PMI Módulo 1 Exam - Revisión de Intentos

12/11/23, 23:58

PMI Módulo 1 Exam: revisión de intentos

Página Principal / Mis cursos / PMISep-202320 / 1. Fundamentos y conceptos básicos de la Gestión de Proyectos / PMI Módulo 1 Exam

Comenzado el domingo, 12 de noviembre de 2023, 23:36 Estado Finalizado Finalizado en domingo, 12 de noviembre de 2023, 23:58 Tiempo 22 minutos 7 segundos empleado Calificación 8,67 de 20,00 (43,33%)

Pregunta 1 Finalizado

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What communication technique is based on how the receiver reacts to a message or a situation? a. Non-verbal b. Presentations c. Feedback d. Communication competence

Explanation Feedback focuses on information about reactions to communications or to a situation. Feedback supports interactive communication between the project manager, the team, and all other projects. Examples include coaching, mentoring, and negotiation.  Communication competence refers to the ability to consider factors such as the clarity of the proposed objectives when transmitting important messages. It describes a group of skills that promote and enable purposeful interactions, communication efficiency, and leadership behaviors.  Non-verbal communication includes gestures, tone of voice, and facial or body expressions. Team members must take care of the way they communicate, not only with what they say but also with the non-verbal language they use when doing so.  Presentations involve the formal delivery of information or documentation. For a presentation to be successful, you must take into consideration the audience's expectations and needs, as well as the needs and objectives of the project and the project team.    References PMBOK Guide, v6, PMI. Chapter 10.2.2.3   La respuesta correcta es: Feedback

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 2 Finalizado

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What type of power is indispensable for a project manager? a. Charismatic b. Expert c. Referent d. Formal

Explanation Formal (or positional) power is the type of authority that is indispensable in a project. This power is given to the project manager responsibilities of the project manager and recognizes the fact that the company recognizes this leadership. The Project Management Institute (PMI) defines up to 14 types of power, with formal, expert, referent, and charismatic being the most important four.  Expert power is not indispensable for a project manager. A project manager can rely on experts for support, and you do not need to know everything to be able to lead a team well.  Charismatic (or personal) power is not indispensable for a project manager. This type of authority consists of convincing and leading you team thanks to the charisma of the project manager. This can be a helpful asset, but it is not essential. Referent power is not indispensable. This type of power consists of a team's respect for their leader. It is a type of leadership power that is gained by knowing how to listen, make a team, and get the best out of each team member. Not every project manager has this power. It is not a type of authority that you can obtain immediately, but something gained over time. References PMBOK Guide, v6, PMI. Chapter 3.4.4.3   La respuesta correcta es: Formal

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 3 Finalizado

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How should you create a project timeline? Arrange the options in the correct order. Develop the timeline

Fourth

Sequence the activities

Third

Estimate the durations

Second

Identify activities

First

The timeline of a project is the plan of the project's schedule and due dates that indicate when each activity will be carried out. The steps to follow to create it are: Identify the activities. If this project was the construction of a house, you could define the following activities: preparing the terrain, building the roof, laying the brickwork, installing the facilities, creating the structure, and laying the floor. Sequencing the activities. In this step, you establish which activities come before others, defining the dependencies between activities. For example, the structure of a house should be created before the roof. Continuing with the same example, the sequence of activities would be: prepare the terrain, create the structure, lay the brickwork, build the roof, install the facilities, and lay the floor. Estimate the durations. You need to establish an estimated duration for each activity, whether based on previous experience or by asking subject matter experts. An estimation in days of the above-mentioned activities would be: prepare the terrain (12 days), create the structure (20 days), lay the brickwork (32 days), build the roof (16 days), install the facilities (15 days), and lay the floor (14 days). Develop the timeline. The sequence of the described processes gives you data that you can organize to create an accurate project timeline. References PMBOK Guide, v6, PMI, Chapter 6.5 La respuesta correcta es: Develop the timeline → Fourth, Sequence the activities → Second, Estimate the durations → Third, Identify activities → First

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 4 Finalizado

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How should a claim be resolved in procurement management? Arrange the actions into the correct order. Appeal

