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PMP Practice QuestionsProcurement and Contract Management
Process Domain

Procurement and Contract Management PMP Practice Questions

Test yourself with 10 free, scenario-based PMP practice questions on procurement and contract management, drawn from the Process domain of the exam and aligned to PMBOK 8. Work through each scenario before revealing the answer — every question includes an explanation of why the correct choice is right. For randomized, interactive practice across all topics, use the practice question tool.

Question 1 of 10

A project manager is dealing with a situation where requirements are still evolving and the buyer wants flexibility with some cost control. What should happen FIRST?

  1. A.Choose the fastest procurement option and negotiate details later — accelerating contract award reduces the schedule risk associated with delayed execution more than optimizing contract terms.
  2. B.Defer all significant decisions to the vendor — their domain expertise makes them better qualified to determine how to meet the project's technical requirements than the buying organization.
  3. C.Use the procurement strategy, contract type, and statement of work that best fit the risk, uncertainty, and performance incentives of the situation.
  4. D.Avoid documenting assumptions to preserve negotiation flexibility — explicit assumptions give vendors opportunities to price against them and reduce the buyer's room to maneuver.
Show answer and explanation

Correct answer: C

Procurement choices should be aligned to uncertainty, risk allocation, and desired incentives. The best first step is to match the sourcing and contract approach to the situation rather than optimizing only for speed or deferring key terms.

Question 2 of 10

A project manager is dealing with a situation where scope is well defined and the buyer wants price certainty. What should happen FIRST?

  1. A.Choose the fastest procurement option and negotiate details later — accelerating contract award reduces the schedule risk associated with delayed execution more than optimizing contract terms.
  2. B.Defer all significant decisions to the vendor — their domain expertise makes them better qualified to determine how to meet the project's technical requirements than the buying organization.
  3. C.Avoid documenting assumptions to preserve negotiation flexibility — explicit assumptions give vendors opportunities to price against them and reduce the buyer's room to maneuver.
  4. D.Use the procurement strategy, contract type, and statement of work that best fit the risk, uncertainty, and performance incentives of the situation.
Show answer and explanation

Correct answer: D

Procurement choices should be aligned to uncertainty, risk allocation, and desired incentives. The best first step is to match the sourcing and contract approach to the situation rather than optimizing only for speed or deferring key terms.

Question 3 of 10

A project manager is dealing with a situation where the seller should be rewarded for early delivery and meeting quality targets. What should happen FIRST?

  1. A.Use the procurement strategy, contract type, and statement of work that best fit the risk, uncertainty, and performance incentives of the situation.
  2. B.Choose the fastest procurement option and negotiate details later — accelerating contract award reduces the schedule risk associated with delayed execution more than optimizing contract terms.
  3. C.Defer all significant decisions to the vendor — their domain expertise makes them better qualified to determine how to meet the project's technical requirements than the buying organization.
  4. D.Avoid documenting assumptions to preserve negotiation flexibility — explicit assumptions give vendors opportunities to price against them and reduce the buyer's room to maneuver.
Show answer and explanation

Correct answer: A

Procurement choices should be aligned to uncertainty, risk allocation, and desired incentives. The best first step is to match the sourcing and contract approach to the situation rather than optimizing only for speed or deferring key terms.

Question 4 of 10

A project manager is dealing with a situation where specialized consultants are needed for a short duration with uncertain exact effort. What should happen FIRST?

  1. A.Choose the fastest procurement option and negotiate details later — accelerating contract award reduces the schedule risk associated with delayed execution more than optimizing contract terms.
  2. B.Use the procurement strategy, contract type, and statement of work that best fit the risk, uncertainty, and performance incentives of the situation.
  3. C.Defer all significant decisions to the vendor — their domain expertise makes them better qualified to determine how to meet the project's technical requirements than the buying organization.
  4. D.Avoid documenting assumptions to preserve negotiation flexibility — explicit assumptions give vendors opportunities to price against them and reduce the buyer's room to maneuver.
Show answer and explanation

Correct answer: B

Procurement choices should be aligned to uncertainty, risk allocation, and desired incentives. The best first step is to match the sourcing and contract approach to the situation rather than optimizing only for speed or deferring key terms.

Question 5 of 10

A project manager is dealing with a situation where the work is research-heavy and outcomes are uncertain. What should happen FIRST?

  1. A.Choose the fastest procurement option and negotiate details later — accelerating contract award reduces the schedule risk associated with delayed execution more than optimizing contract terms.
  2. B.Defer all significant decisions to the vendor — their domain expertise makes them better qualified to determine how to meet the project's technical requirements than the buying organization.
  3. C.Use the procurement strategy, contract type, and statement of work that best fit the risk, uncertainty, and performance incentives of the situation.
  4. D.Avoid documenting assumptions to preserve negotiation flexibility — explicit assumptions give vendors opportunities to price against them and reduce the buyer's room to maneuver.
Show answer and explanation

Correct answer: C

Procurement choices should be aligned to uncertainty, risk allocation, and desired incentives. The best first step is to match the sourcing and contract approach to the situation rather than optimizing only for speed or deferring key terms.

