1 A prime contractor in a customer project under CPFF contract has run into unexpected technical problems. Fixing them will require a lot of additional work to be done.

The company made a decision to book more staff and equipment from their subcontractors in order to adhere to the agreed timeline. The customer agreed to this decision.

What will most likely happen?

a The contractor's indirect costs will increase and the customer's payment for them will increase too

b The contractor's indirect costs will increase, but the customer's payment for them will not increase

c The contractor's indirect cost will not increase, but the customer's payment for them will

d Both the contractor's indirect costs and customer's payment for them will not increase

2 A project management team is evaluating the causes that might contribute to unsatisfactory performance and quality. Which of the following statements is not true?

a Normal process variation is attributable to random causes and sometimes also called "white noise".

b Special causes are easier to predict and handle than random causes (also called common causes).

c Special causes are unusual events which are difficult to foresee and often produce outliers.

d A process can be optimized to limit the bandwidth of variations due to random causes.

3 You are performing a project management audit in your company and find that most of the project plans are neither consistent nor up-to-date.

Which of the following statements is not true?

a Projects should never be executed without a valid, updated and working project management plan.

b The consistency of the project management plan is secondary because it is only the results that matter.

c A great deal of effort is required to develop and update a project plan, but the benefits include less pressure on all stakeholders and a resulting product that will satisfy the requirements.

d Poor planning and insufficient updating of project management plans are common reasons for cost and time overruns.

4 You want to perform active risk acceptance. What should you do?

a Create contingency reserves in resources, money and time.

b Develop a plan to minimize impact in case that an identified risk occurs.

c Develop a plan to minimize the probability of occurrence for identified risks.

d Make additional resources available to speed up the project.

5 When do bidder conferences normally take place?

a After the contract has been awarded to keep alternatives open.

b After submission of bid or proposal, but before contract award.

c Prior to the submission of a bid or proposal by the bidder.

d After technical meetings with bidders to discuss contract requirements.