PMI-CAPM practice question 33 of 35

Which is an example of Administer Procurements?

Full set: 1,329 questions
Answer options
A: Negotiating the contract
B: Authorizing contractor work Correct answer
C: Developing the statement of work
D: Establishing evaluation criteria
Correct Answer:
B. Authorizing contractor work
Explanation

Administer Procurements (known as Control Procurements in the PMBOK® Guide – Sixth Edition) is the process of managing procurement relationships, monitoring contract performance, and making changes and corrections as required. A key activity within this process is ensuring the seller performs according to the contract. Authorizing the contractor's work to proceed as specified in the contract is a fundamental part of managing and directing the seller's performance during the project execution and monitoring phases. This action confirms that the project is ready for the seller to begin a specific part of the work, thereby administering the contract terms.

References

1. Project Management Institute. (2013). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition. Section 12.3, Administer Procurements, p. 377. The guide states this process includes "managing the procurement relationship and monitoring contract performance," which encompasses directing and authorizing the seller's work.

2. Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Section 12.2, Conduct Procurements, p. 482. This section details that activities like negotiation and contract finalization occur here, distinguishing it from contract administration.

3. Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Section 12.1, Plan Procurement Management, p. 474. This section lists procurement statement of work and source selection criteria as outputs, confirming these are planning activities.

4. Gubi, E. (2012). Project Procurement Management: A Guide to Effective Project-oriented Procurement. DTU Management Engineering. Technical University of Denmark. Report DTU-MAN-ME-2012-01, p. 21. The document describes contract administration as including "monitoring of the supplier’s performance, inspection and verification of deliverables, control of changes, and authorization of payments," which aligns with authorizing work.

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