Preview Questions Procurement Manager | Role Specific Skill

Question 1: How can a Procurement Manager effectively handle price escalation clauses in long-term contracts?

Which action should you take?

Choose only one option

By ensuring no clauses for escalation are included

By establishing a mutually agreed-upon formula for price adjustments based on specific cost factors

By setting maximum price caps that are non-negotiable

By negotiating fixed prices for the contract term

Question 2: What is the best approach to manage overhead costs during a construction project with a strict budget?

Which action should you take?

Choose only one option

By focusing solely on material costs and ignoring overhead

By reducing the use of expensive machinery

By analyzing and optimizing overhead cost categories

By cutting back on direct labor costs

Question 3: What is the primary function of due diligence during the supplier selection process in a construction project?

Which action should you take?

Choose only one option

To evaluate market trends

To assess the financial and operational stability of suppliers

To negotiate favorable terms and prices

To ensure timely delivery of materials

Question 4: What is the effect of poor logistics planning on construction project timelines?

Which action should you take?

Choose only one option

Project delays and increased costs

Better management of contingency funds

Improved supplier relationships

Reduction in required labor resources

Question 5: How should procurement managers evaluate the financial health of a vendor before entering into a contract?

Which action should you take?

Choose only one option

Consider their social media presence

Look at their geographical location

Analyze their balance sheet and credit reports

Review their delivery history

Question 6: How should a procurement manager address performance risk in a construction contract negotiation?

Which action should you take?

Choose only one option

Avoid penalties and focus on incentives

Only negotiate on the price

Create a fixed timeline with no flexibility

Negotiate penalties for delays