate changes to the contract’s conditions while ensuring documentation and agreement.

Question 8

Prohibited Elements in Contracts

Answer 8

Contracts should not contain any illegal conditions.

Question 9

Verbal Agreements

Answer 9

Although they can be legally binding too, they are more appropriate for internal organizational dealings where legal protection isn’t necessary.

Question 10

Procurement Management Plan Creation

Answer 10

The responsibility of the Project Manager, involving inputs from the Procurement Manager.

Question 11

Procurement Statement of Work

Answer 11

Created by the Project Manager, it defines the work to be done by the subcontractor.

Question 12

Outsourcing Decisions

Answer 12

Based on the Procurement Statement of Work, determining whether to subcontract or perform work in-house.

Question 13

Determining Contract Types

Answer 13

The responsibility of the Procurement Manager.

Question 14

Bid Documents Development

Answer 14

Conducted by the Procurement Manager and their team.

Question 15

Negotiations with Sellers

Answer 15

Led by the Procurement Manager, with potential involvement of the Project Manager.

Question 16

Selecting Vendors for Specialized Requirements

Answer 16

The Procurement Manager is responsible for identifying and selecting suitable vendors.

Question 17

Scope Inclusion in Contracts

Answer 17

The Project Manager ensures all project scope, including management work, is included in the contract.

Question 18

Procurement Manager’s Role in Procurement Management

Answer 18

Managing contracts and overseeing contract-related activities.

Question 19

Conflict Resolution Between Project and Procurement Managers

Answer 19

Collaborative approaches are recommended for finding solutions.

Question 20

Make-or-Buy Analysis

Answer 20

Decides whether to perform work in-house or outsource it.

Question 21

Bidder Conferences

Answer 21

Facilitate answers to seller questions and clarify work requirements.

Question 22

Source Selection Criteria

Answer 22

Criteria for seller selection.

Question 23

Source Selection Criteria Objective

Answer 23

To objectively select the best seller.

Question 24

Letters of Intent

Answer 24

Give sellers confidence to start preparations before signing the contract.

Question 25

Plan Procurement Management Process Goals

Answer 25

Planning how procurement activities will be managed and executed.

Question 26

Primary Activities in Plan Procurement Management

Answer 26

Creating the Procurement Statement of Work and developing the Procurement Management Plan.

Question 27

Control Procurements Techniques

Answer 27

Includes performance reviews, inspections, and auditing.

Question 28

Contract Structuring in Adaptive Environments

Answer 28

Multi-tiered structure with both adaptive and core parts.

Question 29

Customer Collaboration in Agile Projects

Answer 29

More important than contract negotiation.

Question 30

Customer Collaboration vs. Contract Negotiation in Agile

Answer 30

Focused on establishing a win-win situation.

Question 31

Procurement Closing for Individual Procurements

Answer 31

Done separately for each subcontracted work.

Question 32

Final Performance Report in Procurement File

Answer 32

Evaluates the seller's overall performance during procurement.

Question 33

Disagreements Due to Contract Interpretations

Answer 33

A negotiation process should be initiated.

Question 34

Documenting Communications in Procurement Process

Answer 34

Protects from potential legal disputes.

Question 35

In-depth Inspection in Procurement Closing

Answer 35

Ensures work satisfies the contract conditions.

Question 36

Lessons Learned in Procurement Closing

Answer 36

To identify improvements for future procurements.

Question 37

Lessons Learned from Procurement Processes

Answer 37

Document issues like supplier delays in lessons learned for future reference and procurement process refinement.

Question 38

Hybrid Contracts in Adaptive Environments

Answer 38

Simplify modifications and offer flexibility.

Question 39

Selecting Contract Types for Uncertain Scope Projects

Answer 39

Choose flexible contracts like Cost Reimbursable or Time and Material for projects with evolving scopes.