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Exam PMP topic 1 question 106 discussion

Actual exam question from PMI's PMP
Question #: 106
Topic #: 1
[All PMP Questions]

A third-party supplier demands payment for the services provided for a project. The agreement was that payment would be made after the organization receives payment from the client. The third-party supplier lacks the capital to meet their payroll and has informed the project manager that if they do not receive payment quickly, they will withdraw team members from the project.
What should the project manager do?

  • A. Explain the third-party supplier situation to the client and request payment.
  • B. Inform the client that the project must be delayed until payment is received.
  • C. Reassign resources from other projects to pay the third-party supplier.
  • D. Process a bank loan to pay the payroll of the third-party supplier.
Show Suggested Answer Hide Answer
Suggested Answer: A 🗳️
by victory108 at May 26, 2023, 3:56 p.m.

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LotToLearn
1 month, 3 weeks ago
and if its delay from our side as client delayed our payment then its our moral responsibility to keep some reserve for such situation
upvoted 1 times
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LotToLearn
1 month, 3 weeks ago
how A is right ? its venders liability to pay salary . then as per payment term if we don't pay then its our mistake which is not here. its clear black mailing / un ethical situation where vender is asking for payment but then as per first small step we un fortunately need to pay him and then black list vender
upvoted 1 times
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odylec
10 months, 1 week ago
All answers are wrong. You CAN'T ask the client to pay earlier for YOUR problem with the third-party supplier. The only logic answer ic C IF and only IF you know that you have the resources from another project to cover it.
upvoted 1 times
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Tuanit
1 year, 1 month ago
The question lacks of information to make it complete. There is no information proving that the issue is pending on client's side. If the question expects readers to infer that the project has been totally delivered and the client is struggling with payment, then it should also expect the readers to infer that the project is still on-going and the mentioned supplier is just one part of the whole.
upvoted 1 times
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Lucky_Cindy
1 year, 2 months ago
Selected Answer: A
answer A is most accurate
upvoted 1 times
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WhiteTable
1 year, 3 months ago
But then, the question says there is an "agreement " which says payment shall be after receiving payment from client. If such, how can the PM asks client to pay first?
upvoted 2 times
Jamrock
1 year, 2 months ago
Correct. you are reading correctly but your reasoning is faulty. it is not that the client is paying first or the agreement is that the client pays the organization FIRST; client is paying the organization and THEN 3-party supplier will be paid by the Org as per the agreement. ie. request payment from the client to the Org so as to be able to pay 3rd party supplier.
upvoted 2 times
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victory108
1 year, 6 months ago
Selected Answer: A
A. Explain the third-party supplier situation to the client and request payment
upvoted 2 times
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C (25%)
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