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GAQM PPM (PPM) Practice Tests & Test Prep by Exam Edge - Topics



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Understanding what is on the GAQM PPM exam is crucial step in preparing for the exam. You will need to have an understanding of the testing domain (topics covered) to be sure you are studying the correct information.

  • Directs your study efforts toward the most relevant areas.
  • Ensures efficient and adequate preparation.
  • Helps identify strengths and weaknesses.
  • Allows for a focused approach to address gaps in understanding.
  • Aligns your preparation with the exam's expectations.
  • Increases the likelihood of success.
  • Keeps you informed about your field's current demands and standards.
There is no doubt that this is a strategic step in achieving certification and advancing your career.

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GAQM Professional in Project Management Exam Blueprint

GAQM Professional in Project Management - Exam Topics Sample Questions

Which of the following is true for a lump sum contract?

Correct Answer:
both the buyer and seller agree on a set price for the project.


in a lump sum contract, both the buyer and the seller agree on a set price for the entire project. this type of contract is also known as a fixed price contract. the key characteristic of a lump sum contract is that it involves a single agreed-upon price for all work performed, regardless of the actual costs that might arise during the execution of the project. this agreed price is established based on a detailed assessment and mutual understanding of the project's scope and requirements.

contrary to other options, in a lump sum contract, the price is not determined unilaterally by either the buyer or the seller alone, nor is it set by an outside party. instead, both parties negotiate and concur on the total cost before the project begins. this process requires clear and detailed project specifications to be set in advance. these specifications help in avoiding ambiguity and potential disputes over the course of the project.

the nature of a lump sum contract implies that the risk of cost overruns is generally borne by the contractor (seller), since they agree to complete the project within the agreed price. this setup incentivizes the contractor to manage the project efficiently and control costs effectively. however, it also provides cost certainty for the client (buyer), making it a preferred choice in scenarios where a fixed budget is a priority.

it's important to note that while lump sum contracts and fixed price contracts are often used interchangeably, they are most applicable and beneficial when the scope and specifications of the project are well-defined. this clarity helps prevent disputes and ensures that both parties have a clear understanding of what is expected, thereby facilitating smoother project execution and management.