As the project manager over a major construction project, you will spend much of your time managing your suppliers. One of your major objectives during negotiation should be:

obtain a fair and reasonable price

obtain the lowest price possible

ensure your suppliers are taking most to all of the risk

support collusion among all your potential suppliers

You and your team are closing out a contract with one of your suppliers. Formal written notice that the contract has been completed is usually done through:

the project manager

the project teams

the contract administrator

the project sponsors

You have had a contract in place for several years with your sub-contractor, Foster Associates. Over the last few months deliverables have been late and quality low. Management has just decided to terminate this contract. What process will you now enter?

close procurements

close phase or project

verify scope

administer procurements

You have just entered a major project review. There is a lot of excitement in the room, and it is not good. They are discussing that the project has almost reached the point of total assumption. You realize they are discussing what type of contract?

firm fixed price

fixed price incentive

cost plus incentive

cost plus fixed fee

You are an independent contractor working to support a large customer headquartered in Montreal with a large manufacturing facility in Toronto. You rotate your time, traveling back and forth from Montreal to Toronto every other week. Due to a major blizzard, you are unable to get to the manufacturing facility for several days. Your failure to be in Toronto is allowed as the storm is considered a temporary excuse for non-performance. Another name for this clause in the contract is:

privity

force majeure

consideration

enterprise environmental factor

On what contract type does the buyer typically have the lowest cost risk?

Time and materials

Cost plus percentage of cost

Cost plus fixed fee

Fixed price

A contract change control system is normally part of what process?

plan procurements

administer procurements

conduct procurements

close procurements

Your procurement manager is contrasting fixed price to cost reimbursable contracts. She states the following general comments about cost reimbursable contracts compared to fixed price contracts. Everything she states is true except:

the procurement statement of work does not need to be as detailed in a cost reimbursable contract

the price for the cost reimbursable is often lower than for a fixed price

the buyer has less work to do as far as auditing the sellers invoices on a cost reimbursable contract

the seller has less risk on a cost reimbursable contract

You are working under a large Fixed Price Incentive Contract. The pricing for the contract is: target cost:

$100,000 target profit: $ 10,000 target price $110,000 share ratio 80/20 Price ceiling $125, 000. The Point of total assumption for this contract is?

a) $ 110,000

b) $ 118,750

c) $ 120,000

d) $ 125,000