According to the PMP Exam Content Outline (2023), one of the tasks under the domain of Planning is to “Develop the procurement management plan based on the project scope, budget, and schedule, in order to ensure that the required project resources will be available” 1. This task involves identifying potential sellers, conducting market research, determining the contract type, and defining the procurement strategy and approach. One of the tools and techniques for this task is “Contract terms and conditions”, which are the legal provisions that govern the rights and obligations of the parties involved in the procurement 2. Penalty clauses are a type of contract terms and conditions that specify the amount of money or other compensation that a party will pay or forfeit in the event of a breach of contract, such as failing to meet the deliverable dates 3. Penalty clauses can be used to motivate the seller to perform according to the contract and to protect the buyer from losses or damages caused by the seller’s poor performance .
According to the PMI-PBA Exam Content Outline (2023), one of the tasks under the domain of Analysis is to “Assess risks that may impact the solution scope or requirements, and document them in the risk register” . This task involves identifying, analyzing, prioritizing, and documenting the risks that may affect the solution or its delivery, and planning the appropriate responses to mitigate or avoid them . One of the tools and techniques for this task is “Risk register”, which is a document that records the details of the identified risks, their causes, impacts, probabilities, priorities, responses, owners, and status . The risk register is a living document that is updated throughout the project as new risks are identified, existing risks are monitored, and risk responses are implemented .
Therefore, the best answer to this question is B. Add penalty clauses to the contract and update the risk register. This answer reflects the project manager’s responsibility to plan the procurement management and the risk management for the project, and to use appropriate tools and techniques to ensure that the project objectives are met. The other answers are not as good because they either do not address the issue of the provider’s poor performance (A and C), or they introduce a new risk by contracting another provider with less experience (D).
[: 1: PMP Exam Content Outline (2023), p. 10 2: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, p. 230 3: Business Law and the Legal Environment, v. 2.0, p. 15.2 : Project Procurement Management: A Guide to Structured Procurements, p. 153 : PMI-PBA Exam Content Outline (2023), p. 9 : Business Analysis for Practitioners: A Practice Guide, p. 97 : A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, p. 403 : Project Risk Management: A Practical Implementation Approach, p. 63, ]
