Project Management Professional PMP · Free Practice Question Medium
Question 59
A ten-month project is into the fifth month and running smoothly so far. It is a complex IT project with an extremely tight timeline and budget. The stakeholders inform the project manager to keep up the pace and ensure the delivery schedule is not impacted as the product is needed for marketplace opportunities. The sooner the project is complete, the bigger the return on the investment. A portion of the project work is contracted to a third-party vendor who has a history of excellent work but is often late with deliverables. The project manager assesses the risk events to find the most likely to impact the project's schedule. Which mitigation tool could the project manager use with this vendor to encourage on-time delivery and discourage lateness?
- A Disincentive for late work
- B Incentive and disincentives for work completion
- C Incentives for work completed on time
- D Intermittent schedule checks
Reveal correct answer
Correct answer: B
Explanation
A contract that uses incentives, such as a bonus, for work completed on time – and disincentives for late work is the best choice presented. Incentives for work completed on time is nice, but there is no financial punishment if the vendor is late, so this option is not the best choice. Disincentive for late work does punish the vendor if they are late, but there is no incentive to get the work done quickly and accurately, so this is not the best choice presented. Intermittent schedule checks do not do much to get the vendor to deliver the work on time as the project needs, so this is not the best choice presented.Discussion
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