PMP Question #700: Real Exam Question with Answer & Explanation

Question

A project manager has experience working with a specific provider that has been requested for an upcoming project. This provider often fails to meet deliverable dates; however, it is the only company with the specific experience required for the project. What should the project manager do during the planning phase?

Options

• AHire resources to obtain knowledge about the provider's specific capabilities.
• BAdd penalty clauses to the contract and update the risk register.
• CEncourage the provider to work overtime with no additional costs to the project.
• DContract another provider with less experience and give them a chance to provide the

Explanation

Given a sole-source provider with a history of missed deadlines, the project manager should proactively mitigate this known risk by incorporating penalty clauses into the contract and documenting the risk in the risk register.

Common mistakes.

• A. Hiring resources to gain knowledge about the provider's capabilities is unlikely to solve the issue of missed deadlines and adds unnecessary cost and complexity.
• C. Encouraging overtime without additional cost is an unrealistic expectation for a third-party provider and does not address the underlying issue or mitigate the risk effectively.
• D. Contracting another less experienced provider is not a viable option, as the question states the requested provider is the 'only company with the specific experience required.'

Concept tested. Risk management and contract negotiation in project management

Reference. https://www.pmi.org/learning/library/risk-management-strategies-techniques-6260

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