Practice Quiz

PMI PMP Project Manager Certification

Category - Procurement Management

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John is encountering problems with a vendor he has contracted services with. He has requested in writing certain additional services, but he has not seen results. Which best could be the cause of John’s problem with the vendor?
  1. The services were requested in writing and the change was acknowledged
  2. The services at issue are not in the revised contract
  3. The contract is not legally binding
  4. The government will not uphold the contract
  5. Vendors tend to be lazy
Explanation
Answer: b -Vendors are only obligated to provide those services recorded in the contract.

The procurement process requires that the contract process be formal (done in writing). Although John did that, the change was never incorporated into the revised contract. Contracts are legally binding in most countries, with most governments willing to uphold them. Bad contracting can get a project manager in the unemployment line very quickly.

Key Take Away: Project managers should take the time to familiarize themselves with the general rules pertaining to contracts and never be afraid to seek advice from their internal legal counterparts.
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