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2.2.3

Domain 2 of 3 · Process · task

Resources, procurement and contracts on the PMP® exam

Staffing and contracting come down to who does the work and under which agreement. Two Process tasks live here, plan and manage resources and plan and manage procurement. Read a vendor question against the contract, and a staffing question against the resource plan.

Exam
PMP
Domain
Process
Domain weight
41%
Packages
18
Updated
Oct 13, 2026

01Contract type follows scope certainty

Three contract families and where the cost risk sits

PointFixed priceCost-reimbursableTime and materials
Scope at signingWell definedLarge scope that is uncertain or expected to change a lot, often with high technical riskSmall, short or evolving work billed by effort, or staff augmentation
Cost risk sits withThe sellerThe buyerMostly the buyer
Common formsFFP, FPIF, FP-EPACPFF, CPIF, CPAFHourly or daily rates, often with a cap
Buyer's main controlA clear statement of work and acceptance termsCost audits and fee incentivesA not-to-exceed cap, often per iteration, and timesheet review

FFP firm fixed price; FPIF fixed price incentive fee; FP-EPA fixed price with economic price adjustment; CPFF, CPIF and CPAF cost plus fixed, incentive or award fee. Moving a threat to a seller through a contract is a risk response in its own right, called transfer; see risk response strategies.

02Resources: people, equipment, calendars

With Process at 41% of the exam (PMP Examination Content Outline, as of October 2026), resources and procurement together come to about 8.2% by our estimate. The resource task means planning what the work needs and then keeping it available. A resource calendar shows when each person or piece of equipment can actually be used, holidays and shared commitments included. Resource estimates feed the schedule, and a schedule built without calendars is one nobody can staff.

Leveling and smoothing

Resource leveling moves start and finish dates to fit limited resources, and it can push the end date out. Resource smoothing works only inside available float, so the end date holds while some peaks may remain.

In a matrix organization, people often report to a functional manager, so getting them means negotiating with that manager, and losing them early is a risk worth logging.

03A procurement from need to closeout

  1. Decide make or buy

    Compare doing the work in-house with buying it, on cost, skills, risk and control. Buying is one of the delivery options weighed in value-based delivery.

  2. Write the statement of work and pick the contract type

    The type follows how certain the scope is. Selection criteria are fixed before bids arrive.

  3. Select the seller

    Evaluate proposals against those criteria and negotiate an agreement both sides can keep.

  4. Control the work

    Measure vendor performance against the contract: deliverables, dates and quality terms. Quality expectations for vendor work are planned in quality management.

  5. Close the contract

    Closure is formal: the buyer confirms the terms are met and tells the seller in writing that the contract is complete.

04Contracts, vendors and the people you borrow

Is an agreement already in force, and what does it say? Many of these turn on that.

Work packages 18

  1. WP 01A project manager discovers that a mandatory federal compliance clause was accidentally omitted from an active, signed vendor contract for a highly regulated public procurement. What is the most appropriate course of action?

    Debrief answer to open the notes

    1. ATerminating is drastic when the omission can be fixed by amending the contract.
    2. BLogging the omission as a defect records it but does not close the contract's legal gap.
    3. CCorrect: A signed contract changes only through its formal change process, so the missing clause is added by an agreed, documented amendment.
    4. DWithholding payments without contractual grounds could itself breach the contract and harm the vendor relationship.
  2. WP 02Hiring a contractor costs $18 k with 6-week lead time. Overtime for existing staff costs $14 k but risks quality. Which option is best given a 4-week deadline and fixed budget?

    Debrief answer to open the notes

    1. ASplitting still relies on a hire whose six-week lead time misses the four-week deadline, and it spends more of a fixed budget.
    2. BCorrect: Hiring cannot arrive within four weeks and costs more; overtime fits the budget and deadline, and quality gates manage its main risk.
    3. CDelaying the deliverable to allow hiring breaks the deadline, which is the constraint the decision has to meet.
    4. DThe budget is fixed, so asking for more is unlikely to succeed and still leaves the hiring lead time too long.
  3. WP 03A contract is nearing closeout with pending supplier deliverables. Which workflow finalizes performance feedback while preserving dispute evidence?

    Debrief answer to open the notes

    1. ACorrect: Documented acceptance, evidence-based supplier evaluations, and archiving with legal close the contract cleanly while preserving what any dispute would need.
    2. BChanging contract terms unilaterally is outside the PM's authority and creates the very dispute risk closeout should prevent.
    3. CPaying in full before acceptance gives up the buyer's main leverage over unfinished deliverables.
    4. DVerbal confirmation leaves no evidence if acceptance is later disputed.
  4. WP 04A contractor charges $95 per hour with a 40-hour minimum block and 15% contingency for onboarding. How much must be budgeted for 28 productive hours?

