Project Management Professional (PMP) — Question 1278

A company is moving its headquarters to another city. The project manager responsible for the assignment has been using a predictive approach during the transition. However, the information systems will be migrated using an agile approach. The project manager needs to decide which kind of contract to sign with the vendor responsible for migrating the systems. The project manager is concerned about controlling finances while delivering results.

How should the project manager address this situation?

Answer options

• A. Sign a single agreement for the whole project.
• B. Confirm payment after each project retrospective.
• C. Negotiate payment after all project migration is completed.
• D. Use fixed-price increments as user stories are completed.

Correct answer: D

Explanation

The correct answer is D because using fixed-price increments allows for financial control and ensures that payments are made based on completed work, aligning with the agile approach. Options A and C do not offer flexibility or control over finances during the project, while option B may not align well with agile practices, as it could lead to delayed payments and financial strain.