Quiz – Procurement Contract Strategy

Question 1 of 6

1. Question

Fixed-price contracts, per the capsule, provide budget certainty but require:

Comprehensive specifications defined upfront

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No scope definition at all

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Unlimited scope changes

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Reimbursement of all actual costs

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Question 2 of 6

2. Question

Time-and-materials arrangements offer flexibility but come at the expense of:

Cost-monitoring effort

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Any need for a vendor

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Delivery of the product

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Budget certainty being guaranteed

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Question 3 of 6

3. Question

Hybrid models and performance-based contracting are used to:

Balance risk allocation, relationships, and value delivery

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Remove all vendor accountability

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Guarantee the lowest possible price only

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Avoid evaluating vendors

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Question 4 of 6

4. Question

Procurement strategy should be aligned primarily with the organization’s:

Risk tolerance

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Marketing calendar

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Office location

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Number of employees

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Question 5 of 6

5. Question

Match each contract approach to its trade-off.

Sort elements

Budget certainty requiring detailed specifications
Flexibility at the cost of monitoring effort
Balances risk, relationships, and value

Fixed-price contract

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Time-and-materials contract

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Performance-based contract

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Question 6 of 6

6. Question

According to the capsule, procurement decisions impact roughly what percentage of project success metrics? (number)

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