PMP Exam Question 10

Aligned with PMBOK 6th EditionĀ®.

Project Negotiations

A new Coca Cola factory is about to open and you are managing its equipment installation. Contract negotiations with Kirkpatrick, one critical supplier, 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 project 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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