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Procurement & SOW Development Flashcards

7 cards from real PMI 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 & SOW Development flashcards as text

  1. A SOW states the seller must deliver a completed bridge 'fit for vehicular traffic.' This is an example of which type of specification?

    Answer: Functional specification

    A functional specification describes what the deliverable must do (its function) rather than prescribing exactly how to build it.

  2. Which procurement document is used when the buyer wants the market to propose innovative solutions and the buyer doesn't prescribe the approach?

    Answer: Request for Proposal (RFP)

    An RFP is appropriate when the buyer seeks creative technical solutions and the seller has discretion in proposing the approach to meet the stated objectives.

  3. A project manager is conducting a make-or-buy analysis. Which factor most strongly supports the 'make' decision?

    Answer: The work requires proprietary processes or sensitive intellectual property

    When the work involves proprietary processes or sensitive IP, making internally protects competitive advantage and prevents disclosure to external parties.

  4. A T&M contract specifies a 'not-to-exceed' (NTE) ceiling. What is the purpose of this ceiling?

    Answer: To limit the buyer's total financial exposure

    An NTE clause caps the buyer's maximum obligation, protecting against cost overruns while still allowing flexibility in time and materials.

  5. When should the project manager update the procurement management plan?

    Answer: Whenever procurement-related changes are approved through integrated change control

    The procurement management plan is a living document updated whenever approved changes affect procurement strategy, contract types, or vendor management approaches.

  6. A seller submits a claim for additional compensation due to differing site conditions discovered during excavation. Under which contract clause would this claim be evaluated?

    Answer: Differing site conditions clause

    A differing site conditions clause addresses compensation when actual subsurface or physical conditions differ materially from what was indicated in the contract documents.

  7. A project manager wants to minimize the risk that a seller will submit a lowball bid and then claim extras. Which SOW strategy best mitigates this risk?

    Answer: Writing clear, detailed, unambiguous acceptance criteria and scope boundaries

    Precise acceptance criteria and explicit scope boundaries reduce ambiguity that sellers exploit to justify change orders and extra claims.