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Procurement Knowledge area

Posted: Mon Sep 24, 2018 8:48 am
by ushasharan
You are managing a road construction project; part of the project is given to a contractor. You learn that the contractor is not paying his staff the wages currently given in the market. The staff is not keen to work and because of this the whole team is suffering from schedule slippages. You have some funds from your project, where you have the authority to spend for the benefit of the team and the project. You plan to take the contractor team for a dinner at a star hotel, which you think will motivate them to work. One of your senior managers questions your decision. What would you explain?

a) The senior manager is right. You do not have any right to spend project fund on a contractor staff.
b) Your contractor staff needs to be motivated to bring them back to complete the work

I am confused which option is the right one and why? Please explain

Re: Procurement Knowledge area

Posted: Mon Sep 24, 2018 6:47 pm
by manishpn
are there only 2 options provided?
Unless we know the details of the contract its difficult to choose option 1 or 2
In general assuming there are no contractual clauses that prevents PM to do so

Re: Procurement Knowledge area

Posted: Tue Sep 25, 2018 10:06 am
by ushasharan
Thankyou Manish,

The other two options are completely irrelevant thats why I dint post it.

But in the question it mentioned " You have some funds from your project, where you have the authority to spend for the benefit of the team and the project."

The test portal which I have attended shows option (b) as correct answer with the explanation given as "You as a project manager is responsible for the outcome of the project. You should try all means to motivate the staff, contractors, subcontractors etc., to bring the project on track and success. As a project manager you inherently possess the authority to spend funds for the team benefit which will directly/ indirectly benefit the project outcome."

But the team under the contractor is managed by contractor PM only right.

Re: Procurement Knowledge area

Posted: Tue Sep 25, 2018 10:45 am
by manishpn
ushasharan wrote:Thankyou Manish,

The other two options are completely irrelevant thats why I dint post it.

But in the question it mentioned " You have some funds from your project, where you have the authority to spend for the benefit of the team and the project."

The test portal which I have attended shows option (b) as correct answer with the explanation given as "You as a project manager is responsible for the outcome of the project. You should try all means to motivate the staff, contractors, subcontractors etc., to bring the project on track and success. As a project manager you inherently possess the authority to spend funds for the team benefit which will directly/ indirectly benefit the project outcome."

But the team under the contractor is managed by contractor PM only right.

i realized that I did not type my initial response completely,
I meant
In general assuming there are no contractual clauses that prevents PM to do so PM can take contractors out for lunch

Yes during the duration of the contract PM manages the team ,

Re: Procurement Knowledge area

Posted: Tue Sep 25, 2018 4:19 pm
by ushasharan
Thankyou for clarification