Crucial Exams

Project Management Professional Practice Question

During the Plan Procurement Management process, your team must decide whether to use a fixed-price, cost-reimbursable, or time-and-materials contract for an external supplier. Which of the following best describes who should participate in selecting the appropriate contract type?

  • Only executive management, because they control the budget and organizational risk tolerance.

  • Only the procurement department, because they will sign the contract and handle vendor relationships.

  • The project manager in collaboration with the procurement team and other key stakeholders, because contract type affects project risks, costs, and schedule.

  • The external seller, because they best understand how they can deliver the work.

Project Management Professional
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