Fifth

Claim

Second

Negotiation

Fourth

Dispute

Fifth

Arbitration

Sixth

Trial

Third

In procurement management, also known as acquisition management, a claim is a formal disagreement between a seller and a buyer that should be resolved in the following order: 1. Claim 2. Negotiation 3. Dispute 4. Arbitration 5. Appeal 6. Trial The claim is made. This can be done by either the buyer or the seller. An example of a claim is a provider complaining that the project manager rejected a deliverable that the provider considered to be well-executed. The next step is negotiation. Whenever there is a disagreement, you should speak to the other party and understand their point of view to try and reach a mutually beneficial resolution. The next step is dispute. If the negotiation does not resolve the claim, the situation is named a dispute. To resolve a conflict, a third party will be required. The next step is arbitration. Arbitration is the intervention of an independent third party who will seek to find a middle ground between both parties. An example of this person would be a mediator, an independent consultant, or a facilitator. The next step is appeal. If arbitration does not resolve the conflict, the situation becomes an appeal. An appeal can only be resolved in court. The last step is trial. This involves taking the matter before a judge to resolve the appeal. This is the last option, and it should be avoided whenever possible. References PMBOK Guide v6, PMI, Chapter 12.3.2

La respuesta correcta es: Appeal → Fifth, Claim → First, Negotiation → Second, Dispute → Third, Arbitration → Fourth, Trial → Sixth

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 5 Finalizado

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After a disagreement, a client refuses to speak to the project manager. Who should resolve this situation? a. The financial director b. The project manager c. The sponsor and the project manager d. The project management team

  Explanation The sponsor and the project manager should resolve the situation. One of the functions of the sponsor is to give the project manager support when his or her possible actions are limited.  The project manager is responsible for resolving the situation, but he or she cannot do it alone. Because the client refuses to communicate with the project manager, the project manager's capacity to resolve this situation successfully is limited.  The project management team is not responsible for resolving this situation. The team is an extension of the project manager and therefore also has limited capacity for action in this situation.  The financial director is not responsible for resolving this situation. The financial director's role is related to providing support to the economic requirements of the project. The financial director does not manage the key stakeholders of the project.    References PMBOK Guide v6, PMI, Glossary.   La respuesta correcta es: The sponsor and the project manager

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 6 Finalizado

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 You create a cost-reimbursable contract including incentives with a provider. The target fee is $800, the target cost is $8,000, and the incentive split for the provider is 40 percent. How much will you have to pay the provider if the real cost is $7,000?    a. $7,800 b. $9,200 c. $8,200 d. $8,800

Explanation With a cost-reimbursable contract that includes an incentive, the provider is reimbursed for the costs that they have had to incur to provide the service, they are paid an additional fee or benefit, and the$y8a,2re00given an incentive fee that is calculated according to their performance. This type of contract uses the following concepts:  Target cost - This is a provisional cost estimating how much the costs of the services will be, agreed upon by both parties before signing the contract. Target fee - This is a provisional fee agreed upon by both parties before signing the contract. It sets the fee that the provider will receive if they comply with the target cost.  Real cost - This is the real cost that the provider incurred when providing the service. Incentive split for the provider - This is the ratio split that is used to calculate how much incentive or penalty the provider will receive. The split is applied to the difference between the target cost and the real cost. In this scenario, the calculation to decide how much to pay the provider would be the following: The real cost is $7,000, compared to the target cost, which is $8,000. So, you can see that the provider has achieved a saving of $1,000 ($8,000 - $7,000 = $1,000).   Next you multiply the saving ($1,000) by the incentive split (40 percent) to get the incentive to pay the provider: $1,000 x 40% = $400.  In total, you will have to pay the provider for the real costs that they incurred ($7,000) as well as the target fee ($800), and the incentive ($400). $7,000 + $800 + $400 = $8,200.  References PMBOK Guide v6, PMI, Chapter 12.1.2 La respuesta correcta es: $8,200

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 7 Finalizado

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What can a virtual team that has members living in different parts of the world not do? a. Understand oher cultures b. Retrospectives c. Daily stand-up meetings d. Co-location

