You are reviewing the procurement statement of work for a fixed price road construction contract. You notice that there is a much larger number of bulldozers called out in the contract than have been in use on the project. When questioned about it, the vendor says that the additional bulldozers were added as reserve because the scope of work was not complete when the contract was signed. Who is at fault?

A.  The procurement team

B.  No one

C.  The project manager

D.  The vendor

Answer from Christopher Scordo :

C - The project manager is responsible for defining the full scope of the project before entering any procurement contracts. Failing to fully elaborate the work to be done on the project can cause the seller to factor large reserves into the project. The result is that the project may end up costing more than it otherwise would have. PMI's Code of Ethics requires project managers to follow all project processes and policies, and to accept responsibility for errors and omissions that they have made. [Reference - PMBOK 4th Edition, page 322 & PMI Code of Ethics and Professional Conduct, Page 2] [Prof. Responsibility]

But the question talks about fixed price contract. Where the risk is of the seller. Then how come ".. the project may end up costing more than it otherwise would have." ? And if it is not a cost to the project then why Project Manager is responsible ?