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Question 1203

In a fixed time and budget project, the customer wants the development of a core component to be based on agile practices, as the final scope of the requirement has not yet been fully developed. The project manager is participating in contract development with the sales team and wants to ensure that development costs do not impact the profitability of the project.

Which two controls should the project manager incorporate into the contract to specifically address the development of the core component? (Choose two.)

    Correct Answer: C, D

    To ensure that development costs do not impact the profitability of the project while accommodating agile practices for the core component, the project manager should tier the contract for fixed and agile components. This allows for clear distinctions between fixed-price elements and those that can be adjusted based on evolving requirements. Additionally, limiting the number of iterations for development introduces a control to prevent cost overruns while still allowing for the iterative nature of agile development.

Discussion
UppersquareCapitalOptions: CD

Tiering the contract for fixed and agile components (Option C) and limiting the number of iterations for development (Option D) are the most effective controls for managing development costs and ensuring the profitability of the project while allowing for the flexibility needed in agile practices.

ELTIGANIOptions: CD

incorporating controls to tier the contract and limit iterations provides a structured yet flexible approach to managing the development of the core component under agile practices while safeguarding project profitability.