Home Forums PMP Questions and Answers Discussion Procurement Management Question 16

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  • #2514
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    A routine audit of a cost reimbursable contract determines that overcharges are being made. If the contract does not specify corrective action. The buyer should?

    a) Halt payments on the disputed amount
    b) Halt all payments until the problem is corrected
    c) Void the contract and start legal action to recover overpayments
    d) Change the contracts to require more frequent audits

    #2515
    admin
    Keymaster

    The correct answer is A.

    Notice that choice B is really saying “halt all payments.” Halting all payments would be a breach of contract on the buyer’s part. Choice C is too severe and cannot be done unilaterally. Choice D does not solve the problem presented. The best answer is A.

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