APM PMQ - Section 2.6 - Procurement
Exam Questions and Answers with
Verified Solutions | Latest Updated 2026
What is procurement in The process of acquiring external
projects? goods and services for the project.
What is a procurement It sets out how the project will
strategy? procure and manage goods and
services and the rules for doing so
clearly and consistently.
Why should the procurement To reduce delay and avoid poor
strategy be created early? decisions by setting clear rules,
responsibilities and processes from
the outset.
Give four reasons a It supports fair and transparent
procurement strategy is competition, sets a sound supplier
important. selection process, ensures
legislation and trade rules are
followed (e.g., tariffs and sanctions),
and clarifies delegated authority for
decisions.
How does a procurement It helps ensure quality expectations
strategy support quality and are defined and managed through
risk management? supplier selection and contract
terms, and it helps manage potential
supply chain risks through clear
sourcing and governance
, arrangements.
Name the typical contents Make-or-buy,
(key sections) of a single/integrated/multiple suppliers,
procurement strategy. conditions and forms of contract,
supplier reimbursement, contractual
relationships, and supplier selection
process.
What is a make-or-buy Deciding whether to produce
decision? in-house or buy externally, based on
capacity, cost, speed, required
quality and control/risk.
Single vs integrated vs Choosing the supplier model affects
multiple suppliers-what's the coordination effort, risk and
key idea? performance (e.g., integration
improves collaboration; multiple
suppliers increases coordination
complexity).
What are conditions and forms The legally binding terms setting
of contract? responsibilities (time, quality,
payment, change, risk, dispute
resolution etc.); common standard
forms include JCT and NEC.
What is the overall purpose of To achieve best value, with a
a supplier selection process? process that is transparent and fair
and follows organisational rules.
Why do organisations use To achieve best value for money
competitive tendering? while ensuring a fair and transparent
Exam Questions and Answers with
Verified Solutions | Latest Updated 2026
What is procurement in The process of acquiring external
projects? goods and services for the project.
What is a procurement It sets out how the project will
strategy? procure and manage goods and
services and the rules for doing so
clearly and consistently.
Why should the procurement To reduce delay and avoid poor
strategy be created early? decisions by setting clear rules,
responsibilities and processes from
the outset.
Give four reasons a It supports fair and transparent
procurement strategy is competition, sets a sound supplier
important. selection process, ensures
legislation and trade rules are
followed (e.g., tariffs and sanctions),
and clarifies delegated authority for
decisions.
How does a procurement It helps ensure quality expectations
strategy support quality and are defined and managed through
risk management? supplier selection and contract
terms, and it helps manage potential
supply chain risks through clear
sourcing and governance
, arrangements.
Name the typical contents Make-or-buy,
(key sections) of a single/integrated/multiple suppliers,
procurement strategy. conditions and forms of contract,
supplier reimbursement, contractual
relationships, and supplier selection
process.
What is a make-or-buy Deciding whether to produce
decision? in-house or buy externally, based on
capacity, cost, speed, required
quality and control/risk.
Single vs integrated vs Choosing the supplier model affects
multiple suppliers-what's the coordination effort, risk and
key idea? performance (e.g., integration
improves collaboration; multiple
suppliers increases coordination
complexity).
What are conditions and forms The legally binding terms setting
of contract? responsibilities (time, quality,
payment, change, risk, dispute
resolution etc.); common standard
forms include JCT and NEC.
What is the overall purpose of To achieve best value, with a
a supplier selection process? process that is transparent and fair
and follows organisational rules.
Why do organisations use To achieve best value for money
competitive tendering? while ensuring a fair and transparent
