PK0-003 · Question #425
A project manager is using a vendor with a fixed bid contract. The vendor would like to help out with other parts of the project. Which of the following should the project manager do NEXT?
The correct answer is A. Review the vendors SOW and determine if the additional work items can be included.. When a vendor on a fixed bid contract offers additional work, the project manager should first review the existing Statement of Work (SOW) to determine if the new tasks align or require formal change control. This ensures all work is properly documented and contracted, maintainin
Question
A project manager is using a vendor with a fixed bid contract. The vendor would like to help out with other parts of the project. Which of the following should the project manager do NEXT?
Options
- AReview the vendors SOW and determine if the additional work items can be included.
- BAllow the vendor to accept the additional work on a time and material (T&M) basis.
- CAllow the vendor to accept the additional work, but honor the fixed bid price.
- DExplain to the vendor that the work is already assigned to the vendor with the lowest cost.
How the community answered
(57 responses)- A81% (46)
- B5% (3)
- C2% (1)
- D12% (7)
Why each option
When a vendor on a fixed bid contract offers additional work, the project manager should first review the existing Statement of Work (SOW) to determine if the new tasks align or require formal change control. This ensures all work is properly documented and contracted, maintaining project integrity and legal compliance.
Before committing to any additional work, the project manager must review the current SOW to see if the new tasks fall within the existing scope or if a change request is necessary. This step ensures that all work is formally defined, priced, and approved, preventing scope creep and ensuring contractual adherence.
Allowing the vendor to accept additional work on a T&M basis without prior review or formal amendment to the existing fixed-bid contract can lead to uncontrolled costs and scope creep.
Allowing additional work without adjustment to a fixed-bid price is unreasonable and unfair to the vendor, as it would require them to perform work outside the original agreement without compensation.
This response is dismissive and does not address the vendor's proactive offer; while other vendors might be involved, the primary responsibility is to manage the current vendor relationship and contract.
Concept tested: Contract management and change control
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