Enhance your Project Management and Contract Administration exam preparedness with our comprehensive MCQ practice set 7th and quiz. Test your knowledge, master key concepts, and boost your confidence for success. Get ready to excel in your studies with expertly crafted questions. Start practicing today!
Q241. What happens to functional department members once they are assigned to a project team?
a) They specialize in their fields
b) They become project-oriented
c) They report to the PM directly
d) They take on senior roles
Answer
Ans: b) They become project-oriented
Q242. Which role presents the events leading to the project award?
a) Project manager
b) Commercial manager
c) Procurement manager
d) Senior manager
Answer
Ans: b) Commercial manager
Q243. During which project phase does the project construction manager prepare the construction plan?
a) Project execution phase
b) Project initiation phase
c) Project planning phase
d) Project closure phase
Answer
Ans: b) Project initiation phase
Q244. What does an approved bidders list reflect from the procurement plan?
a) Regulatory compliance
b) Specific guidelines
c) Financial requirements
d) Policies established
Answer
Ans: d) Policies established
Q245. What is the final step in the development of the project schedule that integrates independent sub-schedules?
a) Subordinate project schedule
b) Detailed task list
c) Master project schedule
d) Functional schedule
Answer
Ans: c) Master project schedule
Q246. What are the types of drawings involved in production design?
a) Structural and architectural drawings
b) Piping and electrical drawings
c) Piping and instrument drawings
d) Mechanical and civil drawings
Answer
Ans: c) Piping and instrument drawings
Q247. Which method is used to develop a master project schedule with realistic milestones?
a) Bottom-up approach
b) Top-down approach
c) Linear scheduling
d) Iterative scheduling
Answer
Ans: b) Top-down approach
Q248. What will be evident if material deliveries are ahead of construction material required dates?
a) Acceleration
b) Lag
c) Float
d) Delay
Answer
Ans: c) Float
Q249. What is the effectiveness of a system based on continuous feedback and updating of data?
a) Iteration
b) Synchronization
c) Coordination
d) Feedback loop
Answer
Ans: d) Feedback loop
Q250. Which system involves dynamic analysis using PERT/CPM or network techniques?
a) Static system
b) Fixed system
c) Dynamic system
d) Agile system
Answer
Ans: c) Dynamic system
Q251. What is the purpose of “crashing” in a network analysis?
a) To reduce project scope
b) To extend project duration
c) To shorten project schedule
d) To optimize resource allocation
Answer
Ans: c) To shorten project schedule
Q252. How can “crashing” be achieved in a project schedule?
a) By extending activity time
b) By reducing resource usage
c) By compressing project scope
d) By increasing activity dependencies
Answer
Ans: b) By reducing resource usage
Q253. What is compared against the plan by entering the actual number of starts and AFC issues?
a) Estimated budget
b) Benchmark values
c) Planned milestones
d) Actual performance
Answer
Ans: d) Actual performance
Q254. What kind of curve is traced by a normal distribution?
a) Exponential curve
b) Linear curve
c) Bell-shaped curve
d) Parabolic curve
Answer
Ans: c) Bell-shaped curve
Q255. On what base does project cost control start if there is a “poor” estimate?
a) Accurate estimate
b) Reliable estimate
c) Incomplete estimate
d) Inaccurate estimate
Answer
Ans: d) Inaccurate estimate
Q256. At what level can cost control be applied based on the quality and detail of available information?
a) Minimum level
b) Maximum level
c) Corresponding level
d) Standard level
Answer
Ans: c) Corresponding level
Q257. What determines the cost of commodities in a project?
a) Supply and demand
b) Quality and quantity
c) Market trends
d) Economic conditions
Answer
Ans: b) Quality and quantity
Q258. How is “economic value addition” achieved?
a) Through optimization of resources
b) Through comprehensive analysis
c) Through review and rework
d) Through cost-cutting measures
Answer
Ans: c) Through review and rework
Q259. What is the first step towards cost control in a project?
a) Material estimation
b) Budget allocation
c) Man-hour estimate
d) Resource scheduling
Answer
Ans: c) Man-hour estimate
Q260. How is the initial field labor man-hour estimate prepared before converting it to the project labor man-hours?
a) Standardized labor hours
b) Budgeted labor hours
c) Project-specific labor hours
d) Actual labor hours
Answer
Ans: a) Standardized labor hours
Q261. What should be in place to account for unforeseen events in a project?
a) Risk assessment
b) Contingency plan
c) Change management
d) Crisis response
Answer
Ans: b) Contingency plan
Q262. What should be applied equally by all project team members to ensure successful change implementation?
a) Flexibility
b) Resistance
c) Communication
d) Adaptability
Answer
Ans: b) Resistance
Q263. When should a vendor be called in for a “pre-commitment” meeting?
a) After contract signing
b) Before project initiation
c) During project execution
d) During project closure
Answer
Ans: a) After contract signing
Q264. When are pre-award meetings held with shortlisted bidders?
