PMP Exam Question 116

Aligned with PMBOK 6th Edition®.

Monitoring process :

In your IT project, when work is accomplished according to contract terms, you verify and send invoices for external payment to the PMO financial department. You have recently received a request from a contractor that the invoice issued three months ago has not been paid yet. Which process involves monitoring payments to the seller?

A. Monitor Procurements.
B. Conduct Procurements.
C. Close Project or Phase.
D. Control Procurements.

1 responses on "PMP Exam Question 116"

  1. PMP Solution 116

    A. Monitor Procurements is not a process of Project Procurement Management knowledge area.

    B. Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract. The end results of the process are the established agreements including formal contracts.

    C. Close Project or Phase is the process of finalizing all activities for the project, phase, or contract. The key benefits of this process are the project or phase information is archived, the planned work is completed, and organizational team resources are released to pursue new endeavors.

    Control Procurements has a financial management component that involves monitoring payments to the seller. This ensures that payment terms defined within the contract are met and that compensation is linked to the seller’s progress as defined in the contract. A principal concern when making payments is to ensure there is a close relationship of payments made to the work accomplished. A contract that requires payments linked to project output and deliverables rather than inputs such as labor hours has better controls. Therefore, right answer is D. [PMBOK 6th edition, Page 459] [Project Procurement Management]

    Cheers

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