1 - Leeds School of Business



During the contracting process, what is the purpose of the project manager?

a. None, she is not involved in the process

b. Provide direction on how to contract

c. Supply information on risks to the contracting manager

d. Serve as the negotiator

1. You have worked hard to prepare a detailed design and scope of work for contractor bids. What would be the best contract type for you as the buyer?

a. Cost plus fee

b. Time and Materials

c. Cost Plus Percentage of Cost

d. Lump Sum

2. Make-or-buy decisions are made during the _________ process?

a. Plan contracting

b. Plan purchases and acquisitions

c. Select sellers

d. Request seller responses

3. The advantage of a time and materials (T&M) contract for the buyer is?

a. The seller is insulated against contracting risks

b. Work can be started while the buyer only knows what they need

c. The overhead and profit (OH&P) of the seller is easy to compute

d. Small per item contracts can be started quickly with a fixed price per item

4. You are a seller to a large residential construction firm. With what type of contract are you most concerned about scope?

a. Fixed price

b. T&M

c. Cost plus incentive fee

d. Cost plus percentage of cost

5. You have some internal resources to assign to your projects, but will need to contract out the rest of the work to complete everything on agreed upon schedules. You should put your internal resources on which project?

a. The renovation project that is understaffed at the moment

b. The expansion project that has the highest budget

c. The upgrade project involving lots of proprietary data

d. The automation project where your people have the most expertise

6. You have just removed a nonperforming contractor from your jobsite and have replaced them with another contractor starting tomorrow morning. The first thing you should do is?

a. Establish yourself as the authority

b. Update the project management plan

c. Establish a communication process for the new contractor

d. Show them the jobsite so they can get to work

7. Your have been directed to provide a new software patch that will prevent the new Ukrainian computer virus from entering the companies networks. What type of scope of work would you likely employ to get the project kicked off quickly?

a. Design

b. Functional

c. Detailed

d. Performance

8. The Iranians have torpedoed the ship carrying the new bottling machine you purchased for your clientas it was transported out of Haifa, Israel. Because of this event, you can no longer meet the install date specified in your contract. You would most likely ask for release from the contract under what provision?

a. Breach

b. Force Majeure

c. Fait Accompli

d. Liquidated Damages

9. Administrative closure is different than contract closure in that ?

a. There is no difference, they are multiple terms for the same activity

b. Contract closure happens under multiple processes, while administrative closure only happens at the end of the contract

c. Administrative closure happens under multiple processes, while contract closure only happens at the end of the contract

d. Administrative closure includes completing internal project paperwork while contract closure includes closing contracts with outside parties

10. You have come to the conclusion of your cost plus fee contract with the construction company. What would be the next item that should be taken care of?

a. Close the contract

b. Determine the percentage markup that the contractor is due

c. Pay the retainage fees per the contract

d. Review sellers cost submittals for accuracy

11. The senior project manager of your group is a big proponenet of incentive clauses in your companies contracts. The purpose of these incentive clauses is to?

a. Ensure that the contract comes in under budget

b. Synchronize the objectives of the buyer/seller

c. Reduce the risk to the buyer by ensuring contract compliance

d. Become a preferred buyer minimizing future contracting costs

12. You have lined out a clause in the buyers contract and initialed the strikeout prior to returning the contract to the buyer for signature. That modification of the contract:

a. Is enforceable because the buyer signed the contract after your strikeout/initial

b. Is not enforceable because the buyer did not initial the change

c. Is irrelevant because it was handwritten

d. Is enforceable because the buyer should have signed the contract before it was sent to you

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