APM PMQ 5- Procurement Test with all Correct & 100%
Verified Answers |Guaranteed to Pass
Purpose of a procurement strategy ✔Correct Answer--Create an approach for acquiring the
goods and services required by the project
Importance of a procurement strategy ✔Correct Answer--Projects are unique and complex in
nature and it is therefore necessary to have a plan to mitigate potential delays in tenders on
long lead times which would delay the schedule
Procurement strategy contents ✔Correct Answer--Make or buy
-Single / multiple contractors
-Supplier reimbursement
-Supplier selection
-T&Cs
-Provide/contractor relationships
Define a 'make or buy' decision ✔Correct Answer--Should the goods be made in-house or
could we procure them elsewhere at a lower cost or better quality?
Give an advantage and a risk of procuring a single supplier ✔Correct Answer--Preferred
supplier with strong existing relationship used for all requirements: preferential rates / volume
pricing. Less time and cost attached to procurement.
-Risk of over-reliance on one supplier: shortages, disruption.
Give an advantage and a risk of procuring multiple suppliers ✔Correct Answer--Price
competition between suppliers. Reduced risk of supply shortage / disruption.
-Risk: Increased cost in contract negotiations and management resource.
Stages of the Tender process. ✔Correct Answer--Research the market
-Pre-qualify suppliers
-Issue Invitation to Tender (ITT)
-Response to queries from bidders
-Receive and evaluate the bids
-Award a contract to a successful bidder
-Enter into contract.
Methods of supplier reimbursement ✔Correct Answer--Cost plus fee
-Cost plus award
-Fixed price
-Time/materials
-Target costs
Verified Answers |Guaranteed to Pass
Purpose of a procurement strategy ✔Correct Answer--Create an approach for acquiring the
goods and services required by the project
Importance of a procurement strategy ✔Correct Answer--Projects are unique and complex in
nature and it is therefore necessary to have a plan to mitigate potential delays in tenders on
long lead times which would delay the schedule
Procurement strategy contents ✔Correct Answer--Make or buy
-Single / multiple contractors
-Supplier reimbursement
-Supplier selection
-T&Cs
-Provide/contractor relationships
Define a 'make or buy' decision ✔Correct Answer--Should the goods be made in-house or
could we procure them elsewhere at a lower cost or better quality?
Give an advantage and a risk of procuring a single supplier ✔Correct Answer--Preferred
supplier with strong existing relationship used for all requirements: preferential rates / volume
pricing. Less time and cost attached to procurement.
-Risk of over-reliance on one supplier: shortages, disruption.
Give an advantage and a risk of procuring multiple suppliers ✔Correct Answer--Price
competition between suppliers. Reduced risk of supply shortage / disruption.
-Risk: Increased cost in contract negotiations and management resource.
Stages of the Tender process. ✔Correct Answer--Research the market
-Pre-qualify suppliers
-Issue Invitation to Tender (ITT)
-Response to queries from bidders
-Receive and evaluate the bids
-Award a contract to a successful bidder
-Enter into contract.
Methods of supplier reimbursement ✔Correct Answer--Cost plus fee
-Cost plus award
-Fixed price
-Time/materials
-Target costs
