PMP Exam Question 10

Aligned with PMBOK 6th Edition®.

A new Coca Cola factory is about to open and you are managing its equipment installation. Over 30 different suppliers will be working for you over a three year period. Each supplier´s work is contingent on the other suppliers meeting their timelines. To meet the scheduled end date provided by management, one critical supplier, Kirkpatrick and Associates, must begin work now, and thereby incurring cost immediately. Contract negotiations with Kirkpatrick have been ongoing for months, and you expect several more weeks will be required for all details to be worked out and the contract to be signed. However, this delay will make meeting your project end date impossible. While negotiations continue, you will most likely send Kirkpatrick a:

a) Purchase order.

b) Request for proposal.

c) Purchase agreement.

d) Letter of agreement.

2 responses on "PMP Exam Question 10"

  1. PMP Solution 10

    A purchase order is the simplest form of a fixed price contract. The statement in the question is asking about what you would use before a contract can be awarded. On the other hand, a request for proposal is a document used to request proposals from sellers. This document will not allow the seller to begin work. A purchase agreement sets the terms and conditions that apply to transactions between parties. A seller generally will not begin work until there is a contract in place. However, the questions looks for any document or communication that defines initial intentions of a project. This can take the form of a contract, memorandum of understanding (MOU), letters of agreement, verbal agreements, email, etc. Therefore, the correct solution is d). [PMBOK 6th edition, Page 698] [Project Procurement Management].


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