Project Management Fundamentals What is a Project ? Project is a temporary endeavor undertaken to create a unique product or service. Projects are unique. Projects are temporary in nature and have a definite beginning and ending date. Projects are completed when the project goals are achieved or it.s determined the project is no longer viable. A successful project is one that meets or exceeds the expectations of your stakeholders. How Unique ? Product characteristics are progressively elaborated. The product or service is different in some way from other product or services. How Temporary ? Has a definite beginning and end and not an ongoing effort. Ceases when objective has been attained. Team is disbanded upon project completion. Example Building a road is an example of a project. The process of building a road takes a finite amount of time, and produces a unique product. Operations on the other hand are repetitive. Generating bills every month, and broadcasting news everyday are examples of operations. Subprojects are components of a project that often contracted out. What is Project Management? Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. Project management is accomplished through the use of the processes such as:
Transcript
Project Management Fundamentals
What is a Project ?
Project is a temporary endeavor undertaken to create a unique product or service.
Projects are unique. Projects are temporary in nature and have a definite beginning and ending date. Projects are completed when the project goals are achieved or it.s determined the project is no
longer viable. A successful project is one that meets or exceeds the expectations of your stakeholders.
How Unique ?
Product characteristics are progressively elaborated. The product or service is different in some way from other product or services.
How Temporary ?
Has a definite beginning and end and not an ongoing effort. Ceases when objective has been attained. Team is disbanded upon project completion.
Example
Building a road is an example of a project. The process of building a road takes a finite amount of time, and produces a unique product.
Operations on the other hand are repetitive. Generating bills every month, and broadcasting news everyday are examples of operations.
Subprojects are components of a project that often contracted out.
What is Project Management?
Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.
Project management is accomplished through the use of the processes such as:
Project managers or the organization can divide projects into above phases to provide better management control with appropriate links to the ongoing operations of the performing organization. Collectively, these phases are known as the project life cycle which we would see in next chapter.
Project managers deliver projects while balancing the following constraints:
These all are so intertwined that a change in one will most often cause a change in at least one of the others
For example:
If time is extended, the cost of the project will increase. If time extended with the same cost then quality of the product will reduce. If scope is extended then cost and time will also extend.
Changes to any of these legs sets off a series of activities that are needed to integrate the change across the project.
What is Program Management ?
A program consists of a related group of projects and Program management is the process of managing multiple on going projects. An example would be that of designing, manufacturing and providing support infrastructure for an automobile make.
Program management involves centrally managing and coordinating groups of related projects to meet the objectives of the program.
In some cases Project Management is a subset of Program Management. The project manager may report to the program manager in such cases. A portfolio consists of multiple programs.
What is Portfolio Management ?
A portfolio is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives.Organizations manage their portfolios based on specific goals.
Senior managers or senior management teams typically take on the responsibility of portfolio management for an organization.
Portfolio management encompasses managing the collections of programs and projects in the portfolio. This includes weighing the value of each project, or potential project, against the portfolio's strategic objectives.
Portfolio management also concerns monitoring active projects for adherence to objectives, balancing the portfolio among the other investments of the organization, and assuring the efficient use of resources.
Why do we need Project Management?
Exponential expansion of human knowledge Global demand for goods and services Global competition Team is required to meet the demand with quality and standard. Improved control over the project Improved performance Improved budget and quality
Project Management Skills:
Many of the tools and techniques for managing projects are specific to project management. However, effective project management requires that the project management team acquire the following three dimensions of project management competencies:
Project Management Knowledge Competency: This refers to what the project management team knows about project management.
Project Management Performance Competency: This refers to what the project management team is able to do or accomplish while applying their project management knowledge.
Personal Competency: This refers to how the project management team behaves when performing the project or activity.
Interpersonal Skills Management:
The management of interpersonal relationships includes:
Effective communication: The exchange of information Influencing the organization: The ability to "get things done" Leadership: Developing a vision and strategy, and motivating people to achieve that vision and
strategy Motivation: Energizing people to achieve high levels of performance and to overcome barriers to
change Negotiation and conflict management: Conferring with others to come to terms with them or to
reach an agreement Decision Making: Ability to take decision independently. Political and cultural awareness: Important to handle various personal and professional issues. Team Building: Ability to create a productive team.
What is PMBOK ® Guide?
