Procurement Without the Pain (Part 2 of 2): Why Contract Types Confuse PMP Students

PMP Exam Prep with Scott Payne

If you need help simplifying PMP concepts in a way that really makes sense, reach out and I’ll teach you and create a plan that works for you: 757-759-5282.

This is Part 2 of our deep dive into procurement, inspired by a listener who texted me after struggling with procurement questions on a mock exam.

In Part 1, we broke down the contract families — Fixed Price, Cost-Plus, and Time & Materials — and made it clear who benefits and why. We even cleared up the biggest confusion point: Cost-Plus vs. T&M (Receipts vs. Rate Card).

Now in Part 2, we take it further and uncover why PMI often wants you to pick the process answer instead of the contract answer.

We cover:

• Why the exam loves “use the organizational procurement process”

• Breaking down the acronyms: make-or-buy, sourcing plan, RFX, evaluation criteria, and MSA (with simple, fun analogies)

• What multi-tiered contracts really are and why PMI includes them

• The top exam traps in procurement and how to avoid them

• Quick-fire scenarios that tie it all together

📌 Key takeaway from Part 2: PMI doesn’t want cowboy project managers freelancing contracts. They want you to know when to lean on the organizational process, and how risk, governance, and structure create trust and clarity.

👉 Want Scott to build you a study plan, review your weak spots, or coach you all the way to PMP success? Call or text 757-759-5282.