Project ManagementWaterfall

Free PMP® Exam Sample Question


You are managing a construction project. You have outsourced the labor workforce to a contractor using a Time and Materials contract. As per the contract, your contractor is claiming $10 per hour for labor and an average of 10 hours a day per each labor resource provided. You know that on average only 8 of these 10 hours per day were actually productive time spent on the project. However, your contract doesn’t state anything specifically about not charging for unproductive time. Just make sure that all the equipment and building materials like billed like the stainless steel strapping or the compactors used are accurately reported in the ledgers. You now have a hold on all of the contractor’s invoices until you reach a resolution. Which of the following might be a factor contributing to this situation?

A.) Your contractor is being unreasonable

B.) You are being unreasonable towards the contractor

C.) You have not drafted the contract properly

D.) You should never use a T&M contract on a construction project

Question provided by The PM Exam Simulator:

Answer & Explanation

Correct Answer: C)

Don’t get distracted by the scenario. The scenario may put you in the shoes of the project manager, but it does not mean that you are always right! Assume that you are not the project manager for a moment. In that case you cannot resolve this dispute in any party’s favor just with the information given. However, you can easily spot the weakness in the contract since it should have clauses regarding issues such as these. A T&M contract can be used in this type of project, however the terms of the arrangement should be clearly specified within the agreement to avoid potential disputes.

Reference: PMBOK Guide 5th Edition, page 364

Disclaimer and Copyright Statement

PMI, PMP, CAPM, PgMP, PMI-ACP, PMI-SP, PMI-RMP and PMBOK are trademarks of the Project Management Institute, Inc. PMI has not endorsed and did not participate in the development of this publication. PMI does not sponsor this publication and makes no warranty, guarantee or representation, expressed or implied as to the accuracy or content. Every attempt has been made by OSP International LLC to ensure that the information presented in this publication is accurate and can serve as preparation for the PMP certification exam. However, OSP International LLC accepts no legal responsibility for the content herein. This document should be used only as a reference and not as a replacement for officially published material. Using the information from this document does not guarantee that the reader will pass the PMP certification exam. No such guarantees or warranties are implied or expressed by OSP International LLC.

Related posts

PMP Exam Myths – True or False?

Abhinav Kaiser

Top 10 Features of a Great PMP Exam Simulator

Abhinav Kaiser

Is a Scrum Master the Agile Version of a Project Manager?

Abhinav Kaiser

How to Find a Great PMP Mock Exam Online

Abhinav Kaiser

Have the Right Mindset for Your PMP Exam

Abhinav Kaiser

The 7 Things You Need to Pass The PMP Exam

Abhinav Kaiser

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.