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TOPIC: Please help understand this procurement change question - i cant seem to get the logic right

Please help understand this procurement change question - i cant seem to get the logic right 4 years 2 months ago #11203

  • mavs19
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The Question is:

You are assigned as the project manager to a project which is executed for a customer under FP contract. Your customer informed you this morning that they insist on certain "refinements" of the project scope.
You agree that the requested actions make really sense to the project, but believe that they constitute a major change increasing the project scope. What should you do next?

1. Accept the request of the customer. Diligently document the additional costs and working hours spent by yourself and the team on the implementation of the change and invoice these to the customer at appropriate rates.
2. Perform earned value analysis to assess the current status of the project and get all the numbers you need to communicate the case to the change control board which then will have to make the best decision regarding the customer request.
3. Check the contract, the project charter, the scope statement and other documents related to the project and the contract. Implement ADR (alternative dispute resolution) procedures if the conflict cannot be resolved otherwise.
4. Talk to the project sales department and find a joint solution with them how to best reject the request considering the commercial and strategic value of the customer to the organization you are working for


I feel that the answer should be 2, when the customer recommends a change we should do the analysis and then present the findings to the CCB as part of PICC process. Even if this is a fixed contract, any changes to the fixed contract should go through CCB and the contractor (in this case we are seller) can charge more if the changes to scope are accepted. The correct answer as per Oliver is (3). Does this mean that in a fixed price contract changes to scope will not even go to the CCB even if the the buyer is ready to pay more when the change gets accepted. ?

Please help understand this procurement change question - i cant seem to get the logic right 4 years 1 month ago #11324

  • Puneet Maheshwari
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I think contracts are more formal .... In case of FP it's assumed scope is well defined. Customer don't care about evm calculation of vendor...I thin ccb from both sides need to agree and change contract...

Please help understand this procurement change question - i cant seem to get the logic right 4 years 1 month ago #11338

  • Mark Wuenscher, PMP
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Mavs19,

Can you please post the source of your question. We are required to give credit to the original source of the questions that are posted on this forum.

Thanks,

Mark
Mark Wuenscher, PMP
Community Moderator

Please help understand this procurement change question - i cant seem to get the logic right 4 years 1 month ago #11349

  • Gerry
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When I read the question, I answered C. My logic is that only the approved scope should be done for the project. The proper scope is listed in the documents listed in C. Also, the PM should be a "problem-solver" and not burden the team if they can solve the problem without involving them. I interpreted B as going through the process of accepting gold-plating which PMI frowns on.
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