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Task 8: Negotiate project agreementsPeopleNegotiationProcurement

PMP · Question 8 · Task 8: Negotiate project agreements

A project manager is negotiating a service level agreement (SLA) with a vendor. The vendor insists on a 48-hour response time, but the project stakeholders require a 24-hour response time to minimize downtime risks. Negotiations have stalled. What is the BEST strategy?

Answer options:

A.

Accept the 48-hour term to sign the contract and manage the risk internally.

B.

Demand the 24-hour term or threaten to cancel the contract negotiation.

C.

Explore the vendor's constraints and propose a tiered support model with higher costs for critical incidents.

D.

Split the difference and agree on a 36-hour response time.

How to approach this question

Look for the 'Win-Win' or integrative negotiation approach.

Full Answer

C.Explore the vendor's constraints and propose a tiered support model with higher costs for critical incidents.✓ Correct
C
Understanding the underlying interests (vendor's cost/staffing vs. project's risk) allows for a solution like tiered support that satisfies both.

Common mistakes

Choosing compromise (D) or hardball (B) instead of collaboration.

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