PMI PMP-Project Management Professional Practice Exam Q. 1271 to 1280
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Set of 10 Questions
Correct Answer has been Highlighted in RED
Q. 1271: All of the following are examples of good control procurement skills that project managers need to exercise EXCEPT:
A. Approving invoices as the work is completed
B. Supervising the work to be done under the terms of the contract
C. Developing contract clauses
D. Preparing and processing change requests
Section: Mix Questions
Justification in favor of the correct answer:
First, developing contract clauses is done during contract formation, not control procurements, which begins at contract signing. Second, contract specialists and attorneys:__ given their legal expertise:_ are typically the individuals who write contract clauses, not project managers.
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Q. 1272: The best approach to resolve the settlement of all outstanding contract changes, claims, and disputes is using:
A. Litigation
B. Alternative dispute resolution
C. Negotiation
D. Mediation
Section: Mix Questions
Justification in favor of the correct answer:
While there are a variety of ways to settle claims, disputes, and changes, the preferred approach is negotiation. It is a strategy to work toward compromise or to reach an agreement that both parties can accept.
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Q. 1273: On large contracts, the contract administrator typically has a need to resolve ambiguity in the clauses that govern work performance and other issues. Assume that on your contract there is an order of precedence clause. This means that:
A. Inconsistencies in the solicitation of the contract shall be resolved in a given order of procedure
B. An alternative dispute resolution process is in place that shall be followed to resolve any conflicts
C. Any ambiguities are generally interpreted against the party who drafted the document
D. Undefinitized contractual actions cannot be authorized
Section: Mix Questions
Justification in favor of the correct answer:
The order of precedence specifies that any inconsistency in the contract shall be resolved in a given order. This avoids confusion and debate, which could lead to litigation.
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Q. 1274: During contract negotiations on large contracts, the negotiation process focuses on many key issues, with price being one of them. Separate negotiations can be made on price, quantity, quality, and timing, which can significantly lengthen the process. The negotiation process can be shortened, however, provided that:
A. Planning is done for negotiations
B. Expertise of the project management staff in the procurement process is at a high level
C. A request for proposal is used rather than a request for quotation
D. There is integrity in the relationship and prior history with the vendor
Section: Mix Questions
Justification in favor of the correct answer:
When people know and trust one another, and in particular have worked with each other before, the negotiation process can be significantly shortened. Three major factors of negotiation should be followed: compromise ability, adaptability, and good faith.
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Q. 1275: Contract negotiations are NOT required when:
A. A company uses sealed bids
B. There is a sole source procurement
C. A competitive range is established
D. A two-step process is used
Section: Mix Questions
Justification in favor of the correct answer:
When using the sealed bid method, competitive market forces determine the price, and the award goes to the lowest bidder, provided all other terms and conditions of the contract are met.
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Q. 1276: It is critical during the proposal preparation stage that:
A. The negotiation strategy is determined
B. A change management strategy is developed
C. Roles and responsibilities for the ultimate project are determined
D. Contract terms and conditions are reviewed before the proposal is submitted to the client
Section: Mix Questions
Justification in favor of the correct answer:
The contracts (legal) representative is responsible for the preparation of the contract portion of the proposal. Generally, contracts with the legal department are handed through or in coordination with the proposal group. Before the proposal is submitted to the client, contract terms and conditions should be reviewed and approved.
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Q. 1277: Which of the following types of contracts has the least risk to the seller?
A. Firm-fixed-price
B. Cost-plus-fixed-fee
C. Cost-plus-award-fee
D. Fixed-price-incentive fee
Section: Mix Questions
Justification in favor of the correct answer:
On a firm-fixed-price contract, the seller absorbs 100 percent of the risks; while on a cost-type contract, the buyer carries the most risk. Cost-plus-fixed-fee contracts have less risk to sellers than cost-plus-award-fee or cost-plus-incentive-fee contracts because the fee is fixed based on costs, so the seller is guaranteed a certain level of profit.
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Q. 1278: Assume that your company has a cost-plus-fixed-fee contract. The contract value is $110,000, which consists of $100,000 of estimated costs with a 10-percent fixed fee. Assume that your company completes the work but only incurs $80,000 in actual cost. What is the total cost to the project?
A. $80,000
B. $90,000
C. $10,0000
D. $125,000
Section: Mix Questions
Justification in favor of the correct answer:
In this situation the fixed-fee of $10,000 does not change but now represents a seller profit of 12.5 percent on incurred costs. This means that the total cost to the project is $90,000.
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Q. 1279: During your project, you will have a number of different types of meetings. Some will be informational, others will be key updates, and some will be for decision-making purposes. While different attendees will attend each meeting, a best practice to follow is to:
A. Group stakeholders into categories to determine which ones should attend each meeting
B. Invite those stakeholders who have a high level of interest in your project to attend each meeting
C. Be sensitive to the fact that stakeholders often have very different objectives
D. Recognize that roles and responsibilities may overlap but practice a policy of ‘no surprises’ and inform your stakeholders about any upcoming meetings
Section: Mix Questions
Justification in favor of the correct answer:
A project stakeholder is an individual, group, or organization that is actively involved in the project or have interests that may be affected, either positively or negatively, as a result of the performance or completion the project. Stakeholders also may exert influence on the project and its results. Managing stakeholder expectations is difficult since stakeholders often have different or conflicting objectives.
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Q. 1280: You are managing a project with team members located at customer sites on three different continents. You have a number of stakeholders on your project, and most of them are located outside of the corporate office. Who should be responsible for stakeholder management?
A. A specific team member in each of the three locations
B. You, because you are the project manager
C. The project sponsor
D. A core team including you, as the project manager, and three representatives from the three different locations
Section: Mix Questions
Justification in favor of the correct answer:
Stakeholder management refers to any action taken by the project manager or project team to satisfy the needs of and to resolve issues with project stakeholders. The ability of the project manager to correctly identify and manage stakeholders appropriately can mean the difference between project success or failure.
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