ITPEC IP April 2022 Question 57
A company orders information system to an overseas vendor under a contract for work. Which of the following is an appropriate activity that is performed as project procurement management by the company?
Explanation
Agreeing in writing on deliverables and change rules at contract signing — procurement management fixes the terms before the work starts.
Under a contract for work the vendor undertakes to complete the deliverables, so what is to be delivered and how it may change must be defined in the contract. With an overseas vendor, differences in language, business practice and law make unstated expectations a common source of disputes. The contract should therefore set out in writing the deliverables, acceptance conditions, intellectual property rights and the procedure for changing specifications during development.
Answer (d)
Why not others:
- •(a) — after acceptance, work not stated in the contract cannot simply be demanded of the vendor; it needs a contractual basis or a new agreement
- •(b) — leaving out intellectual property provisions leaves ownership and use of the developed programs unclear, inviting disputes; letting the vendor code freely does not require that
- •(c) — scope, specifications and work contents must be agreed in writing before development starts, not after
Key rule: In procurement, everything the buyer will rely on (deliverables, rights, acceptance and change control) is agreed in writing before the contracted work begins.
Project Management · AI-written, may contain errors
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