Ch. 12 - Project Procurement Flashcards by Brian Weldon - Brainscape

11/2/21, 1:26 PM Ch.
12: Project Procurement Flashcards by Brian Weldon | Brainscape
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11/2/21, 1:26 PM Ch. 12: Project Procurement Flashcards by Brian Weldon | Brainscape
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Ch. 12: Project Procurement Flashcards Preview

PMP Exam > Ch. 12: Project Procurement > Flashcards
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Flashcards in Ch. 12: Project Procurement Deck (31)
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1
From seller to buyer. Price is the determining factor in the decision-

making process.
Bid
A meeting of all the project's potential vendors to clarify the contract

statement work and the details of the contracted work.
Bidder conference
These are disagreements between the buyer and the seller, usually
centering on a change, who did the change, and even if a change has
occurred. Claims are also called disputes and appeals, and are
monitored and controlled through the project in accordance with the
contract terms.
Claims
A contract is a formal agreement between the buyer and the seller.

Contracts can be oral or written—though written is preferred.
Contract
This defines the procedures for how the contract may be changed. The
process for changing the contract includes the forms; documented
communications; tracking; conditions within the project, business, or
marketplace that justify the needed change; dispute resolution
procedures; and the procedures for getting the changes approved
within the performing organization.
Contract change control system
This document requires that the seller fully describe the work to be
completed and/or the product to be supplied. The SOW becomes part
of the contract between the buyer and the seller.
Contract statement of work (SOW)
A contract that requires the buyer to pay for the cost of the goods and
services procured
plus a fixed fee for the contracted work. The buyer assumes the risk of
a cost overrun.
Cost plus fixed fee contract
A contract type that requires the buyer to pay a cost for the procured
work, plus an incentive fee,
or a bonus, for the work if terms and conditions are met.

Cost plus incentive fee
A contract that requires the buyer to pay for the costs of the goods and
services procured
plus a percentage of the costs. The buyer assumes all of the risks for
cost overruns.
Cost plus percentage of costs
10
These are costs incurred by the project in order for the project to
exist. Examples include equipment needed to complete the project
work, salaries of the project team, and other expenses tied directly to
the project's existence.
Direct costs
11
Also known as firm fixed-price and lump-sum contracts, these are

agreements that define a total
price for the product the seller is to provide.

Fixed-price contracts
12
An "act of God" that may have a negative impact on the project;

consider fire, hurricanes, tornados, and
earthquakes.
Force majeure
13
These estimates are often referred to as "should cost" estimates. They

are created by the
performing organization or outside experts to predict what the cost of

the procured product should be.
Independent estimates
14
These are costs attributed to the cost of doing business. Examples

include utilities, office space, and other overhead costs.
Indirect costs
15
From buyer to seller. Requests the seller to provide a price for the
procured product or service.
Invitation for bid (IFB)
16
A letter contract allows the vendor to begin working on the project

immediately. It is often used as a stopgap solution.
Letter contract
17
A letter of intent is not a contract, but a letter stating that the buyer is
intending to create a contractual relationship with the seller.
Letter of intent
18
A process in which the project management team determines the cost

effectiveness, benefits, and
feasibility of making a product or buying it from a vendor.

Make-or-buy decision
19
The contractual relationship between the buyer and the seller is often
considered confidential and secret.
Privity
20
A project management subsidiary plan that documents the decisions

made in the
procurement planning processes.
Procurement management plan
21
A process to identify which parts of the project warrant procurement

from a vendor by the buyer.
Procurement planning
22
A document the seller provides to the buyer. The proposal includes

more than just a fee for the proposed work; it also includes
information on the vendor's skills, the vendor's reputations, and ideas
on how the vendor can complete the contracted work for the buyer.
Proposal
23
A purchase order is a form of a unilateral contract that the buyer

provides to the vendor showing
that the purchase has been approved by the buyer's organization.

