Another ques

You receive 25 computers from the seller but were expecting only 20. In looking at the contract, you see that it says "seller to provide 25 computers". What should you do FIRST?


 


1) Issue a change order


2) Return the extra 5 computers


3) Make payment for the 25 computers


4) Call the seller and ask for clarification


 


My answer was 3 since contract is always considered more binding.


The correct answer is 2 and below is the expalnation provided.


Look again at the question. Ask yourself "How many computers does the contract say?" Did you read it as twenty? This is an example of a conflict in the contract. The intent of the contract can be determined by remembering that words are more binding than numbers. Therefore, you should return the five extra computers. 


Pls help.

The explanation given is right to the above question but the main problem this question is not related to PMBOK.


As per PMBOK project managers are integral part of Procurment process but Contracts and teaming agreements are prepared by  Subject Matter Experts which involves the services of legal staff to assist with unique procurement issues, terms and conditions.


Since the contract is being prepared based on the Procurement SOW by legal experts which is verified by both the parties before signing off the contract as the contract is binding to both the parties.


In this scenario your answer is right and as per the above questioni the expectation of 20 computers by PM might be wrong as contract was made based on Procurement SOW and even if it was right and there is a conflict in contract and changes are to be made it should go to Contract change control system.


if there is a conflict you can negotiate with the vendor/seller or there can be some type of arbitration or mediation and still there is conflict then litigation in court will be last option and as per the ques and available options, option 2 is the best to avoid litigation and since words are binding than numbers it is advisable to returm the 5 computers. (But as per PMBOK its the role of SME to prepare the contract and they will make sure everything is right and it is the work of procurment Department and PM always takes Exeprt Judgment in this issues).


So Sumedha be relaxed this questions are really good for our understanding but as for the PMP exam i would recommend not to refer this type of questions for your prepration.


I would recommend you try PMstudy exam questions, Headfirst PMP exam ques, PM Exam simulator where almost all questions are near to the actual exam. Where you will

admin's picture

I am confused, contract says 20 or 25. If there are 5 extra computers you would just return them.

Contract say's "Seller to provide 25 Computers" and eventually end of contract Seller provides 25 Computers.


Regards


Satish

the question is not correct. I found a similar question with;

You receive 25 computers from the seller but were expecting only 20. In looking at the contract, you see that it says "seller to provide twenty(25) computers". What should you do FIRST?

 

indiageez's picture

 In my ipinion . do not consider these kind of contradictory question which has no proper information to understand. It will dilute our fundamental understanding of pmbk concepts. PMP exam does not have these kind of questions but rather with proper engligh twisted to test your fundamentals.

In practice, I should have said 1.

Since payment happens later on (usually 30 days) and if the supplier accept it, you could wait for credit mome and compensate the payments => just pay 20.

If he refuses, ok, pay for 25.

It's not claiming to pay for 25, just not the FIRST thing to do.

 

This question is purely theorical.

From my experience with vendors,

Choice 1.  Need to issue a change request first.

If its  25 in contract then its 25. Period. Doesn't matter if I "expect/think/dream/wish" of 20 or 200.

If the goods are returned in variance with terms of the contract, the vendor is in his/her rights to claim damages.

 

I think these type of questions do considerable damage to candidates preparation.