Procurement and EVM Question

According to the project plan, a contractor is scheduled to deliver some software components today afternoon. A regular payment is due to be made to this contractor tomorrow.

You and your project team received a note this morning informing you that the software delivery will be delayed by 2 weeks.

What should you do right now?

 


A.   

 You should delay the payment also for 2 weeks.

B.  You must immediately find a different contractor.

C. You should conduct a meeting with the contractor to resolve the delivery issues before making the payment.

D. You should make the payment and reschedule the project plan. 

                

 

 

2. You found the following earned value analysis information for a project that was recently closed-out:

SPI = 0.7, CPI = 1.0

 


A.   

The project has been cancelled while it was executed. At that time the project was behind schedule and on budget.

B.   

The project's deliverables have all been finished. The project came in behind schedule but on budget.

C.   

The project's deliverables have all been finished. The project came in ahead of schedule but on budget.

D.   

The project's deliverables have all been finished. The project came in on schedule but over budget.

 

 

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 Source: Oliverlehmann free questions.

 For Question 1, Answer is  given as C but i thought stopping the payment is kind of breach of contract as it says its regular payment as that could be for already delivered work. I though Answer D made a bit of sense

 

For question 2.. answer is given as A.. I thought it as B. Not sure how it was concluded to be cancelled by the author...

Please clarify

Refer this link_

http://pmzilla.com/question-oliver-lehmann-wwwoliverlehmanncom-2

 

Q1

A. You should delay the payment also for 2 weeks.  

- definitely it is not mentioned in terms of contract. hence NO

 

B. You must immediately find a different contractor.  

- it is impossible and breech of contract hence No

 

C. You should conduct a meeting with the contractor to resolve the delivery issues before making the payment.   

Yes because - it is as per normal practice and it does not mean that you are holding payment, it may be just afteer meeting, it depends mutual discussion and conclution, it may be today if conditions directs.

 

D. You should make the payment and reschedule the project plan.   

I dont know the real terms , In Q content Nowhere it is written that it is an regular payment.hence No

 Pawar,,

 

Thats a very good insight about question 2 , concluding from SPI and CPI that its incomplete. It did not occur to me at all. Thanks for clearing it out.

 

I updated the question 1 . A part of the question was truncated when i posted.. Please look at it now and let me know if still think answer is not D based on the question now. Let me know if your there is a reason which superceds C over answer D

It is clear that the regular payment date was after a day of delivery , so suggetion C, is quite obvious, seems better than  D as surrendered blindly.

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