PMP · Question #845
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 w
The correct answer is C. Add penalty clauses to the contract and update the risk register.. The project must use a provider known for late deliveries, creating a significant schedule risk, so the project manager needs to proactively address this during planning. During the planning phase, the project manager should mitigate the known risk of late deliverables by adding
Question
Options
- AEncourage the provider to work overtime with no additional costs to the project.
- BHire resources to obtain knowledge about the provider's specific capabilities.
- CAdd penalty clauses to the contract and update the risk register.
- DContract another provider with less experience and give them a chance to provide the
How the community answered
(27 responses)- A7% (2)
- B15% (4)
- C74% (20)
- D4% (1)
Why each option
The project must use a provider known for late deliveries, creating a significant schedule risk, so the project manager needs to proactively address this during planning. During the planning phase, the project manager should mitigate the known risk of late deliverables by adding penalty clauses to the contract to incentivize timely performance and updating the risk register to document this risk and its response strategy.
Encouraging a provider to work overtime without additional costs is an unreasonable expectation and not a formal risk mitigation strategy.
Hiring resources to obtain knowledge about the provider's capabilities is not a direct solution for mitigating the risk of late deliverables from that specific provider.
Adding penalty clauses to the contract during the planning phase provides a contractual incentive for the provider to meet deadlines, directly addressing the known issue of late deliverables. Simultaneously, updating the risk register is essential for formalizing the risk, its potential impact, and the planned response, ensuring it's managed throughout the project.
Contracting another provider with less experience would introduce new risks related to quality and project success, which might outweigh the benefits of avoiding the known scheduling issues.
Concept tested: Procurement risk management and contract negotiation
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
Topics
Community Discussion
3
Yusuf A.Apr 14, 2026C is the right call here. One of the senior PMs at my company told me that when you know a vendor is risky but you still have to use them, you document that risk and protect the project with penalty clauses so there is accountability if they slip on dates again.
Imani T.May 7, 2026Saw this on my exam last month, C is right because you document the risk. Had this exact scenario, picked C since penalty clauses plus risk register is the PMBOK play.
Yuki V.Apr 22, 2026I first leaned toward B because building internal knowledge of the provider's capabilities sounded proactive, but during planning the right move when you know a vendor has a history of missing dates is to address it through the contract and risk register. C is the classic planning-phase response: add penalty clauses to enforce accountability and log the delivery risk formally.