Program Management Professional (PgMP) — Question 219

Eric is the project manager of the NQQ Project and has hired the ZAS Corporation to complete part of the project work for Eric's organization. Due to a change request the ZAS Corporation is no longer needed on the project even though they have completed nearly all of the project work. Is Eric's organization liable to pay the ZAS Corporation for the work they have completed so far on the project?

Answer options

• A. It depends on what the outcome of a lawsuit will determine.
• B. No, the ZAS Corporation did not complete all of the work.
• C. It depends on what the termination clause of the contract stipulates.
• D. Yes, the ZAS Corporation did not choose to terminate the contract work.

Correct answer: C

Explanation

The correct answer is C, as the obligations of Eric's organization to pay ZAS Corporation hinge on the specific terms outlined in the termination clause of their contract. Options A and D are incorrect because they do not address the contract specifics, while option B overlooks the fact that completed work may still warrant payment despite not all tasks being finished.