Deck 9: The Commercial Interface

Question 1

At which stage there is the principal commercial engagement by the owner with suppliers:

A) Appraise
B) Select
C) Define
D) Execute

Answer 1

D

Question 2

Match the Force with the aspects of contracting strategy
-Institutional force

A) capitalist economies are inherently cyclical and those cycles are reflected in the dynamics of supply sectors where the amplitude of the cycle at the macroeconomic level is amplified by the accelerator effect within project-based sectors.
B) projecting always takes place in a particular institutional context which is typically defined at the national level by the national business system in which project-based forms are structured into project-based sectors
C) transaction cost economics that analyses the preferred relationship between supplier and owner for a given package
D) the questions for the owner revolve around how critical the task package is for project delivery and the technological complexity of the task package.

Answer 2

A

Question 3

Match the Force with the aspects of contracting strategy
-Nature of transaction

A) capitalist economies are inherently cyclical and those cycles are reflected in the dynamics of supply sectors where the amplitude of the cycle at the macroeconomic level is amplified by the accelerator effect within project-based sectors.
B) projecting always takes place in a particular institutional context which is typically defined at the national level by the national business system in which project-based forms are structured into project-based sectors
C) transaction cost economics that analyses the preferred relationship between supplier and owner for a given package
D) the questions for the owner revolve around how critical the task package is for project delivery and the technological complexity of the task package.

Answer 3

B

Question 4

Match the Force with the aspects of contracting strategy
-Structure of the supply

A) capitalist economies are inherently cyclical and those cycles are reflected in the dynamics of supply sectors where the amplitude of the cycle at the macroeconomic level is amplified by the accelerator effect within project-based sectors.
B) projecting always takes place in a particular institutional context which is typically defined at the national level by the national business system in which project-based forms are structured into project-based sectors
C) transaction cost economics that analyses the preferred relationship between supplier and owner for a given package
D) the questions for the owner revolve around how critical the task package is for project delivery and the technological complexity of the task package.

Question 5

Match the Force with the aspects of contracting strategy
-Economic cycle

A) capitalist economies are inherently cyclical and those cycles are reflected in the dynamics of supply sectors where the amplitude of the cycle at the macroeconomic level is amplified by the accelerator effect within project-based sectors.
B) projecting always takes place in a particular institutional context which is typically defined at the national level by the national business system in which project-based forms are structured into project-based sectors
C) transaction cost economics that analyses the preferred relationship between supplier and owner for a given package
D) the questions for the owner revolve around how critical the task package is for project delivery and the technological complexity of the task package.

Question 6

Contracts are central to the commercial relationship between organizations in SPO.

Question 7

Matching with the correct basic types of complex contracts:
-Fixed price contracts

A) features a mix of contracts; there is a wide variety of such contracts add what unites them is the attempt to provide positive incentives within the contract to motivate collaborative relationships between parties.
B) those where the price is fixed for the supply of an agreed amount of work.
C) those whose goods and services are provided at an agreed rate as a function of an agreed parameter. These are used where it is possible to identify broadly the type of resources required, but not in enough detail to specify closely.

Question 8

Matching with the correct basic types of complex contracts:
-Reimbursable contracts

A) features a mix of contracts; there is a wide variety of such contracts add what unites them is the attempt to provide positive incentives within the contract to motivate collaborative relationships between parties.
B) those where the price is fixed for the supply of an agreed amount of work.
C) those whose goods and services are provided at an agreed rate as a function of an agreed parameter. These are used where it is possible to identify broadly the type of resources required, but not in enough detail to specify closely.

Question 9

Matching with the correct basic types of complex contracts:
-Incentive contracts

A) features a mix of contracts; there is a wide variety of such contracts add what unites them is the attempt to provide positive incentives within the contract to motivate collaborative relationships between parties.
B) those where the price is fixed for the supply of an agreed amount of work.
C) those whose goods and services are provided at an agreed rate as a function of an agreed parameter. These are used where it is possible to identify broadly the type of resources required, but not in enough detail to specify closely.

Question 10

Under the fixed price contracts, it is in the interests of the supplier to generate work to be done.

Question 11

Those tendering for a fixed price contracts have an interest in maximising the contract value, subject to the constraint that they are competing with others for the contract.

Question 12

Who is typically responsible for the commercial interface in SPO:

A) Delivery organizations
B) Both owner and delivery teams.
C) Project accountants
D) Split between the owner project team and the owner commercial team.

Question 13

Matching
The project lifecycle from the point of view of a supplier can be viewed as a sequence of generic phases:
-Support

A) the process of moving from invitation to tender negotiating a successful contract. It answers the question what is our offer to the owner and does the project fit our portfolio?
B) the process of delivering the output specified in the owner's scope. It answers the question have we delivered the outputs to the owner to the agreed schedule, budget, and quality level?
C) about business development through understanding the market and identifying those owners that are likely to be initiating projects.
D) is about ensuring the availability of the output through life to enable the owner to achieve the outcomes desired by the project mission.

Question 14

Matching
The project lifecycle from the point of view of a supplier can be viewed as a sequence of generic phases:
-Develop business

A) the process of moving from invitation to tender negotiating a successful contract. It answers the question what is our offer to the owner and does the project fit our portfolio?
B) the process of delivering the output specified in the owner's scope. It answers the question have we delivered the outputs to the owner to the agreed schedule, budget, and quality level?
C) about business development through understanding the market and identifying those owners that are likely to be initiating projects.
D) is about ensuring the availability of the output through life to enable the owner to achieve the outcomes desired by the project mission.

Question 15

Matching
The project lifecycle from the point of view of a supplier can be viewed as a sequence of generic phases:
-the process of moving from invitation to tender negotiating a successful contract. It answers the question what is our offer to the owner and does the project fit our portfolio?
B) the process of delivering the output specified in the owner's scope. It answers the question have we delivered the outputs to the owner to the agreed schedule, budget, and quality level?
C) about business development through understanding the market and identifying those owners that are likely to be initiating projects.
D) is about ensuring the availability of the output through life to enable the owner to achieve the outcomes desired by the project mission.

Question 16

Matching
The project lifecycle from the point of view of a supplier can be viewed as a sequence of generic phases:
-Deliver

A) the process of moving from invitation to tender negotiating a successful contract. It answers the question what is our offer to the owner and does the project fit our portfolio?
B) the process of delivering the output specified in the owner's scope. It answers the question have we delivered the outputs to the owner to the agreed schedule, budget, and quality level?
C) about business development through understanding the market and identifying those owners that are likely to be initiating projects.
D) is about ensuring the availability of the output through life to enable the owner to achieve the outcomes desired by the project mission.

Question 17

How should the commercial interface be designed in order to incentivize collaborative behaviours and collaborative culture on the project:

A) Transactional
B) Transformational
C) Relational
D) Partnering

Question 18

The development of collaborative relations greatly facilitates innovation.