PMP · Question #1351
A project manager is made aware that there are defects in the parts provided by a supplier, which are causing delays in the testing phase. The supplier claims that all parts have been delivered as per
The correct answer is B. Review the procurement contract and ask the supplier to negotiate a solution.. When a supplier's defective parts cause delays despite claims of contract compliance, the project manager should review the procurement contract and negotiate a solution with the supplier.
Question
A project manager is made aware that there are defects in the parts provided by a supplier, which are causing delays in the testing phase. The supplier claims that all parts have been delivered as per the contract. If the defects are not fixed by the supplier within one week, the product release will be impacted. What should the project manager do?
Options
- ARequest a cancellation of the procurement contract with the supplier and impose a penalty.
- BReview the procurement contract and ask the supplier to negotiate a solution.
- CEscalate this issue to senior management, as the supplier is not following the procurement
- DRequest a revision of the procurement contract to include specifications for the parts.
How the community answered
(47 responses)- A4% (2)
- B77% (36)
- C6% (3)
- D13% (6)
Why each option
When a supplier's defective parts cause delays despite claims of contract compliance, the project manager should review the procurement contract and negotiate a solution with the supplier.
Cancelling the contract and imposing a penalty is a drastic measure and typically a last resort, especially before reviewing the contract and attempting negotiation.
When a dispute arises regarding contract deliverables, the first step is to review the existing procurement contract to understand the agreed-upon specifications and terms. With this understanding, the project manager can then engage the supplier in a negotiation to find an agreeable solution, upholding contractual obligations and mitigating project impact.
Escalating to senior management is premature without first understanding the contractual terms and attempting to resolve the issue directly with the supplier.
Revising the contract to include specifications implies the current contract lacks them, which needs to be verified by review, and the immediate issue is resolution, not contract rewrite.
Concept tested: Procurement contract management and dispute resolution
Topics
Community Discussion
5
Fatima Z.Jun 14, 2026Picked B on my exam last month. Remember PICASO: Problem In Contract, Always Sit and Negotiate Options, because the PM's first move when a supplier dispute pops up is to crack open the contract and hash out a fix together, not jump to penalties or escalations.
Zlatan X.Jun 14, 2026Good mnemonic but at program altitude you also want to check whether the contract dispute impacts benefits realization across other components before you sit down, because a single supplier issue can cascade through interdependent projects and shift your governance posture.
Zlatan X.Jun 19, 2026Agreed, B is correct. Contract review and negotiation drive issue resolution within governance.
Nina C.Jun 28, 2026Going with D. The supplier says they delivered per the contract, so the issue is likely that the specs were not detailed enough in the first place. Fixing the contract to include proper specifications addresses the root cause and gives the supplier clear requirements to meet before that one week runs out.
Fatima Z.Jul 1, 2026Good thinking on root cause Nina C. but B is the move here. When the supplier claims they met the contract and the clock is ticking on that one week, the PM needs to verify the actual deliverable against requirements before doing anything else, so you have facts to stand on.