    Debrief answer to open the notes

    1. A$3,325 is 35 hours at $95, which matches neither the 40-hour minimum nor the contingency.
    2. B$3,800 covers the 40-hour minimum but leaves out the 15% onboarding contingency.
    3. CCorrect: The 40-hour minimum applies even for 28 productive hours: 40 x $95 = $3,800, plus 15% contingency = $3,800 x 1.15 = $4,370.
    4. D$4,104 applies only 8% to the minimum block instead of the stated 15% contingency.
  5. WP 05Supplier claims contract covers scope; unclear obligations threaten value. Best next step?

    Debrief answer to open the notes

    1. AAccepting the supplier's reading and changing the baseline concedes a disputed obligation without checking the contract or its impact.
    2. BA mediated workshop may come later, but bringing in a mediator before the impact is understood and procurement is involved is premature.
    3. CCorrect: Contract interpretation belongs with procurement, the contract's authorized owner, and an impact review first lets the PM show what is at stake.
    4. DInformal side agreements bypass contract administration and can create new, undocumented obligations.
  6. WP 06After negotiating cross-functional resource transfers, the project manager must document the agreement. Which minimal set of fields should the resource allocation record template contain to support auditability and rollback?

    Debrief answer to open the notes

    1. ACorrect: Who, what, when, duration, rollback criteria, and impact analysis let an auditor trace the decision and let the team reverse it cleanly if needed.
    2. BSkills, location, and targets describe the resource, not the agreement, so the transfer cannot be audited or rolled back.
    3. CName, date, and signature show approval but not scope, duration, or how to undo the transfer.
    4. DActivity list, budget code, and date omit the duration, rollback terms, and impact the record needs.
  7. WP 07Under a fixed-price contract, a supplier's training deliverables show consistent quality shortfalls. What is the project manager's first action?

    Debrief answer to open the notes

    1. ACorrect: Under a fixed-price contract the supplier owes conforming deliverables, so the first step is involving procurement to apply the remedies the contract provides.
    2. BAccepting substandard deliverables waives the buyer's rights and leaves the training gap in place.
    3. CInternal job aids absorb the supplier's shortfall at the buyer's own cost.
    4. DA change order to add training scope pays the supplier again for work already owed under the existing contract.
  8. WP 08Resource leveling shows persistent overallocation with insufficient float on critical activities. Which first action reduces overallocation without shifting the project end date?

    Debrief answer to open the notes

    1. ACorrect: Splitting and reassigning non-critical, lower-priority work uses the float that exists off the critical path, easing overallocation without moving the end date.
    2. BCutting scope is a change request with stakeholder impact, not a first step in resource optimization.
    3. COvertime for everyone raises cost and burnout risk and does not reduce the overallocation itself.
    4. DLeveling critical-path activities with little float pushes them later, which moves the project end date.
  9. WP 09A subcontractor submits a late cost claim during contract closeout. What is the correct first sequence of actions?

    Debrief answer to open the notes

    1. ARejecting a claim without review invites a dispute and may ignore a legitimate entitlement.
    2. BPaying without assessing entitlement may spend money the contract does not require.
    3. CFormal dispute is a later step, used only if negotiation on the documented claim fails.
    4. DCorrect: record the claim and check it against the contract terms first; entitlement analysis decides whether to settle, negotiate, or reject.
  10. WP 10Cross-project resource negotiation has failed. The shortfall will cause a 4-week delay and $85,000 cost overrun. Which escalation package meets governance requirements?

    Debrief answer to open the notes

    1. ACorrect: Governance escalation needs the quantified impact, here 4 weeks and $85,000, plus options, so decision-makers can choose rather than just receive bad news.
    2. BAsking for budget without schedule analysis presents half the impact and no alternatives.
    3. CReporting the slip after it happens removes any chance to act on it; escalation should come when the shortfall is known.
    4. DBypassing defined thresholds breaks the governance path the escalation is meant to follow.
  11. WP 11A critical supplier is repeatedly failing to meet delivery targets. An important steering committee meeting is scheduled for tomorrow. How should you address this vendor performance issue?

