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Question 36/122

You are selecting a contractor or vendor for a project. You are concerned about project risk due to the technical nature of the project. What selection criteria will you use to reduce risk?

A. Contractor provides warranties that meet your specific time period

B. Contractor understands project requirements and possesses required skills and knowledge

C. Contractor uses a project management approach that ensures a successful project

Correct Answer: B

The best way to reduce project risk is to select a contractor who fully understands project requirements and possesses the required technical skills (Option B).
Why Option B is Correct?
* Technical expertise minimizes risks related to design flaws, delays, and cost overruns.
* A contractor with proven experience and skills can anticipate and address project challenges.
* IFMA's Project Management Core Competency emphasizes that vendor selection should prioritize technical capability to ensure project success.
Why Other Options Are Incorrect?
* Option A (Warranties): Warranties only cover defects after completion, not risks during execution.
* Option C (Project management approach): A good approach helps, but the contractor's technical skills are the most important risk factor.

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