PMP Exam Set C – Q31

You are authorized to approve expenditures above $15,000. For the last several weeks you have been negotiating the terms and pricing of a contract with a vendor, and you want to keep costs as low as possible. This has been a very difficult negotiation process. A colleague suggests you tell the vendor you can only approve expenses below $10,000 as a way to keep the price low. What do you do?

A. Ask for binding arbitration.
B. Tell the vendor you are only authorized to approve expenses under $10,000.
C. Do not follow the colleague’s advice.
D. Put a deadline on the negotiation completion.

C. Do not follow the colleague’s advice.