Question - Procurement management

The contract does not specify how overcharges from the vendor should be handled on a Cost Reimbursable contract. The buyer receives an invoice from the vendor that has questionable charges. The buyer should:

a. Pay the invoice 
b. Initiate a claim against the vendor via the claims administration process 
c. Consult the legal team for remediation options
d. Cancel the contract for convenience

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C- Consult the legal team.

Correct answer is B.


Any disagreement between parties in contract is settled by claims administration process.


Answer is B. Option C and D is part of B and as per PMBOK it is last option. So initiate claim administration process (infact it is T&T) to resolve the claim conflict.

My take would be Option A. The "first" step would be to pay.

Rest of the options are steps to be taken after that is done.