1. John is the NKL Project project manager for his company. John has discovered that to create a portion of his project deliverables, his team could complete the project work for $17,650, with a monthly fee of $4,334. A vendor that John has previously worked with reports that they could complete the same work for $13,450 but the monthly support for their solution is $6,000. If John elects to create the solution in-house rather than turn to the vendor, how long must the solution be in use to be more cost-effective than the vendors? (5 points)

2. As a project manager and PMP candidate, you need to recognize the characteristics of each contract type. Here's a quick table listing the seven contract types. Write a quick description of each contract type to help you remember the contracts and their characteristics. In the final column, identify who carries the risk of cost overruns: (5 points)

Contract Characteristics Risk Owner

Firm fixed price

Cost plus incentive fee

Fixed-price incentive fee

Fixed-price with economic price adjustment

Cost plus fixed fee Time and material

Cost Plus award fee

3. You are the project manager of the YZZ Project for your organization. This project is to build a web-based software product that will allow customers to query information in a secured database. You have hired a web developer to create social media applications and mobile phone applications that will also allow access to secure data. A change has been requested that will affect the project scope for the entire project. This change will also affect the procured services of the application developer. What concerns would you have as the project manager regarding the contract and the approved change? (5 points)

4. You are serving as a project manager of a company that completes projects for others. In your role as project manager for the seller, how can you best represent the profit-driven goals of your company and still best represent the buyer? (2 points)

5. Sandy is the project manager for her organization. Her organization has hired the BAJ Contractors to build a large, stone patio as part of Sandy's current project. The BAJ Contractors company reports that they would like to be paid for the materials and work performed so far. What activities should Sandy complete regarding the payment request? (3 points)