Project Procurement & Contracts Flashcards

Which term describes a vendor's preliminary written statement of capability and approach before a formal proposal is requested?

Answer: Request for Information (RFI)

An RFI gathers market information from vendors early in procurement planning, before the formal solicitation is issued.

A project coordinator receives a vendor invoice that does not match the agreed deliverable milestones. The appropriate action is to:

Answer: Reject the invoice and formally request a corrected invoice aligned to contract terms

Invoices must match contract terms; accepting non-compliant invoices undermines contract integrity and financial controls.

Centralized contracting means:

Answer: A dedicated procurement department manages all contracts across projects

Centralized contracting provides consistent procurement expertise, standardized processes, and stronger negotiating leverage.

Which statement about procurement planning is correct?

Answer: Procurement planning should identify what to procure, when, and how before soliciting vendors

Early procurement planning ensures requirements, timelines, and contracting strategies are defined before the market is engaged.

A holdback (retainage) clause in a contract means:

Answer: A percentage of payment is withheld until final acceptance to ensure completion

Retainage incentivizes vendors to complete and fix all outstanding issues before final payment is released.

When evaluating vendor proposals, a weighted scoring model is preferred because:

Answer: It allows the team to objectively rank proposals against multiple criteria with different levels of importance

Weighted scoring quantifies each evaluation criterion's relative importance, making proposal comparisons transparent and defensible.