A virtual team cannot perform co-location, because this means to have the entire team work in the same physical location. When possible, this approach favors indirect communication, also known as osmotic communication. A virtual team can carry out daily stand-ups. It is recommended to hold these meetings in person when possible, but it is not necessary. This meeting should not last longer than 15 minutes and should be dedicated to answering three questions: What did you do yesterday? What are you going to do today? and Are there any impediments in your way? If the team is located in different countries around the world, the daily stand-up can be done via videoconference. A virtual team can carry out retrospective meetings. In these meetings, you discuss how the team worked during the previous sprint or iteration so that, in the next work cycle, you can improve the processes and interactions as much as possible. If your team is virtual, you should take into account possible ways to improve virtual communications in this meeting. A virtual team can understand other cultures. In fact, having a team with members from all over the world should encourage diversity and cultural exchange within the team. Understanding other cultures can help a project team to develop comprehension and other teamwork skills References PMBOK Guide, v6, PMI. Chapter 9.4.2

La respuesta correcta es: Co-location

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 8 Finalizado

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What is a business case? a. A study of the viability of a project b. A tool to determine how to communicate during a project is not a business case. c. A detailed plan that determines how a project will be executed d. A document that formally closes a project

Explanation A business case is a viability study of a project, in which the possible benefits to be gained and the necessary costs to finish the project are analyzed. It also assesses whether the project's objectives are aligned. For example, if you work in a software development company it may not make sense to carry out a project to manufacture shoes. A detailed plan of how a project will be carried out is not a business case. This describes a project management plan. A document that formally closes a project is not a business case. This describes a project closure document. This document is used as written proof for all the stakeholders in a project that the project has been finished. A tool to determine how to communicate during a project is not a business case. This describes a communications matrix. The communications matrix details each of the stakeholders, the communications that there should be between them, and how this communication should be carried out. Among the stakeholders it is important to identify who is responsible for communicating with whom, and how this communication should be carried out. For example, a communication like a monthly performance report should be carried out by email from the management team and should be directed to the client, the sponsor, and a representative of the financial entity.    References PMBOK Guide, v6, PMI. Glossary    La respuesta correcta es: A study of the viability of a project

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 9 Finalizado

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You are working on a project to develop a website for an important ecommerce company. Which two statements are examples of project scope definition for this project? (Choose 2.) a. The website must contain six sections, one for each of the company's product types. b. The website must not cost more than $180,000. c. The website must allow users to make online purchases from anywhere in the world. d. The website must be finished before October 18

Explanation Specifying that the website must contain 6 sections, one for each of the company's product types is an example of defining the project scope. The project scope describes what the final product needs to contain and the design of the product. Specifying that the website must allow users to make online purchases from anywhere in the world is also an example of defining the project scope. This defines the scope by describing how the website needs to work and refers to the product's function. Defining the project scope involves developing a detailed description of the project and the product. The key benefit of this process is that it describes the limits of the product or service, defines the required result, and specifies the evaluation criteria for the project.  Specifying that the website must be finished before October 18 is not a way of defining the scope of the project. It defines the duration o the project. Specifying that the website must not cost more than $180,000 is not a way of defining the scope of the project. It defines the cost of the project.    References PMBOK Guide, v6, PMI. Chapter 5.3   Las respuestas correctas son: The website must allow users to make online purchases from anywhere in the world., The website must contain six sections, one for each of the company's product types.

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 10 Finalizado

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Which three of the following actions are recommended to ensure an effective meeting? (Choose three.) a. Check that the appropriate people are invited to the meeting. b. Leave some freedom in the topics to be discussed c. Ensure punctuality at the start of the meeting only d. Define and communicate the meeting agenda prior to the meeting. e. Ensure that the people invited attend.

Meetings are a fundamental tool in project management because they allow you to communicate and interact with several stakeholders at the same time, finding joint solutions and reaching a common understanding about the project's themes. To ensure effective meetings, the Project Management Institute (PMI) recommends the following actions: Define and communicate the meeting agenda prior to the meeting. Ensure punctuality at the start and end of the meeting. Check that the appropriate people are invited to the meeting. Ensure that the people invited attend. Ensure that the attendees remain focused on the appropriate topics. Manage the expectations, issues, and conflicts that may arise during the meeting. Register the decisions made and actions assigned. Leaving some freedom in the topics to be discussed is not recommended for efficient, effective meetings. To have an effective meeting, the person running the meeting should make sure that the attendees focus on the appropriate topics to resolve them effectively. Punctuality should be ensured at both the start and the end of the meeting. References PMBOK Guide v6, PMI, Chapter 10.2.2.6   Las respuestas correctas son: Check that the appropriate people are invited to the meeting., Ensure that the people invited attend. , Define and communicate the meeting agenda prior to the meeting.