PMBOK ® Guide is the bible for Project Management. It stands for Project Management Body of Knowledge (PMBOK ® Guide) . There are nine knowledge areas defined in PMBOK ® Guide, which are as follows
Each Knowledge area has further Processes. There are a total of 42 processes. Each process has following three important parts.
Inputs Tools & Techniques Outputs
The PMBOK primarily covers each of the processes and its inputs, outputs and related tools and techniques.
Subsequent chapters will explain each process, its inputs, tools and techniques and outputs (ITTO) required.
Further the discipline of Project Management has five process groups.
These are:
Initiation Planning Execution Control Closure
Each process is part of one of these five project phases. It is important to know the process group for each of the 42 processes.
Here is a list of sample questions which would help you to understand the pattern of questions on Project Integration Management being asked in PMP Certification Exams.
You can check our complete set of PMP Mock Exams:
PMP Mock Exams I PMP Mock Exams II
(1) A planning method, which provides details of the work to accomplish, but also provide some preliminary description of the work to be done in later phases is called :
1. Progressive detailing 2. Rolling wave 3. Strategic 4. Operational
Answer:B
(2)Another name of strategic planning is:
1. Short term 2. Operational 3. Tactical 4. Top down
Answer: D
(3) The type of planning that is equated with more specific data or detailed in nature is called:
1. Strategic 2. Operational 3. Short term 4. Tactical
Answer: D
(4) One of the initial project documents, issued by senior management, which outlines the authority of the project manager, is called Project charter. As a seller, what other document can be used in this place:
(5) During the planning development process, at times it is necessary to make certain assumptions to enhance the project plan when the data is not available. In regard to making those assumptions, which one of the following is most true for project planning purposes?
1. The assumptions will be considered as true, real, or certain. 2. By making the assumption, it tends to reduce the project risk. 3. Project assumptions are based upon historical data used for the project. 4. Senior management predefines the budget constraints.
Answer:A
(6)A project planning methodology is any structured approach used to guide the project team during development of the project plan. What is an example of this methodology?
1. Standard forms or templates. 2. Upper management involvement 3. Functional work authorizations 4. Stakeholders skills
Answer: A
(7)The engineer of the project in the planning phase and makes a significant contribution to the technical scope. This is an example of what type of skill and knowledge?
(8)In a program or project plan, there are always revisions to account for new or missing data. Which one of the following provides the best reason for performing a revision of the plan?
1. A supplier has changed the way their product is delivered to your supplier 2. Project tasks are crashed to meet their end dates 3. Human resources will remain constant through out the project 4. Historical data on a similar project suggests that risk events are not included in the current plan.
Answer: B
(9) The project closing process is essential to overall project planning. What is considered one of the most important steps in closing the project?
1. Insuring that plans are produced to implement the project by phases. 2. Issuing work orders so that financial data can be collected. 3. Transition the lease of equipment to the owner 4. Satisfying the contractual obligations
Answer: D
(10)Each project phase is marked by completion of one or more:
1. Tasks. 2. Milestones 3. Deliverables 4. Life cycles
Answer: C
Here is a list of sample questions which would help you to understand the pattern of questions on Project Scope Management being asked in PMP Certification Exams.
You can check our complete set of PMP Mock Exams:
PMP Mock Exams I PMP Mock Exams II
(1)The Scope Statement should contain which of the following?
1. Project schedule 2. Project budget constraints 3. Summary of project tasks , deliverables and resources required 4. Project objectives
Answer:D
(2)The Scope Management Plan is included in which of the following documents.
1. Project Plan 2. The Work Breakdown Structure 3. The Scope Statement 4. Project Specifications
Answer: C
(3) Project Scope:
1. is of concern only at the start of the project 2. is mainly a problem to be handled by the change control procedures during the project execution
phase. 3. Should be managed and controlled from the project concept through close-out 4. is usually not a problem after the contract or other document authorizing the project has been
approved.