    Debrief answer to open the notes

    1. AWithholding payment may breach the contract and escalates conflict before the performance issue is even discussed.
    2. BMoving the work in-house is a large decision that ignores the contract and stretches the internal team.
    3. CRaising the failures publicly at the steering committee before talking to the vendor damages the relationship and skips the first remedy.
    4. DCorrect: A direct conversation with the vendor, based on objective performance data, addresses the problem at its source and keeps the relationship workable.
  12. WP 12Recurring resource bottlenecks have been analyzed in a retrospective. What outputs should be captured to update organizational process assets with measurable success criteria?

    Debrief answer to open the notes

    1. AAffected activities and backlog items describe this sprint's work, not lasting changes to process assets.
    2. BCorrect: Root causes, revised roles, a cross-training plan, KPI targets, and a review date give the OPA update both substance and a measurable check.
    3. CMinutes and individual performance notes are records, not process improvements, and personal notes do not belong in shared assets.
    4. DSchedule and budget updates manage this project but do not change the organization's process to prevent future bottlenecks.
  13. WP 13A subcontractor deliverable requires contract-level acceptance evidence. Which mapping ensures compliance and verification?

    Debrief answer to open the notes

    1. ALeaving out trade-off documentation weakens the contract record that verification depends on.
    2. BCorrect: Linking each deliverable to its acceptance criteria and to the evidence the subcontractor must supply makes acceptance verifiable at contract level.
    3. CVerbal assurance provides no evidence and cannot support contract-level acceptance.
    4. DMilestone dates show timing, not quality; acceptance needs objective evidence that criteria were met.
  14. WP 14Staff have been reallocated across three projects. What is the required sequence of documentation and communication steps?

    Debrief answer to open the notes

    1. AEmailing stakeholders before updating records communicates changes that are not yet reflected in the plan.
    2. BUpdating only the RACI leaves the resource plan and schedule out of date and closes the change prematurely.
    3. CCorrect: Recording the allocation, updating the resource plan and affected baselines, then notifying stakeholders keeps records accurate before anyone acts on the news.
    4. DInternal reallocation rarely requires contract changes first; the internal records are the source of truth to update.
  15. WP 15During a complex procurement, multiple draft agreement versions are circulated via email. The buyer and supplier are now in a dispute over which technical terms were finalized during last week's session. What should the project manager have done to prevent this?

    Debrief answer to open the notes

    1. APushing legal to finish quickly does not fix the underlying problem of untracked versions.
    2. BLimiting who sends drafts reduces senders but still does not track which version contains which agreed terms.
    3. CCorrect: Disciplined version control and records of what was agreed in each session prevent disputes over which terms were finalized.
    4. DAn NDA protects confidentiality, not the record of which terms were agreed.
  16. WP 16A project team is implementing a new enterprise resource planning (ERP) system. The project manager needs to ensure that all stakeholders understand their roles and responsibilities regarding system testing. Which document should be created?

    Debrief answer to open the notes

    1. ACorrect: A RACI chart maps each activity to who is responsible, accountable, consulted, and informed, which is exactly the role clarity testing needs.
    2. BA communications management plan covers how and when information flows, not who does which testing tasks.
    3. CA change management plan governs how changes are handled, not role assignments for testing.
    4. DA stakeholder register lists stakeholders and their interests but does not assign responsibilities for activities.
  17. WP 17A vendor makes a surprise high-cost demand just prior to signing a critical software implementation contract. The project manager knows their own alternative is a generic tool requiring heavy customization. What should the project manager do FIRST?

    Debrief answer to open the notes

    1. ACorrect: Estimating the vendor's best alternative shows how much leverage each side has and where the zone of possible agreement lies before the PM responds.
    2. BThreatening with a weak alternative invites a call of the bluff, since the generic tool needs heavy customization.
    3. CSuspending talks indefinitely risks the critical contract and gives up the chance to negotiate.
    4. DThe sponsor may need to know eventually, but escalating before analyzing the negotiation position hands over a problem the PM can work first.
  18. WP 18You are a project manager preparing for a critical contract negotiation with a strategic vendor. The vendor is known for aggressive bargaining. To ensure a successful outcome without compromising essential project constraints, what should you do FIRST before the meeting begins?

    Debrief answer to open the notes

    1. ALeading with compromise gives ground to an aggressive bargainer before the PM knows what can be traded.
    2. BA stakeholder engagement matrix tracks engagement levels; it is not a negotiation preparation tool.
    3. CCorrect: A prioritized issues list with planned concessions tied to counter-concessions protects essential constraints and keeps every give matched by a get.
    4. DMediation is for an impasse, not a default first step before negotiation has even begun.

Open a row to answer. Keys: 1–4 or A–D answer, N opens the next row.