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10/20

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 11 Finalizado

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Which three options are steps you should you take if you have to resolve a problem related with the quality of a project? (Choose three.) a. Verify the efficiency of the solution b. Select the cheapest solution c. Indetify the cause d. Define the problem

The three steps you should take are to define the problem, identify the problem's cause, and validate the effectiveness of the solution. Problem solving is a process designed to resolve issues or challenges and is fundamental to improving the quality of a product. Implementing problem solving in a structured way will help other project managers to be able to use this knowledge efficiently. These are the steps to follow to resolve a problem in a structured way: Define the problem. Identify the problem's root cause. Look for possible solutions. Choose the most adequate solution. Execute the solution. Validate the effectiveness of the solution. You should not automatically select the cheapest solution to the problem. You should select the most adequate solution for the project as a whole. Every different problem will have a different level of impact on the project, and you need to evaluate the cost-benefit of every solution to identify which solution you should choose. If a solution is more expensive to implement but also much more effective in resolving the problem, i is likely to be a more adequate solution. References PMBOK Guide v6, PMI. Chapter 8.2.2.7   Las respuestas correctas son: Indetify the cause, Verify the efficiency of the solution, Define the problem

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 12 Finalizado

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 Which two of the following statements about estimation through planning poker are true? (Choose two.) a. It only serves to estimate the duration of tasks b. It is done with cards c. Only the team member with the most expertise estimates d. It is a technique for group estimations

Explanation Planning poker is done with cards. Each member of the team has a deck of cards with the numbers 0, 0.5, 1, 2, 3, 5, 8, 13, 20, 40 among others. To play, the task that is going to be estimated is described, and each team member has to choose the card they feel represents the duration the task should take and place it face-down on the table. Once everyone has placed their card on the table, they are all turned over at the same time. In this way, all the estimations are seen at the same time, and the team will debate their way to a consensual decision about the duration of each task.  Planning poker is a technique for group estimations. Planning poker is a way of facilitating a team session, and its benefit is based on hearing the opinion of all members, as well as ensuring that the whole team understands the scope and duration of the task.  The team member with the most expertise is not the only one who makes estimations with planning poker. All members of a team make estimations with planning poker, drawing on both the expertise of the experts in the team and the new approach of a junior member. Planning poker does not only serve to estimate the duration of tasks. Although planning poker is used to estimate the duration of tasks, it can also be used to estimate any other quantifiable element, like cost, impact, risk, etc. References Agile Estimating and Planning, 2005, Mike Cohn. Chapter 6   Las respuestas correctas son: It is a technique for group estimations, It is done with cards

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 13 Finalizado

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 Which of the following tools and techniques is ideal for gauging the duration of actions in a timeline? a. Cause and effect diagram b. Expected monetary value (EMV) c. Pareto principle d. Analogous estimation

Explanation Analogous estimation is a technique based on making estimations regarding time or cost. This technique consists of estimating by comparing with previously finished components. For example, to estimate how much you will spend making a website for a new client, you can check how long it took you to make your last website. You analyze the requirements for each component, and you add time to the estimation if you consider that the new site is more complicated than the last one. A cause-and-effect diagram is not a tool for making estimations. It is a diagram designed to help you detect the root cause of a problem. This type of diagram separates the causes of the problem in separate branches, which helps to identify the principal or root cause of the problem. Pareto is not a tool for making estimations. It serves to help you identify where to find problems. The Pareto principle is also known as the 80/20 principle. It holds that 80 percent of the consequences are caused by 20 percent of the causes. For example, in a software development project, you list the number of user errors and the number of different types of users. After this analysis, you note that a small percentage of users (this is the 20 percent) are responsible for a large percentage of the total errors (the 80 percent). If, in this situation, you study the requirements and experience of these few users, resolving the issues that they have, you will drastically reduce the number of total errors. Expected monetary value (EMV) is not a tool for carrying out duration estimations. EMV is a risk management technique used to estimate the severity of the impact that risks would have on the objectives of the project if they occurred. It is calculated considering all the risks and, for each of them, multiplying the value of its possible impact by the probability of it happening. Adding up the severities of all the risks would give you the EMV of the project. References PMBOK Guide, v6, PMI. Chapter 6.4   La respuesta correcta es: Analogous estimation

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 14 Finalizado

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You are working on a project. The program manager contacts you to communicate that due to a change of conditions in the program, the objectives of your project will need to be revised. In this situation, which two statements are true? (Choose two.) a. The program manager can influence the project. b. The project manager is responsible for setting the objectives of the project. c. Programs have no relation with projects. d. Programs are made up of related projects.

