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PK0-003 · Question #27

Which of the following is typically the LAST step when acquiring a product or service from a vendor?

The correct answer is D. Contract signing. The final definitive step in the acquisition process, which legally binds both parties, is the formal signing of the contract.

Project management concepts

Question

Which of the following is typically the LAST step when acquiring a product or service from a vendor?

Options

  • AVendor selection
  • BEvaluate seller response
  • CContract development
  • DContract signing

How the community answered

(39 responses)
  • A
    3% (1)
  • B
    8% (3)
  • C
    3% (1)
  • D
    87% (34)

Why each option

The final definitive step in the acquisition process, which legally binds both parties, is the formal signing of the contract.

AVendor selection

Vendor selection occurs earlier in the process, after evaluating seller responses and before developing the final contract with the chosen vendor.

BEvaluate seller response

Evaluating seller responses happens before vendor selection, where proposals or quotes from potential vendors are reviewed.

CContract development

Contract development involves drafting the legal agreement with the selected vendor and precedes the formal signing of that agreement.

DContract signingCorrect

Contract signing is the definitive action that legally binds both the buyer and the seller to the terms and conditions outlined in the contract, marking the formal completion of the acquisition process's negotiation and agreement phase. This step happens after all other evaluations and developments have been finalized.

Concept tested: Procurement process steps

Source: https://www.pmi.org/learning/library/project-procurement-management-strategy-9304

Topics

#Procurement process#Contract signing#Vendor management

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