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Top PMP Exam FAQs-Project Procurement Management Questions,Answers

This page of project management blog covers top 10 PMP Exam FAQs. This PMP Exam questions and answers are based on project Procurement management.

List of Frequently Asked Questions(FAQs) and Answers

Question-1: Procurement documents should have all of the following attributes EXCEPT:
a. Flexible enough to allow consideration of seller suggestion
b. Contract statement of Work
c. Describing the desired form of response
d. Including the qualified sellers list
Answer-1: D The qualified sellers list are those sellers who are asked to submit a proposal or quotations. This is the output of 'request seller response' process(Ref: PMBOK).

Question-2: Generally, a Request for Quotation(RFQ) differs from Request for Proposal(RFP) in that the:
a. RFQ is a type of documentation used to request price quotations from prospective sellers of common or standard products
b. RFQ is a type of documentation used to request proposals from prospective sellers of products
c. RFQ is a type of documentation used to request prospective sellers to provide various pieces of information related to seller capability
d. RFQ is a type of documentation used to request proposals from various functional departments within performing organization
Answer-2: (Check below)

Question-3: An authorized contractor administrator from buyer should provide what to the seller that the contract has been completed.
a. A formal written notice
b. Letters of commendation to all project staff
c. Informal notice of acceptance to the contractor
d. Internal notice to senior management/buyer
Answer-3: (Check below)

Question-4: Which type of contract should be used for a well defined product?
a. Unit-price contract
b. Fixed price contract
c. Cost -reimbursable contract
d. Partnership contract

Question-5: Contract documentation includes all of the following EXCEPT:
a. Seller developed technical documentation
b. Financial documents
c. The RFP or RFQ and seller's proposal
d. Results of contract related inspections

These PMP EXAM FAQs on procurement management cover questions and answers very useful for the PMP aspirants.

Question-6: Bidder's conferences used to:
a. Plan contracting
b. Perform contract administration
c. Ensure that all prospective sellers have a clear, common understanding of the procurement
d. Select sellers

Question-7: All of the following need NOT be present to have a contract EXCEPT
a. Detailed specifications
b. Acceptance of both seller and buyer
c. Address of the seller
d. Buyer's signatures

Question-8: In a fixed price contract, the fee or profit is:
a. Unknown to the buyer
b. Part of the negotiation involved in paying every invoice
c. Applied as a line item to every invoice
d. Determine with the other party at the end of the project

Question-9: 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

Question-10: With which type of contract is seller MOST concerned about project scope of work
a. Fixed price
b. Cost reimbursable
c. Time and Material
d. Purchase Order
Answer-10: In a fixed price contract, the seller has the cost risk and therefore wants to completely understand the scope of work from each other.

Answers to Project Procurement Management FAQS

1. D   2. A   3. A   4. B   5. C   6. C   7. B   8. A   9. A   10. A  


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PMP EXAM FAQs-Project Procurement Management➤