Answer: C
(4) The Project charter is created by:
1. The project manager 2. Upper management 3. The Vice President over a functional management group 4. The customer
Answer:B
(5)The project scope statement furnishes the basis for:
1. The project scope statement furnishes the basis for: 2. Provides links to the clients functional management groups 3. Allowing the project to move to the next phase 4. A way to provide updated information to the accounting department
Answer:A
(6) The Scope Baseline is:
1. the original description of the project's end results 2. a summary description of the project's original content and end product, including basic budgetary
and time constraint data 3. the original project budget and schedule 4. a and c
Answer: B
(7)A Project control system:
1. Monitors and controls the project's schedule, costs, scope, budgets etc 2. Is a mechanism which reacts to the current project status in order to endure accomplishment of
project objectives 3. Is only needed on large mega projects 4. Is a system for controlling and executing project documentation in an uniform and timely manner
Answer: A
(8)The PM distributed a document to the stakeholders, which described the software to be developed, the functionality, the users it would serve and the installation timeline. The document was an example of:
1. Product scope 2. Project scope 3. A combination of project and product scope 4. It was not complete enough to be either a product or a project scope document
Answer: D
(9)Each item of the Work Breakdown Structure is assigned a unique identifier. What is the name of this identifier?
1. Product ID number 2. Code of accounts 3. Quality inspection identifier 4. Project activity code
Answer: B
(10)When developing a project's scope statement, which of the following should not be included?
Here is a list of sample questions which would help you to understand the pattern of questions on Project Time Management being asked in PMP Certification Exams.
You can check our complete set of PMP Mock Exams:
PMP Mock Exams I PMP Mock Exams II
(1)Milestones established by the customer must be adhered to by:
1. Project manager 2. Functional managers 3. The customer 4. Both a and b
Answer:D
(2)The decision to request an increase the resources for a project is the responsibility of the:
1. Functional manager 2. Project manager 3. Director of project management 4. Customer
Answer: B
(3)In which of the following project phases is the project schedule developed?
1. Increase the time allowed on those tasks that have float. 2. Try to increase expenditures of time only those tasks that are behind schedule. 3. Replace those worker that are not performing up to par with the busy. 4. Increase work efforts on those tasks that are on the critical path.
Answer:D
(5)The project scope statement furnishes the basis for:
1. The project scope statement furnishes the basis for: 2. Provides links to the clients functional management groups 3. Allowing the project to move to the next phase 4. A way to provide updated information to the accounting department
Answer:A
(6)Which of the following is NOT one of the primary needs for good project scheduling?
1. Cutting costs and reducing time 2. Decreasing the time required for decision making 3. Eliminating idle time 4. Developing better trouble shooting procedures.
Answer: D
(7)The time necessary to complete a project is referred to as:
1. Implementation time 2. Life cycle 3. Operations cycle 4. Production cycle
Answer: B
(8)The successful project managers spend most of their time:
1. Planning with their personnel 2. Planning with the top management 3. Communication with the project team 4. Studying project results.
Answer: C
(9)Resource leveling attempts to :
1. Reduce resource requirements by smoothing out period-to period resource assignments. 2. Ensure that the budget abnormalities are overcome. 3. Reduce the amount of resources so that they can be shared with on other endeavors. 4. Increase the amount of the project manager's authority so that budget dollars can be appropriated.
Answer: A
(10)A prerequisite of effective time management is:
1. Knowing the dictated project completion date
2. Having the most advanced software package for project planning, scheduling and control 3. Having a good project WBS which identifies the major project deliverables and tasks, and the person
responsible for each of them 4. Having a well staffed scheduling department
Answer: A
Here is a list of sample questions which would help you to understand the pattern of questions on Project Cost Management being asked in PMP Certification Exams.
You can check our complete set of PMP Mock Exams:
PMP Mock Exams I PMP Mock Exams II
(1) Which type of project cost estimate is the most accurate?
1. Preliminary 2. Definitive 3. Order of magnitude 4. Conceptual
Answer:B
(2)Which of the following type of contracts is most preferable to the contractor doing the project work?
1. Cost plus fixed fee 2. Fixed price 3. Fixed price plus incentive free 4. B and C
Answer: A
(3)To assist in budget control, it is suggested that the estimate occur at the _____ ____ ______ level of the WBS
1. Highest 2. Lowest 3. Major work effort 4. Third
Answer: B
(4)Cost Variance (CV) is which of the following equations?
1. CV = BCWP - BCWS 2. CV = BCWP - ACWP 3. CV = SV / BCWS 4. A and c
Answer:B
(5)Cost budgeting can be best described by which of the following?
1. The process of developing the future trends along with the assessment of probabilities, uncertainties, and inflation that could occur during the project
2. The process of assembling and predicting costs of a project over its life cycle 3. The process of establishing budgets, standards, and a monitoring system by which the investment
cost of the project can be measured and managed 4. The process of gathering, accumulating, analyzing, reporting, and managing the costs on an on-
going basis
Answer:C
(6)Which of the following is a direct project cost?
