TABLE OF CONTENTS Project procurement management questions on the PMP certification exam tend to be more process oriented than legally focused. You do not need to know any country's specific legal code; however, the nature of many of the questions requires an understanding of United States contract law. In the United States, a contract is a formal agreement, all changes must be in writing and formally controlled and a court system is used for handling disputes. You must have a firm understanding of the procurement process in order to answer these questions accurately.
| Exam Tip | PMI discusses procurement management from the perspective of the buyer in the buyer-seller relationship. The seller is external to the buyer's organization. The type, terms and conditions of the contract become a key input in the contract administration process. Memorize the key contract types Cost Reimbursable, Fixed Price and Time and Material and who bears the burden of risk in each type of contract. |
You must know the basic differences between the primary categories of contracts (cost reimbursable, fixed price and time and material) and the risks inherent in each category for both the buyer and the seller. Several questions will also test your knowledge of various contract types within each category. International contracting is also within the limits of exam questions; the timing of foreign currency exchange and duty on goods delivered to foreign countries may also come up.
The 6 processes of procurement management:
Plan Purchases and...
