Profesor:

Francisco Javier Sanz Prez

by fjspsv, 2011

PMP Test C12_01

01. Once signed, a contract is legally binding unless:

A. One party is unable to perform.
B. One party is unable to finance its part of the work.
C. It is in violation of applicable law.
D. It is declared null and void by either party's legal counsel.
02. With a clear contract statement of work, a seller completes work as specified, but the
buyer is not pleased with the results. The contract is considered to be:
A. Null and void.
B. Incomplete.
C. Complete.
D. Waived.
03. All of the following statements concerning bid documentation are incorrect except?
A. Well-designed bid documents can simplify bidders comparison.
B. Bid documentation must be rigorous with no flexibility to allow consideration of
seller suggestions.
C. In general, bid documents should not include evaluation criteria.
D. Well-designed bid documents do not include a contract statement of work.
04. A project manager is told by her sponsor that the project should do whatever possible
to be awarded incentive money for the seller. The primary objective of incentive
clauses in a contract is to:
A. Reduce costs for the buyer.
B. Help the seller control costs.
C. Synchronize objectives.
D. Reduce risk for the seller by shifting risk to the buyer.
05. All the following statements about change control are incorrect except?
A. A fixed price contract will minimize the need for change control.
B. Changes seldom provide real benefits to the project.
C. Contracts should include procedures to accommodate changes.
D. More detailed specifications eliminate the causes of changes.
06. A routine audit of a cost reimbursable (CR) contract determines that overcharges are
being made. If the contract does not specify corrective action, the buyer should:
A. Continue to make project payments.
B. Halt payments until the problem is corrected.
C. Void the contract and start legal action to recover overpayments.
D. Change the contract to require more frequent audits.
07. A primary objective of contract negotiations is to:
A. Get the most from the other side.
B. Protect the relationship.
C. Get the highest monetary return.
D. Define contract objectives and stick to them.
08. A setter is working on a cost reimbursable (CR) contract when the buyer decides he
would like to expand the scope of services and change to a fixed price (FP) contract.
All of the following are the seller's options except?

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A. Completing the original work on a cost reimbursable basis and then negotiating a
fixed price for the additional work.
B. Completing the original work and rejecting the additional work.
C. Negotiating a fixed price contract that includes all the work.
D. Starting over with a new contract.
09. Bidder conferences are part of:
A. Plan contracting.
B. Contract administration.
C. Conduct procurements.
D. Plan purchases and acquisitions.
10. All of the following must be present to have a contract except?
A. Contract statement of work.
B. Acceptance.
C. Postal address of the seller.
D. Buyers' signatures.
11. Which of the following best describes the project manager's role during the contracting
process?
A. Project manager has only minor involvement.
B. Project manager should be the main negotiator.
C. Project manager should supply a clear understanding of the risks of the project.
D. Project manager should tell the contract manager how the contracting process
should be handled.
12. What is one of the key objectives during contract negotiations?
A. Obtain a fair and reasonable price.
B. Negotiate a price under the seller's estimate.
C. Ensure that all project risks are thoroughly delineated.
D. Ensure that an effective communications management plan is established.
13. Which of the following activities not occurs during plan purchases and acquisitions?
A. Make-or-buy decisions.
B. Answering sellers' questions about the bid documents.
C. Creating the contract terms and conditions.
D. Creating the request for proposal or bid documents.
14. Which of the following is the best thing for a project manager to do in the conduct
procurement process?
A. Evaluate risks.
B. Confirm that submittals have been sent.
C. Confirm that changes to the contract are made.
D. Answer sellers' questions about bid documents.
15. The sponsor is worried about the seller deriving extra profit on the cost plus fixed fee
(CPFF) contract. Each month he requires the project manager to submit CPI
calculations and an analysis of the cost to complete or EAC. The project manager
explains to the sponsor that extra profits should not be a worry on this project because:
A. The team is making sure the seller does not cut scope.
B. All costs invoiced are being audited.

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C. There can only be a maximum 10 percent increase if there is an unexpected cost

overrun.
D. The fee is only received by the seller when the project is completed.
16. In a fixed price (FP) contract, the fee or profit is:
A. Unknown.
B. Part of the negotiation involved in paying every invoice.
C. Applied as a line item to every invoice.
D. Determined with the other party at the end of the project.
17. A project performed under a cost reimbursable contract has finally entered the closing
process. What must the buyer remember to do?
A. Decrease the risk rating of the project.
B. Audit seller's cost submittals.
C. Evaluate the fee he is paying.
D. Make sure that the seller is not adding resources.
18. The sponsor and the project manager are discussing what type of contract the project
manager plans to use on the project. The sponsor points out that the performing
organization spent a lot of money hiring a specialist team to come up with the design
with a fixed price contract. The project manager is concerned that the risk be as small
as possible. An advantage of a fixed price contract for the buyer is:
A. Cost risk is lower.
B. Cost risk is higher.
C. There is little risk.
D. Risk is shared by all parties.
19. As part of the records management system, you are trying to make sure that all records
from the procurement are documented and indexed. Which of the following do you not
have to worry about?
A. Proposal.
B. Statement of work.
C. Terms and conditions.
D. Negotiation process.
20. You are in the middle of a complex negotiation when the other party says, We need to
finish in one hour because I have to catch my plane". That person is using which of the
following negotiation strategies?
A. Good guy, bad guy.
B. Delay.
C. Deadline.
D. Extreme demands.
21. At contract closure, who informs the seller with formal written notice that the contract
has been completed?
A. The project manager.
B. The project sponsor.
C. The administrative assistant.
D. The contract manager or procurements manager.
22. Which one of the following change control statements is correct?
A. Changes seldom provide real benefits to the project.

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B. An FP contract will minimize the need for change control.

C. Contracts should include procedures to accommodate changes.
D. More detailed specifications will eliminate the most common causes of changes.
23. Which of the following is not part of procurements administration?
A. Answering questions of potential sellers.
B. Evaluating risks.
C. Confirming submittals have been received.
D. Confirming that changes to the contract are made.
24. As the project manager of the purchasing organization, you enter into a contract with
the seller, known as XYZ Co. The type of contract is CPFF. As the project progress,
the project scope is increased with approved change orders. The cost of the project
also increases. In such a case, the fee in a CPFF contract:
A. Change because change orders approved increased the cost.
B. Never changes.
C. Always decreases as the seller absorbs the increased costs.
D. Change because change orders approved increased the scope.
25. Which of the following is not part of the plan procurements process?
A. Evaluation criteria.
B. SOW.
C. RFP.
D. Negotiation notes.

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Profesor:
Francisco Javier Sanz Prez

by fjspsv, 2011

PMP Test C12_01

Solution
QUESTION GROUP ANSWER
01 Procurement C
02 Procurement C
03 Procurement A
04 Procurement C
05 Procurement C
06 Procurement A
07 Procurement B
08 Procurement D
09 Procurement C
10 Procurement C
11 Procurement C
12 Procurement A
13 Procurement B
14 Procurement D
15 Procurement B
16 Procurement A
17 Procurement B
18 Procurement A
19 Procurement D
20 Procurement C
21 Procurement D
22 Procurement C
23 Procurement A
24 Procurement D
25 Procurement D

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