1. Lighting and heating for the corporate office 2. Workers Compensation insurance 3. Piping for an irrigation project 4. A and B
Answer: C
(7)Cost controls can be best described by which of the following?
1. The process of developing the future trends along with the assessment of probabilities, uncertainties, and inflation that could occur during the project
2. The process of assembling and predicting costs of a project over its life cycle 3. The process of assembling and predicting costs of a project over its life cycle 4. The process of gathering, accumulating, analyzing, reporting, and managing the costs on an on-
going basis.
Answer: D
(8)The BCWS = $250, the ACWP = $350, and the BCWP = $200. Calculate the Cost Variance.
1. -$150 2. $150 3. -$50 4. $50
Answer: A
(9)One of the types of cost estimation is Order of Magnitude. This estimate:
1. is performed when detailed information is available 2. is performed when detailed information is available 3. is used in the beginning of the project conceptualization 4. Uses mostly information from past projects 5.
Answer: E
(10)Life Cycle Costing is a term that is:
1. used when making decisions between alternatives 2. employed principally by the government 3. typically used in the construction industry 4. not used within the government 5. A and B
Answer: E
Here is a list of sample questions which would help you to understand the pattern of questions on Project Quality Management being asked in PMP Certification Exams.
You can check our complete set of PMP Mock Exams:
PMP Mock Exams I PMP Mock Exams II
(1) Measured quality of a manufactured product is :
1. Always constant 2. Continually decreasing 3. Subject to a certain amount of variation 4. Continually increasing
Answer:C
(2)The process control charts are used:
1. to graph what typically focuses on the prevention of a problem 2. to detect the problem 3. to reject the problem 4. to determine the acceptability of the same
Answer: A
(3)When a record is made of an actual measured quality characteristic, such as a dimension expressed with thousands of an inch, the quality is said to be expressed by:
(4)Which of the following is the most efficient means of product quality inspection?
1. Acceptance sampling 2. 100% inspection 3. Variable sampling 4. a and c
Answer:C
(5)The primary components of the quality management function are :
1. quality planning 2. quality control and assurance 3. quantitative measurement 4. quantitative assessment of the project 5. a and b
Answer:E
(6)Setting the number of defects before the lot is rejected, is a direct responsibility of :
1. a functional worker 2. the project manager 3. management 4. the accounting department
Answer: C
(7)Which of the following has the greatest effect on product's reliability and maintenance characteristic?
1. conceptualization 2. product design 3. fabrication 4. a and b
Answer: D
(8)On a project the project manager should strive for a "Quality Level" that :
1. is the highest level possible 2. is as close to the project objectives as possible 3. represents the least cost to the project. 4. Exceeds the specified requirements of the project.
Answer: B
(9)Quality control in the final analysis is :
1. using the technical procedures of monitoring project results to decide if the outputs meet the requirements
2. a production system 3. an inspection system 4. fitness for purpose 5.
Answer: A
(10)Quality costs include :
1. the total of all costs incurred to assure the production and delivery of acceptable products and services.
2. Only costs classified as prevention, detection and corrective action. 3. Only the cost of scrap, rework due to defects, customer returns and warranty costs. 4. The expense of upper management
Answer: A
Here is a list of sample questions which would help you to understand the pattern of questions on Project Human Resource Management being asked in PMP Certification Exams.
You can check our complete set of PMP Mock Exams:
PMP Mock Exams I PMP Mock Exams II
(1)From HR perspective, the project manager's responsibility in the planning role includes:
1. Hiring the team 2. Developing work schedules 3. Forecasting 4. Feedback sessions 5. Both b and c
Answer:E
(2)Expert power is the power that comes from the amount of knowledge a person has obtained in a specific area. This type of power is:
1. Critical to a project manager because the PM has to have as much or more knowledge than any of the team members to make sure the project is completed successfully
2. Used by the PM to influence upper management and the critical stakeholders 3. Important if the project manager wants to maintain the respect of the project team 4. Used sparingly if at all by the PM because the PM cannot stay current on all areas of expertise and
also manage the project
Answer: D
(3)To successfully motivate a team in today's high tech - high demand environment, which motivational theories should the PM use to maintain a happy, productive team?