  Explanation A program is a group of related projects whose management is carried out in a coordinated way to gain benefits that would not be obtained if the projects were managed individually. The program manager is above the project manager in the company hierarchy and can set the objectives for the projects that make up the program. The program manager can influence the project. This is because the program manager will align the objectives of the project so that it supports the needs of the program. In fact, it is normal for the program manager to carry out a periodic review of how each project manager is managing their projects, and to ask for changes to ensure the success of the program.  It is not true that programs have no relation with projects. Programs are made up of related projects.  It is also not true that the project manager is responsible for setting the objectives of the project. The project objectives are set by the company and the client. The program manager will be responsible for establishing the objective of the project and ensuring that it aligns with the needs of the program.    References PMBOK Guide, v6, PMI. Chapter 1.2.3   Las respuestas correctas son: The program manager can influence the project., Programs are made up of related projects.

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 15 Finalizado

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Which of the following documents provides a project manager with his or her authority? a. The contract b. The work performance report c. The business case d. The project charter

Explanation The project charter provides the project manager with his or her authority. This is an internal company document which establishes the limits of the project and gives the project manager the formal authority in the project. Once it is signed by the sponsor, the project has begun. The contract does not reference the authority of the project manager. In fact, the contract is usually elaborated before the assignment o the project manager because it is a high-level document between the organization and the client.  The business case does not reference the authority of the project manager. This document is a viability analysis that the organization carries out before signing the contract or assigning the project manager. The work performance report does not provide the project manager with his or her authority. It is a document that is used during the elaboration of the project, not during its creation.  References PMBOK Guide v6, PMI. Chapter 4.1    La respuesta correcta es: The project charter

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 16 Finalizado

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 You are carrying out a series of repetitive actions to ensure the correct functioning of the organization. These tasks are always the same, and they repeat every year a. Program management b. Project management c. Operations management d. Portfolio management

Explanation When you carry out repetitive actions that are always the same and that repeat every year in order to ensure the correct functioning of the organization, you are performing operations management. When you carry out repetitive actions that are always the same and that repeat every year in order to ensure the correct functioning of the organization, you are not performing program management. Programs are a group of related projects. When you carry out repetitive actions that are always the same and that repeat every year in order to ensure the correct functioning of the organization, you are not performing portfolio management. Portfolios are a group of programs, projects, and subsidiary portfolios grouped together in order to facilitate organizational objectives. When you carry out repetitive actions that are always the same and that repeat every year in order to ensure the correct functioning of the organization, you are not performing project management. Every project is individual in nature and always includes a level of uncertainty. References PMBOK Guide, v6, PMI. Chapter 1.2.3.4.    La respuesta correcta es: Operations management

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 17 Finalizado

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Which document is defined in the planning stage, after the project charter is created? a. Business case b. Cost baseline c. Benefits management plan d. Contract

The cost baseline is defined in the planning stage, after the project charter is created at the start of the project. The cost baseline is the version of the project's budget that has been approved by the key stakeholders. The project management team plans the project's costs, which is the budget. After a risk analysis, a contingency reserve is added. This is an amount of money assigned to the project in case the identified risks occur and become contingencies. The sum of the budget and the contingency reserve is the project's cost baseline and must be approved by the key stakeholders. The contract, business case, and benefits management plan form part of the project charter. The project charter recognizes the existence of the project within the company, gives authority to the project manager to carry it out, and describes the project's limits. In the project charter, a business analyst considers the client's request, reviews the project's viability, and creates the documents that describe this viability: the business case and the benefit management plan. After this, if all the parties are in agreement, the project is formalized through a contract. The contract includes the commitments, rights, and obligations established between the client who commissions the project, and the project management company that will carry out the project. The business case is a viability study of the project in which the project's potential benefits and necessary costs are analyzed. The business case should also include an analysis of whether the project's objectives are aligned with the company's strategic objectives. For example, if you work in a software development company, it does not make sense to take on a project to build shoes. The benefits management plan describes when and how the project's benefits will be obtained, measured, and monitored. References PMBOK Guide v6, PMI, Chapter 4.1