Question 6 of 10

A project manager is dealing with a situation where a vendor is missing obligations and disputes the statement of work interpretation. What should happen FIRST?

  1. A.Choose the fastest procurement option and negotiate details later — accelerating contract award reduces the schedule risk associated with delayed execution more than optimizing contract terms.
  2. B.Defer all significant decisions to the vendor — their domain expertise makes them better qualified to determine how to meet the project's technical requirements than the buying organization.
  3. C.Avoid documenting assumptions to preserve negotiation flexibility — explicit assumptions give vendors opportunities to price against them and reduce the buyer's room to maneuver.
  4. D.Use the procurement strategy, contract type, and statement of work that best fit the risk, uncertainty, and performance incentives of the situation.
Show answer and explanation

Correct answer: D

Procurement choices should be aligned to uncertainty, risk allocation, and desired incentives. The best first step is to match the sourcing and contract approach to the situation rather than optimizing only for speed or deferring key terms.

Question 7 of 10

A project manager is dealing with a situation where market capacity is limited and only a few qualified suppliers exist. What should happen FIRST?

  1. A.Use the procurement strategy, contract type, and statement of work that best fit the risk, uncertainty, and performance incentives of the situation.
  2. B.Choose the fastest procurement option and negotiate details later — accelerating contract award reduces the schedule risk associated with delayed execution more than optimizing contract terms.
  3. C.Defer all significant decisions to the vendor — their domain expertise makes them better qualified to determine how to meet the project's technical requirements than the buying organization.
  4. D.Avoid documenting assumptions to preserve negotiation flexibility — explicit assumptions give vendors opportunities to price against them and reduce the buyer's room to maneuver.
Show answer and explanation

Correct answer: A

Procurement choices should be aligned to uncertainty, risk allocation, and desired incentives. The best first step is to match the sourcing and contract approach to the situation rather than optimizing only for speed or deferring key terms.

Question 8 of 10

A project manager is dealing with a situation where the team needs to decide whether to build internally or outsource a component. What should happen FIRST?

  1. A.Choose the fastest procurement option and negotiate details later — accelerating contract award reduces the schedule risk associated with delayed execution more than optimizing contract terms.
  2. B.Use the procurement strategy, contract type, and statement of work that best fit the risk, uncertainty, and performance incentives of the situation.
  3. C.Defer all significant decisions to the vendor — their domain expertise makes them better qualified to determine how to meet the project's technical requirements than the buying organization.
  4. D.Avoid documenting assumptions to preserve negotiation flexibility — explicit assumptions give vendors opportunities to price against them and reduce the buyer's room to maneuver.
Show answer and explanation

Correct answer: B

Procurement choices should be aligned to uncertainty, risk allocation, and desired incentives. The best first step is to match the sourcing and contract approach to the situation rather than optimizing only for speed or deferring key terms.

Question 9 of 10

A project manager is dealing with a situation where a sole-source purchase is being considered for a critical platform. What should happen FIRST?

  1. A.Choose the fastest procurement option and negotiate details later — accelerating contract award reduces the schedule risk associated with delayed execution more than optimizing contract terms.
  2. B.Defer all significant decisions to the vendor — their domain expertise makes them better qualified to determine how to meet the project's technical requirements than the buying organization.
  3. C.Use the procurement strategy, contract type, and statement of work that best fit the risk, uncertainty, and performance incentives of the situation.
  4. D.Avoid documenting assumptions to preserve negotiation flexibility — explicit assumptions give vendors opportunities to price against them and reduce the buyer's room to maneuver.
Show answer and explanation

Correct answer: C

Procurement choices should be aligned to uncertainty, risk allocation, and desired incentives. The best first step is to match the sourcing and contract approach to the situation rather than optimizing only for speed or deferring key terms.

Question 10 of 10

A project manager is dealing with a situation where the contract includes deliverables that now need an approved change. What should happen FIRST?

  1. A.Choose the fastest procurement option and negotiate details later — accelerating contract award reduces the schedule risk associated with delayed execution more than optimizing contract terms.
  2. B.Defer all significant decisions to the vendor — their domain expertise makes them better qualified to determine how to meet the project's technical requirements than the buying organization.
  3. C.Avoid documenting assumptions to preserve negotiation flexibility — explicit assumptions give vendors opportunities to price against them and reduce the buyer's room to maneuver.
  4. D.Use the procurement strategy, contract type, and statement of work that best fit the risk, uncertainty, and performance incentives of the situation.
Show answer and explanation

Correct answer: D

Procurement choices should be aligned to uncertainty, risk allocation, and desired incentives. The best first step is to match the sourcing and contract approach to the situation rather than optimizing only for speed or deferring key terms.

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