1. Expectancy and Theory X 2. Theory Y and Maslow's Hierarchy 3. Theory Y, Expectancy and Herzberg's Hygiene Factors 4. Herzberg's Hygiene Factors and Expectancy
Answer: C
(4)To successfully manage a project, the PM must play both a manager and leadership role. In the manager role the PM will do all but which of the following:
1. Develop procedures 2. Align people 3. Produce results for stakeholder 4. Focus on the organization and its structure 5. Both b and d
Answer:B
(5)To be successful in a functional organization, the PM must rely on:
1. Referent power 2. Formal authority 3. Informal power structure 4. Broad span of control 5. Both a and c
Answer:E
(6)Which form of power is the LEAST effective from the project manager's viewpoint in terms of influencing functional managers?
1. Formal power 2. Expert power
3. Penalty power 4. Referent power
Answer: C
(7)The Project manager should be able to fulfill the role of:
1. an integrator 2. a functional manager 3. a line manager 4. a sponsor
Answer: A
(8)The most successful project manager usually:
1. works their way up from assistants in the project office to full-fledged project managers, supplementing that experience with formal education.
2. Comes right from Harvard's MBA program into managing very large projects. 3. Is considered the technical expert of their field. 4. Has considerable experience as a functional manager before moving into the project management
arena.
Answer: A
(9) Which of the following is an important action that must be taken by top management when implementing project management in an organization?
1. Completely selling the project management concept to the entire organization. 2. Choice of the type of project manager. 3. Choice of the type of project organization to be utilized. 4. All of the above. 5.
Answer: D
(10)The project manager has the most authority in the __________________ type of organization.
Here is a list of sample questions which would help you to understand the pattern of questions on Project Communication Management being asked in PMP Certification Exams.
You can check our complete set of PMP Mock Exams:
PMP Mock Exams I PMP Mock Exams II
(1)Which of the following can cause a communication barrier?
1. Differing perceptions as to project goals and objectives 2. Insufficient action on the part of the project manager 3. Competition for facilities, equipment, material, manpower and other resources 4. Personality conflicts between managers and/ or other personnel 5. Resistance to change 6. All of the above
Answer:F
(2)Most of the project manager's external communication links consist of:
1. Written documents 2. Oral communication 3. Tactile contact 4. Informal contact
Answer: A
(3)The critical element in a project's communication system is the:
1. Is important only in projects involving telephone, television, radio, or newspaper production facilities and operations
2. Is not a big problem for people with normal speech, sight and hearing 3. Involves the originator, the message, the medium and the receiver 4. Preparing an agenda
Answer:C
(5) Truly effective communication:
1. Depends on using multiple channels 2. Depends on selecting the right method for each message and avoiding duplication, since everyone
is overloaded with information 3. Cannot depend solely on non-verbal signals which might be misunderstood 4. Can only be achieved by communication professional 5. a, b and c
Answer:E
(6)Methods of transmitting include:
1. Oral and written 2. Non-verbal/ visual 3. Tactile, involuntary and intuitive 4. All of the above
Answer: D
(7)A project management information system consists of:
1. A project management software package operating on appropriate computer facilities 2. Hardware, software, documents, and procedures 3. Automated and manual methods for gathering, recording, filtering, and dissemination of pertinent
information for members of a project team 4. All of the above
Answer: D
(8) The process of communication contains four major parts. Which part is the vehicle or method used to convey the message?
1. Communicator 2. Message 3. Medium 4. Recipient
Answer: C
(9) The contemporary view of conflict is that:
1. Conflict is bad 2. Conflict is caused by trouble makers 3. Conflict should be avoided 4. Conflict is often beneficial
Answer: D
(10)Approximately what percentage of the project manager's time is spent in some form of communication, such as: conferences, meetings, writing memos, reading and preparing reports, and talking with project team members, upper management, and all other stalk holders?
1. 10-20% 2. 50-70% 3. 75-90% 4. 21-45%
Answer: C
Here is a list of sample questions which would help you to understand the pattern of questions on Project Risk Management being asked in PMP Certification Exams.
You can check our complete set of PMP Mock Exams:
PMP Mock Exams I PMP Mock Exams II
(1)PMI states that there are two risk types : business and insurable. Which of the following are considered insurable risks?
1. Employee replacement costs 2. Opportunity costs 3. Sunken costs 4. Damage caused by a bonded contractor 5. A and D
Answer:F
(2) The Three attributes of project risk are _________, ___________ and ___________.