La respuesta correcta es: Cost baseline

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 18 Finalizado

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Which term defines the function assigned to a person within the scope of a project? a. Responsibility b. Authority c. Competency d. Role

The role defines the function assigned to a person in the scope of a project. There are a number of terms that are often confused when managing a project team. Project Management Institute (PMI) names and defines them as follows: Role: The function assigned to a person within the scope of the project. Examples of project roles are civil engineer, business analyst, and test coordinator. Authority: The ability to control an aspect of a project such as the ability to designate resources, permission to negotiate with suppliers, authorize payments, verify deliverables, etc. It is important that project members have a balance between authority and assigned responsibility. Responsibility: What an individual is expected to do and complete in the project. An example of this would be the drafting of the electrica distribution plans for a project to build a shopping center, the drafting of a business evaluation technical report, or the definition of a test plan for a pharmaceutical product. Competency: The knowledge and skills that an individual must have in order to carry out his assigned role in the project. If the team is not sufficiently trained, it can affect the performance of the project. An example of this would be that you must have knowledge of fluid mechanics, you must have collaborated in projects of more than $5 million, or you must be competent in spoken and written French. References PMBOK Guide, v6, PMI. Chapter 9.1.3.1.

La respuesta correcta es: Role

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PMI Módulo 1 Exam: revisión de intentos

Pregunta 19 Finalizado

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In a project constructing a block of apartments to sell as real estate, which two statements represent risks? (Choose 2.) a. The contract has already been signed. b. There may be an earthquake during construction. c. The general public may not buy houses if there is an economic crisis. d. The cost objective of the project is 21 million dollars.

Explanation A risk is an event or an uncertain condition that, if it occurs, will have an impact on the objectives of the project.  The public not buying houses due to an economic crisis and an earthquake during the construction of the buildings are two examples of risks. In the case of the economic crisis, this refers to an uncertain condition which, if it occurred, would result in a lack of sales, affecting the benefits of the project. In the case of the earthquake, this refers to an uncertain condition which, if it occurred, would lead to additional costs derived from repairs to material damaged by the earthquake, which would have an effect on the benefits of the project. The fact that the cost objective of the project is 21 million dollars is not a risk because it is not an uncertain fact. A risk would be any possible event that would put that objective in doubt.  The fact that a contract has been signed is not a risk. It is a fact. Risks are possible future events.    References PMBOK Guide, v6, PMI. Chapter 11.2    Las respuestas correctas son: There may be an earthquake during construction. , The general public may not buy houses if there is an economic crisis.

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12/11/23, 23:58

PMI Módulo 1 Exam: revisión de intentos

Pregunta 20 Finalizado

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 In a contract with incentives, a provider will get a bonus or receive a penalty depending on the results of their services. What is the main benefit of this type of contract? a. Minimizing risks b. Reducing costs c. Involving the provider in the project d. Saving time

Explanation The objective of a contract with incentives is to involve the provider in the objectives of the project. If the project succeeds, both the provider and the company stand to gain, otherwise both lose. A contract with incentives usually has a starting benefit for the provider. If the provider achieves any type of savings in the project, they will receive a percentage of the savings, which will be added to the starting benefit. On the other hand, if the provider causes losses in the project, they will be penalized a percentage of those losses.  The objective of a contract with incentives is not to reduce costs because part of any savings achieved must be given to the provider.  The objective of a contract with incentives is not to minimize risks. Risks do not have to do with cost alone, but also the project's safety, schedule, and issues. Rewarding or penalizing a provider will not make a project's risks disappear.  The main objective of a contract with incentives is not to save time. Although you could make a contract with incentives that penalize or reward the provider depending on their delivery dates, the main reason to create this kind of contract is to align the provider with the project's objectives and to ensure that they are committed to pulling in the same direction as your team to make your project a success.    References PMBOK Guide v6, PMI, Chapter 12.1.2   La respuesta correcta es: Involving the provider in the project

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