Purchase order (PO)
24
From seller to buyer. Price is the determining factor in the decision-

making process.
Quotation
25
From buyer to seller. Requests the seller to provide a proposal to

complete the procured work or to provide the procured product.
Request for proposal (RFP)
26
From buyer to seller. Requests the seller to provide a price for the
procured product or service.
Request for quote (RFQ)
27
When the project management team decides to use transference to

respond to a risk, a risk-related contractual agreement is created
between the buyer and the seller.
Risk-related contractual agreements
28
A tool that filters or screens out vendors that don't qualify for the
contract.
Screening system
29
These are used by organizations to rate prior experience with each

vendor that it has worked with
in the past. The seller rating system can track performance, quality
ratings, delivery, and even contract compliance.
Seller rating systems
30
A contract type in which the buyer pays for the time and materials for
the procured work.
This is a simple contract, usually for smaller procurement conditions.

These contract types require a not-to-exceed clause,
or the buyer assumes the risk for cost overruns.

Time and materials contract
31
This takes out the personal preferences of the decision-maker in the

organization to ensure that the best seller is awarded the contract.
Weights are assigned to the values of the proposals, and each proposal
is scored.
Weighting system
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Decks in PMP Exam Class (26):
Ch. 2: Managing A Project

Ch. 1: Questions
Ch. 2: Questions
Ch. 3: Examining The Project Processes
Ch. 3: Questions
Ch. 4: Project Integration
Ch. 4: Questions
Ch. 5: Managing The Project Scope
Ch. 5: Questions
Ch. 6: Managing Project Time
Ch. 6: Questions
Ch. 7: Managing Project Cost
Ch. 7: Questions
Ch. 8: Managing Project Quality
Ch. 8: Questions
Ch. 9: Managing Human Resources
Ch. 9: Questions
Ch. 10: Managing Project Communications

Ch. 10: Questions
Ch. 11: Managing Project Risk
Ch. 11: Questions
Ch. 12: Project Procurement
Ch. 12: Questions
Ch. 13: Code Of Conduct
Ch. 13: Questions
Ch. 1: Preparing For Exam
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11/2/21, 1:26 PM Ch.

12: Project Procurement Flashcards by Brian Weldon | Brainscape

e.g. MCAT, pharma, bar exam SearchGo

Brainscape's Knowledge GenomeTM

Medical & Nursing

Humanities & Social Studies

Health & Fitness

Business & Finance

Technology & Engineering

Food & Beverage

See full index

Ch. 12: Project Procurement Flashcards Preview

From seller to buyer. Price is the determining factor in the decision-

A meeting of all the project's potential vendors to clarify the contract

A contract is a formal agreement between the buyer and the seller.

or a bonus, for the work if terms and conditions are met.

Also known as firm fixed-price and lump-sum contracts, these are

price for the product the seller is to provide.

An "act of God" that may have a negative impact on the project;

These estimates are often referred to as "should cost" estimates. They

performing organization or outside experts to predict what the cost of

These are costs attributed to the cost of doing business. Examples

A letter contract allows the vendor to begin working on the project

A process in which the project management team determines the cost

feasibility of making a product or buying it from a vendor.

A project management subsidiary plan that documents the decisions

A process to identify which parts of the project warrant procurement

A document the seller provides to the buyer. The proposal includes

A purchase order is a form of a unilateral contract that the buyer

that the purchase has been approved by the buyer's organization.

From seller to buyer. Price is the determining factor in the decision-

From buyer to seller. Requests the seller to provide a proposal to

When the project management team decides to use transference to

These are used by organizations to rate prior experience with each

This is a simple contract, usually for smaller procurement conditions.

or the buyer assumes the risk for cost overruns.

This takes out the personal preferences of the decision-maker in the

e.g. MCAT, pharma, bar exam SearchGo

Decks in PMP Exam Class (26):

Ch. 2: Managing A Project

Ch. 10: Managing Project Communications

Medical & Nursing

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