PMP · Question #453
A project manager for a maintenance project has a contract that is renewed annually. The project started 6 years ago. After contract renewal this year the auditors reported that this version of the…
The correct answer is C. The legal department has not disseminated the law correctly to all staff. A contract renewed annually for a 6-year-old project violates a new law passed last year, indicating a failure in the organization's internal legal compliance communication.
Question
A project manager for a maintenance project has a contract that is renewed annually. The project started 6 years ago. After contract renewal this year the auditors reported that this version of the contract violates a new law that was passed last year. What has happened in this situation?
Options
- AThe contract has not been appropriately reviewed by the project team
- BThe stakeholder engagement plan has not been correctly implemented
- CThe legal department has not disseminated the law correctly to all staff
- DThe project manager does not have enough knowledge on this legal matter
How the community answered
(47 responses)- A2% (1)
- B9% (4)
- C77% (36)
- D13% (6)
Why each option
A contract renewed annually for a 6-year-old project violates a new law passed last year, indicating a failure in the organization's internal legal compliance communication.
While the project team should review contracts, the primary responsibility for being aware of new laws and their impact rests with specialized departments like legal, which then inform the project team.
The stakeholder engagement plan primarily focuses on managing communication and relationships with project stakeholders, not specifically on internal legal compliance monitoring and dissemination.
The legal department is responsible for monitoring regulatory changes, interpreting their impact on organizational operations and contracts, and disseminating critical legal updates to relevant staff and departments, including project management and procurement, to ensure compliance. Their failure to do so correctly would lead to unawareness of the new law and subsequent non-compliance.
Expecting the project manager to have comprehensive, up-to-the-minute knowledge of all legal matters is unrealistic; organizations typically rely on their legal counsel for such expertise and dissemination.
Concept tested: Organizational process assets and legal compliance
Topics
Community Discussion
No community discussion yet for this question.