Procurement Without the Pain (Part 1 of 2): Why Contract Types Confuse PMP Students

If you need help simplifying PMP concepts in a way that really makes sense, reach out and I’ll teach you and create a plan that works for you: 757-759-5282.

This episode kicks off a two-part deep dive into procurement, inspired by a listener who texted me after struggling with procurement questions on a mock exam.

In Part 1, we cover:

• Why procurement feels so confusing on the PMP exam

• The three contract families — Fixed Price, Cost-Plus, and Time & Materials

• Who benefits and why under each type (buyer, seller, or both)

• A direct comparison of Cost-Plus vs. T&M (Receipts vs. Rate Card)

• A quick-fire exercise with real (and funny) scenarios to lock it in

I wrap Part 1 by teeing up what’s next, because procurement isn’t just about contracts — it’s about process.

In Part 2, we’ll break down:

• Why the exam loves “use the organizational procurement process”

• The make-or-buy decision, sourcing plans, RFX, evaluation criteria, and MSA (explained in plain English)

• Multi-tiered contract structures and why PMI loves them

• The most common exam traps and how to avoid them

📌 Key takeaway from Part 1: Contracts are just risk-placement tools. Know who’s holding the hot potato, and you’ll know who benefits.

Stay tuned for Part 2, where we’ll finish the journey and connect it back to how PMI wants you to think on exam day.

👉 Want Scott to build you a study plan, review your weak spots, or coach you all the way to PMP success? Call or text 757-759-5282.