1. What might happen, who it happens to, and how much will it cost 2. Notification, frequency of relevant events, probability of occurrence 3. Risk cost, quality, control 4. Quality, risk planning, total number of risk events 5. Risk event, probability occurrence, the amount at stake
Answer: E
(3)A risk is defined as what might happened to the ____________ of the project
(5)A new project was initiated that involves new technology and subsequently has never been done before. What type of contract would to owner want to issue to reduce or eliminate as much risk as possible.
1. Firm fixed price 2. Cost plus fix fee 3. Cost plus incentive fee 4. Lump sum 5. A and D
Answer:E
(6)What is the most accurate method of obtaining project information that can reduce the amount of risk?
1. Observations on the current project 2. Determining the risk by using brainstorming techniques 3. The use of historical data from previous projects that were similar in nature 4. Sensitivity analysis 5. Delphi technique.
Answer: C
(7)Which of the following fit the category of external risks?
1. Project delays, budget under-runs, movement of city utilities 2. Regulatory, currency changes, taxation 3. Natural disasters, regulatory, design 4. Inflation, design, social impact
5. Political unrest, budget overruns, size and complexity of the project
Answer: B
(8)Decision trees are best used for :
1. Determining the interaction of the amount at stake and the expected value 2. Association of the probabilities with the risk events 3. An illustration of how to see the interactions between decisions and the associated events 4. A flow chart which determines the standard deviation of the risk event
Answer: C
(9)The total amount of risk that is calculated for a project is found by
1. Multiplying the sum of each the risk times the amount at stake 2. Calculating the cumulative sum of the probability for each risk and multiplying this value times the
consequence of occurrence of the risk events 3. Cannot be calculated since all risks are not know 4. The amount of project reserves available
Answer: B
(10)A situation in which one of two or more risk events will follow an act, but the precise nature of these events may not be known and the probabilities of their occurring cannot be objectively assigned, is the definition of
1. certainty 2. uncertainty 3. risk 4. risk adversity 5. None of the above.
Answer: B
Here is a list of sample questions which would help you to understand the pattern of questions on Project Procurement Management being asked in PMP Certification Exams.
You can check our complete set of PMP Mock Exams:
PMP Mock Exams I PMP Mock Exams II
(1)The fixed price contract is advantageous to the buyer because it:
1. requires extremely well defined specifications 2. requires formal procedures for scope changes 3. contractor assumes financial and technical risk 4. has a known cost
Answer:C
(2)The contract administration function includes:
1. funding management 2. managing relationships and interfaces 3. performance control 4. all of the above
Answer: D
(3)The major type(s) of standard warranty(ies) that are used in the business environment is(are):
1. express 2. implied 3. negotiated 4. a and b
Answer: D
(4)A Unit Price (UP) contract provides:
1. a reimbursement of allowable costs plus a fixed fee which is paid proportionately as the contract progresses
2. a reimbursement of allowable cost of services performed plus an agreed upon percentage of the estimated cost as profit
3. the supplier with a fixed price for delivered performance plus a predetermined fee for superior performance
4. a fixed price where the supplier agrees to furnish goods and services at unit rates and the final price is dependent on the quantities needed to carry out the work.
Answer:D
(5)Which phase of the Acquisition Process Cycle does source qualifications reside?
1. Pre-Award 2. Award 3. Post Award 4. Origination
Answer:B
(6)From a contract management perspective, the project manager must consider the:
1. acquisition process 2. contract administration 3. ecological environment 4. offer, acceptance, and consideration 5. a and b
Answer: E
(7) A performance bond should always provide what part of the contract value?
1. 10 percent 2. 25 percent 3. 50 percent 4. 100 percent 5. Normally a performance bond, depending upon the state, only stipulates that the contractor will
guarantee the work for a certain period of time.
Answer: D
(8)Which contract type places the most risk on the seller?
1. Cost plus percentage fee 2. Cost plus incentive fee 3. Cost plus fixed fee 4. Fixed price plus incentive fee 5. Firm fixed price
Answer: E
(9)What are the types of express guarantees?
1. Design/ mechanical 2. Field workmanship 3. Common Work 4. Length of service 5. a and b
Answer: E
(10)What is the last item a project manager must do to finalize project close-out?
1. Reassign the team 2. Contract completion 3. Archive the project records 4. Complete lessons learned 5. None of the above.
Answer: B
Ignore extra irrelevant info.
Words with Often, sometimes, may, generally and perhaps are correct
Words with Always, never, must and completely are incorrect
