Preview Questions Procurement Manager | Role Specific Skill

Question 1: What is the most effective method to track cost deviations and identify potential problems early in a construction project?

Which action should you take?

Choose only one option

Use activity-based costing for project components

Avoid updating cost estimates after the project starts

Use a variance analysis system to compare actual costs with budgeted costs

Track costs only when they exceed 5% of the budget

Question 2: When managing multiple vendors for a construction project, what is the best method to ensure that vendors meet agreed-upon delivery schedules?

Which action should you take?

Choose only one option

Implement strict penalties for late deliveries

Monitor supplier delivery schedules through a digital dashboard

Use just-in-time procurement to ensure timely delivery

Negotiate extended deadlines to accommodate delays

Question 3: What is a critical element to consider when assessing the financial stability of suppliers in the construction industry?

Which action should you take?

Choose only one option

Rely on external market research

Focus on the length of the supplier's relationship with other contractors

Review financial statements and credit ratings

Evaluate supplier cost structures based on materials

Question 4: What strategy should be implemented in a contract to mitigate disputes arising from scope creep in construction projects?

Which action should you take?

Choose only one option

Lock in project timelines

Use performance bonds to cover scope changes

Include a fixed scope clause

Set clear project milestones

Question 5: When negotiating contract terms for construction material procurement, which of the following is a key focus?

Which action should you take?

Choose only one option

Limiting supplier liability in case of material defects

Standardizing contract terms across all suppliers

Securing favorable delivery schedules and quantity commitments

Reducing the duration of warranties

Question 6: How can procurement managers effectively negotiate warranties in construction contracts?

Which action should you take?

Choose only one option

Opt for no warranty to save costs

Prioritize longer warranty periods

Focus on low-cost warranties

Ensure the warranty covers all project stages