Chapter Sixteen. Project Procurement Management


According to the PMBOK, project procurement management includes "the processes to purchase or acquire the products, service, or results needed from outside the project team to perform the work." Procurement management also includes contract management and administration of contracts. The contracts in question generally come from a vendor.

There are six project procurement management processes shown in PMBOK. They are planning purchases and acquisitions, planning contracting, request for seller responses, selecting sellers, contract administration, and contract closure. As with all the rest of the knowledge areas, the various processes interact and overlap with one another.

According to the PMBOK, "A contract is a mutually binding agreement that obligates the seller to provide the specified product/service and obligates the buyer to pay for it." A contract binds both parties, buyer and seller. The seller agrees to provide specific products or services, and the buyer agrees to provide consideration for the service or good. The consideration may be monetary, but it does not have to be. In project management, there are many occasions when the project manager must be aware of how a variety of contracts are structured, and in some cases, the project manager will be the administrator of the contract. In the PMBOK, procurement management is discussed using the buyer-seller relationship. As the various contract types are delineated, the buyer-seller relationship is a key focus of this knowledge area. The assumption used in the PMBOK for the discussion of procurement management is that the buyer of the items for the project is internal to the project team and that the seller is external to the project team.

Q.

In a standard contract, ________ are bound.

 

A.

Buyer and seller

 

B.

Project manager and sponsor

 

C.

Seller and sponsor

 

D.

Buyer and project manager


The answer is A. Both the buyer and seller are bound by the contract.

Q.

The seller agrees to furnish products/services, and the buyer agrees to provide ________.

 

A.

Time

 

B.

Effort

 

C.

Consideration

 

D.

Facilities


The answer is C. Consideration may be monetary, but it does not have to be.

Q.

For the examination, procurement is discussed using the ________ relationship.

 

A.

Technical

 

B.

Buyer/seller

 

C.

Vendor/seller

 

D.

Purchasing


The answer is B. PMI discusses procurement focusing on the buyer/seller relationship.

Q.

In PMBOK, the buyer is ________ to the project team, and the seller is ________ to the project team.

 

A.

Assigned, allocated

 

B.

Important, secondary

 

C.

Related, outside

 

D.

Internal, external


The answer is D. For the purposes of this chapter, this is the configuration of buyer and seller.



Passing the PMP Exam. How to Take It and Pass It
Passing the PMP Exam: How to Take It and Pass It: How to Take It and Pass It
ISBN: 0131860070
EAN: 2147483647
Year: 2003
Pages: 167
Authors: Rudd McGary

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