Practice Test Geeks(CPP) Certified Project Professional Practice Test
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Procurement & Contract Management Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Procurement & Contract Management flashcards as text

  1. What does the legal concept of 'consideration' require in a valid procurement contract?

    Answer: Both parties must exchange something of value

    Consideration is the mutual exchange of value (e.g., payment for goods or services) that makes a contract legally binding and enforceable.

  2. A vendor claims that an 'Acts of God' event caused project delays. Which contract clause would the vendor invoke to seek relief from liquidated damages?

    Answer: Force majeure clause

    The force majeure clause excuses a party's non-performance or delay when caused by extraordinary events beyond reasonable control, such as natural disasters.

  3. In the context of earned value management applied to contracts, what does a Schedule Performance Index (SPI) of 0.85 indicate?

    Answer: For every dollar of planned work, only $0.85 worth of work has been completed

    An SPI of 0.85 means the project is earning only 85 cents of value for every dollar of work that was scheduled, indicating the project is behind schedule.

  4. Which dispute resolution method is MOST appropriate when the parties want a binding decision without going to court, but by a neutral third party?

    Answer: Arbitration

    Arbitration produces a binding decision issued by a neutral arbitrator or panel, resolving disputes faster and less expensively than court litigation.

  5. A project manager receives a seller's invoice that includes costs not specified in the contract. Under a cost-reimbursable contract, the PM should FIRST:

    Answer: Review the contract's allowable, allocable, and reasonable cost criteria

    Cost-reimbursable contracts define allowable, allocable, and reasonable standards; these criteria determine whether disputed costs are legitimately chargeable.

  6. What is the PRIMARY advantage of using a Blanket Purchase Agreement (BPA) for recurring low-value procurement needs?

    Answer: It reduces administrative burden by establishing pre-negotiated terms for repeat purchases

    A BPA pre-establishes pricing, terms, and conditions for recurring purchases, streamlining the ordering process and reducing repetitive procurement paperwork.

  7. During contract negotiation, the project manager should ensure that the negotiated contract terms are consistent with which key project document?

    Answer: The project management plan

    The project management plan contains the scope, schedule, and cost baselines that contracted work must align with to ensure overall project objectives are met.