Direct answer

Make procurement decisions by aligning contracts, risk allocation, source selection, claims, change control, and supplier relationships.

What to know

  • Contract type changes how cost and performance risk are allocated.
  • Clear statements of work and acceptance criteria reduce disputes.
  • Procurement changes must follow contractual authority.
  • Claims require documentation and the agreed resolution process.

How to apply it

Involve procurement and legal specialists according to governance. Keep technical collaboration separate from unauthorized contract commitments.

Worked example

A vendor proposes additional work. Assess scope and contractual impact, document the request, and use the contract change process before authorizing performance.

Common mistakes

  • Directing supplier work outside delegated authority.
  • Selecting only on initial price.
  • Ignoring relationship management after contract award.

Exam and practice connection

Scenario answers should respect the contract, organizational procurement policy, and the project manager’s authority.