a) Before project initiation
b) After contract signing
c) Before contract award
d) After project completion
Answer
Ans: c) Before contract award
Q265. What does a good project manager do in relation to decisions made unilaterally by one group of the team without careful consideration of the effects on overall project costs, schedules, and quality?
a) Encourages such decisions
b) Supports such decisions
c) Minimizes such decisions
d) Embraces such decisions
Answer
Ans: c) Minimizes such decisions
Q266. What must a project manager possess to induce progress and achieve a successful project?
a) Incentives
b) Vision
c) Motivation
d) Stick
Answer
Ans: d) Stick
Q267. What types of data are typically required as input by project management software?
a) Scheduling data, Budget data, Resource data
b) Scheduling data, Cost data, Quality data
c) Budget data, Resource data, Quality data
d) Cost data, Budget data, Resource data
Answer
Ans: a) Scheduling data, Budget data, Resource data
Q268. Which architecture of ERP software allows seamless integration with project management (PM) software?
a) Closed architecture
b) Proprietary architecture
c) Open architecture
d) Exclusive architecture
Answer
Ans: c) Open architecture
Q269. MS Project is a product under which Microsoft suite?
a) Microsoft Windows
b) Microsoft Office
c) Microsoft Dynamics
d) Microsoft SharePoint
Answer
Ans: b) Microsoft Office
Q270. Which PM software is commonly used in project management?
a) Microsoft Project
b) Primavera Project Planner (P3)
c) Trello
d) Asana
Answer
Ans: b) Primavera Project Planner (P3)
Q271. In modern times, how is engineering documentation primarily stored?
a) Paper format
b) Electronic (soft) form
c) Microfilm
d) Photographic format
Answer
Ans: b) Electronic (soft) form
Q272. Which department is typically responsible for storage, retrieval, and issuance of engineering documents?
a) Engineering Department
b) Procurement Department
c) Documentation Centre
d) Quality Control Department
Answer
Ans: c) Documentation Centre
Q273. What type of contracts often include clauses for automatic renewal if notice is not provided before a defined period?
a) Vendor contracts
b) Buy-side contracts
c) Sell-side contracts
d) Service contracts
Answer
Ans: b) Buy-side contracts
Q274. What provisions are often included in contracts on both buy-side and sell-side?
a) Bonuses for achievements, Penalties for non-achievements
b) Cost reductions for achievements, Penalty charges for non-achievements
c) Bonus payments for non-achievements, Cost reductions for achievements
d) Penalty charges for achievements, Bonus payments for non-achievements
Answer
Ans: b) Cost reductions for achievements, Penalty charges for non-achievements
Q275. What is a primary use of contracts in managing financial information?
a) Ensuring compliance
b) Tracking expenses
c) Managing investments
d) Monitoring assets
Answer
Ans: a) Ensuring compliance
Q276. According to contract management experts, what can’t organizations control if they can’t control their contracts?
a) Finances
b) Customers
c) Businesses
d) Employees
Answer
Ans: c) Businesses
Q277. What aspect of business requirements are often focused on by ERP systems?
a) Customer needs
b) Front-end operations
c) Back-office operations
d) Marketing strategies
Answer
Ans: c) Back-office operations
Q278. What should be given serious consideration during a contract management implementation to ensure system integration?
a) Documentation
b) Data storage
c) Software compatibility
d) User training
Answer
Ans: c) Software compatibility
Q279. What process must suppliers go through before a commercial contract is awarded?
a) Negotiation process
b) Bidding process
c) Approval process
d) Review process
Answer
Ans: b) Bidding process
Q280. What institute suggests that central procurement departments control over 80% of an organization’s purchasing activity for maximum effectiveness?
a) Project Management Institute (PMI)
b) Chartered Institute of Purchasing and Supply
c) International Association for Contract and Commercial Management (IACCM)
d) Institute of Supply Chain Management (ISCM)
Answer
Ans: b) Chartered Institute of Purchasing and Supply
Q281. What is a common sentiment among salespeople when dealing with the administration that follows large deals?
a) Excitement
b) Joy
c) Dislike
d) Indifference
Answer
Ans: c) Dislike
Q282. Whose responsibility is it to manage contracts at an enterprise level?
a) Project managers
b) Legal department
c) Procurement team
d) Entire organization
Answer
Ans: d) Entire organization
Q283. How do most organizations input key contract data into their systems?
a) Automatically
b) Manually
c) Semi-automatically
d) Through AI algorithms
Answer
Ans: b) Manually
Q284. How do external parties typically conduct contract negotiations?
a) In-person meetings
b) Telephonic conversations
c) Through written correspondence
d) Via email
Answer
Ans: d) Via email
Q285. What can build a solid base of reliable vendors for future collaborations?
a) Negotiations
b) Communication
c) Quality assessment
d) Thorough contracting
Answer
Ans: d) Thorough contracting
Q286. What kind of vendors will be part of a solid base for future collaborations?
a) Innovative
b) Economical
c) Reliable
d) Proactive
Answer
Ans: c) Reliable
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