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PGMP · Question #26

Mike is the program manager of the NHQ Program. Mike and a vendor are in disagreement over the deliverable the vendor has created for Mike's program. Mike does not believe the vendor has correctly cre

The correct answer is D. Claim. When both parties in a contract dispute document their formal positions regarding a disagreement over a deliverable, this constitutes a claim.

Program Life Cycle Management

Question

Mike is the program manager of the NHQ Program. Mike and a vendor are in disagreement over the deliverable the vendor has created for Mike's program. Mike does not believe the vendor has correctly created the deliverable, while the vendor is adamant that his company has indeed completed the contract. Both parties have documented their stance in the debate. This is an example of what?

Options

  • ABreach of contract
  • BIssue
  • CRisk
  • DClaim

How the community answered

(22 responses)
  • A
    5% (1)
  • B
    5% (1)
  • C
    14% (3)
  • D
    77% (17)

Why each option

When both parties in a contract dispute document their formal positions regarding a disagreement over a deliverable, this constitutes a claim.

ABreach of contract

A breach of contract occurs when one party definitively fails to meet contractual obligations - a formal determination has not been made yet; this is still a dispute.

BIssue

An issue is a general problem or question that arises during program execution, whereas a claim is a specific formalized contractual disagreement with documented positions from both parties.

CRisk

A risk is an uncertain future event that may or may not occur - this situation has already occurred and is actively being disputed, not an uncertain future possibility.

DClaimCorrect

A claim is a formal request or assertion by one or both parties of a contract, seeking consideration, compensation, or resolution of a disputed matter, typically documented by both sides. The scenario describes exactly this - Mike and the vendor each have documented their positions in an unresolved disagreement over contract fulfillment, which is the defining characteristic of a claim in contract management.

Concept tested: Contract claims management in program procurement

Source: https://www.pmi.org/learning/library/contract-claim-management-6906

Topics

#Contract Management#Claims Administration#Vendor Management#Procurement

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