International Project Management Association (IPMA) Practice Exam

Which statement regarding change control is correct?

1. Fixed-price contracts require no change control

2. Cost-reimbursable contracts minimize change control processes

3. A fixed-price contract should include change procedures

4. Change control is not needed in project management

The correct answer is: A fixed-price contract should include change procedures

A fixed-price contract should include change procedures because it establishes a clear framework for managing any changes that may need to be made during the project execution. In fixed-price contracts, the price is agreed upon at the outset, which means that any changes can have significant implications for both the project scope and the project's overall budget. By including clearly defined change procedures, stakeholders can ensure that any necessary adjustments are handled systematically and with mutual agreement, helping to manage risks and prevent disputes. In contrast to this statement, fixed-price contracts can indeed necessitate change control processes because changes can affect the initial agreement, making it essential to have a formal process. While cost-reimbursable contracts may offer some flexibility with fewer strictures on changes, it doesn’t necessarily mean they minimize the need for change control; instead, they often require clear documentation of changes due to their inherently variable nature. Lastly, change control is a fundamental aspect of effective project management and cannot be deemed unnecessary; it helps ensure projects proceed smoothly while managing the expectations and requirements of all stakeholders involved.