Please help From PMStudy.com

Submitted by mohanna81 on Mon, 06/25/2012 - 16:17
  Which of the following should you (the buyer) pay attention to when you administer a contract?
 
 
  Choice 1 Ensure that contractual obligations are met.
 
  Choice 2 Apply appropriate project management processes to the contractual relationship and integrate the outputs from these processes to the overall management of the project.
 
  Choice 3 Monitor payments to the seller.
 
  Choice 4 Perform regular procurement audits.
 
 
  Correct Choice : 4
 
  Justification :
 
  A procurement audit is a structured review of the procurement process originating from Plan Procurements process through Administer Procurements process. This is one of the tools and techniques used in Close Procurements process.

I think the answer should be 3, In the answer he is talking about closing T&T while he is asking about M&C process.

 

Please help and thanks in advance

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krantikumar50

Mon, 06/25/2012 - 16:55

I think 4 is true since Inspection and Audits are 1 of 7 T&Ts of Procurement Audit. The other six are: (1) CCCS or Contract Change Control System, (2) Procurement Performance reviews, (3) Performance Reporting, (4) Payment System, (5) Claims Administration, (6) RMS or record management system.


 


Now, Mohanna81, if you see through all the 7 T&Ts, you may realise that option 4 does make sense. The confusion here is the proc auditing which is a definite part of close procurement. The auditing in closed procurement is on which lesson learnt are made and what to do and what not to do on other or forthcoming projects are made whereas in Admin Procurement the auditing is more on the performance pertaining to the ongoing work!


 


I would have gone with 1 but now after knowing ITTOs a bit, I concur with PMStudy and would go with 4. In fact, we may expect some more definite and apt light on it from SS (Saket Sir) soon!


 


Warmly, KK.....

mohanna81

Mon, 06/25/2012 - 18:02

Thanks that is good but the exp. from pmstudy wasn't :)

saket_pmp

Mon, 06/25/2012 - 18:08

Here is the justification I would give to support choice 4.


Choice 1:  Ensure that contractual obligations are met. 
Why so late in Closing Process Group? Its time to finalize contractual obligations and not ensuring things. ---- Choice Rejected


Choice 2: Apply appropriate project management processes to the contractual relationship and integrate the outputs from these processes to the overall management of the project. 
Closing Process Group assumes that a formal contractual relationship has been done. This does not need to be done so late i.e. during administer a contract ---- Choice Rejected


Choice 3: Monitor payments to the seller. 
Administer Procurements also has a financial management component that involves monitoring payments to the seller. This could be true, but the key here is “financial management component”. Always think the question from Project Management perspective. Its might not be the duty of project manager as a whole to be accountable for every financial management, isn’t it? Financial accountability equally lies to account department stakeholders and not just the PM. So this choice is right but not a strong eligible one.


Choice 4:  Perform regular procurement audits.
A procurement audit is a structured review of the procurement process originating from the Plan Procurements process through Administer Procurements. This is the duty of project manager and he cannot escape from its accountability. So this choice stands strong.


I hope you will like my justifications.


Saket, PMP
 

krantikumar50

Mon, 06/25/2012 - 18:20

Friends,


 


This is the difference between the Master and the Apprentice


 


KK....

Prakash999

Thu, 12/27/2012 - 06:36

i just checked pmbok, and all of 1,2 and 3 options are mentioned to be done during admin procurements, except 4. 4 is to be done during close procurements.

however, the question seems to ask what needs to be done during admin procurements, and the audit focus during admin procuremnets is different from audit focus during close procurements,

can someone please clarify ? 

Prakash999

Thu, 12/27/2012 - 06:36

i just checked pmbok, and all of 1,2 and 3 options are mentioned to be done during admin procurements, except 4. 4 is to be done during close procurements.

however, the question seems to ask what needs to be done during admin procurements, and the audit focus during admin procuremnets is different from audit focus during close procurements,

can someone please clarify ? 

sunitaPMP

Thu, 12/27/2012 - 19:59

Agree with krantikumar50 .Inspection and audit is a TT for adm procurement.

sspawar

Fri, 12/28/2012 - 04:34

My view is different :


Which of the following should you (the buyer) pay attention to when you administer a contract?


This question is from PMSTUDY, and there answer is - D, with explanation, and mostly people  are agree on that option.


Though This question has been asked several  times by different aspirants with a certain interval within a year, because they feel that option 4 is not a correct answer.


I feel that option one is perfect answer.


why


As a Buyer (you ) - Inspection and audit is one tool, that has to be fulfilled, with other tools (as described by kk) which are described there. I asked a question here- Should you as a Buyer  not pay attention on remaining actions (responsibilities).


Ans: No we should pay attention in all respect for all others too of Administer Procurement,


So option 1, is comprising this answer-  insure that contractual obligation should met. (it is a line of PMBOK in Administer Procurement for buyer as well for seller.


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option 4 - regular procurement audit ---- if I take only term  Procurement Audit - its purpose is different and very little part of Adm Pro, because it is a tool of close procurement , and performed from plan procurement to close procurement through admin procurement. and its function is to assess success and failure. (it is given in PMBOK)


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http://pmzilla.com/pmp-proc-question -- in this post, in my reply  -- one correction, in place of execution and conduct procurement- please read M&C and Admin Procure. But the main content regarding asked subject, is true and can be reviewed.


http://pmzilla.com/pmstudy-q-need-explanation-please


 

Prakash999

Fri, 12/28/2012 - 04:59

dear @sspawar

i agree with what you stated. i've picked choice 1 as well., which is the BEST option ., and in my view 4 is ruled out.  looking at the framing of the question - 1,2,3 are all good for Admin Procurement, and 1 is best among them. i would probbaly think the question was trying to ask about close procurements rather than admin procurements, which fits for option 4. 

sunitaPMP

Fri, 12/28/2012 - 06:26

option1 1 "Ensure that contractual obligations are met" also need attention from seller side ,question asks from buyer side..so i would not choose option1