Procurement Mgmt

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KaurP
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Procurement Mgmt

Postby KaurP Sun Aug 12, 2018 8:13 am

Q34 from Rita 9th edition-

The 80,000 contract specifies that the seller will bill the buyer at 10,000 per month. Seller completed the project work faster than planned. Therefore, they bill the buyer for 15,000 for the work performed in the last month. The buyer should-

A. Send a breech of contract notice Marked as correct
B. Meet with the seller to discuss the overcharge

Should the answer be 'B' in this case? Shouldn't this be discussed between both the parties to clear misunderastanding,if any, while checking if there is any such clause mentioned in the contract (T&C) or not?

Here is another question-

The project you are working on has received an invoice from a vendor for USD $17,500. However, your team believes the correct total due is $15,300. When you notify the vendor of this, the vendor still insists on US$ 17,500. What is the best course of action now?

A. Pay $15,300.
B. Negotiate with the vendor.. Marked as correct
C. File a lawsuit.
D. Pay $17,500

In this question, notifying the vendor of team's calculation means it has been discussed, buyer did put his point forward and still if seller insists on paying him US$ 17,500 (not reached on any agreement) shouldn't it be considered as a dispute and making option 'C' as correct answer for this Q?

Thanks!
manishpn
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Re: Procurement Mgmt

Postby manishpn Sun Aug 12, 2018 7:02 pm

KaurP wrote:Q34 from Rita 9th edition-

The 80,000 contract specifies that the seller will bill the buyer at 10,000 per month. Seller completed the project work faster than planned. Therefore, they bill the buyer for 15,000 for the work performed in the last month. The buyer should-

A. Send a breech of contract notice Marked as correct
B. Meet with the seller to discuss the overcharge

Should the answer be 'B' in this case? Shouldn't this be discussed between both the parties to clear misunderastanding,if any, while checking if there is any such clause mentioned in the contract (T&C) or not?

Here is another question-

The project you are working on has received an invoice from a vendor for USD $17,500. However, your team believes the correct total due is $15,300. When you notify the vendor of this, the vendor still insists on US$ 17,500. What is the best course of action now?

A. Pay $15,300.
B. Negotiate with the vendor.. Marked as correct
C. File a lawsuit.
D. Pay $17,500

In this question, notifying the vendor of team's calculation means it has been discussed, buyer did put his point forward and still if seller insists on paying him US$ 17,500 (not reached on any agreement) shouldn't it be considered as a dispute and making option 'C' as correct answer for this Q?

Thanks!


an incorrect invoice is not constituted as a breach of contract in general, there could be some strict contracts like this, but i have not seen it, and if this is a one of instance i.e not happening on ongoing basis then usually it should be discussed with vendor.
remember every contract has a clear mention on what constitutes material breach.
incorrect or inflated invoices on continuous basis maybe intentional and should be treated with strictness
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/

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