Hello everyone! Here is this week's free PMP exam sample question from the PM Exam Simulator.
You are managing a construction project for a client and have subcontracted out some of the project work. You negotiated different contracts with the subcontractors, which include various activities and resources, such as site excavation, raw material supplies, and labor workforce. Each of these contract life cycles can end during which phase of your project life cycle?
A. The Closing phase of the project life cycle
B. The Executing phase of the project life cycle
C. The Monitoring and Controlling phase of the project
D. Each contract life cycle can end during any project life cycle phase
HINT: The life span of a contract life cycle depends upon the nature of the work involved not on the entire project work.
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Answer and Explanation:
The correct answer is D.
A complex project can involve managing multiple contracts or subcontracts simultaneously or in sequence. In such cases, each contract life cycle can end during any phase of the project life cycle. The buyer-seller relationship can exist at many levels on any one project and between organizations internal to and external to the acquiring organization.