Project and Contract Management — 2024

KNEC Diploma in Supply Chain Management, Module III. Original examination questions with explained answers for revision. Answers are independently prepared for study and are not an official KNEC marking scheme.

November 2024

Paper codes: 2903/306; 3306
Time: 3 hours
Instructions: Answer any FIVE questions. All questions carry equal marks. Answer the questions in English.

Question 1(a) — 10 marks

A certain organisation has adopted the agile project model in its operations. Explain five advantages of this model.

Answer

  1. Short iterations allow usable outputs and feedback earlier in the project.
  2. Changing requirements can be considered at regular review points.
  3. Frequent stakeholder involvement improves alignment with user priorities.
  4. Small work increments make problems visible before they spread across the whole project.
  5. Regular team reflection supports continual improvement in delivery methods.

Question 1(b) — 10 marks

Outline five factors that a project team may consider when determining a project to undertake in an organisation.

Answer

  1. Project objectives, scope and required outputs define what the plan must deliver.
  2. Available finance, people, equipment and materials limit feasible methods and scale.
  3. Required completion dates and activity dependencies determine the schedule.
  4. Technical, legal, environmental and stakeholder requirements constrain execution.
  5. Risks, assumptions and contingency needs determine the resilience of the proposed plan.

Question 2(a) — 10 marks

There are certain factors that may slow down the pace of implementing a project in an organisation. Outline five such factors.

Answer

  1. Insufficient or late finance interrupts procurement and payment for work.
  2. Poor scope definition and repeated changes cause redesign and rework.
  3. Shortages of competent staff, materials or equipment delay planned activities.
  4. Weak coordination, decisions and communication leave interdependent tasks waiting.
  5. Unforeseen technical problems, approvals or external disruptions prevent the planned sequence being followed.

Question 2(b) — 10 marks

Some organisations prefer the tendering method in their project procurement process. Explain five reasons that may account for this preference.

Answer

  1. Competition encourages qualified contractors to offer attractive prices and service.
  2. Common tender documents provide a consistent basis for comparing offers.
  3. Published criteria improve transparency and accountability in selection.
  4. Formal submissions provide evidence of contractors’ capability and proposed methods.
  5. A documented process supports value-for-money review and compliance with applicable procurement requirements.

Question 3(a) — 10 marks

One of the duties of a project procurement officer is to monitor the performance of engaged project contractors. Explain five aspects that the officer should cover when undertaking these duties.

Answer

  1. Time: compare completed activities and milestones with the approved schedule.
  2. Cost: compare verified expenditure and commitments with the budget.
  3. Quality: test work and materials against specifications and acceptance criteria.
  4. Scope: verify that the required outputs and approved changes are delivered.
  5. Compliance and stakeholder results: review safety, contractual obligations, risks and user acceptance.

Question 3(b) — 10 marks

Outline five technical skills that a project manager should possess in order to effectively manage project works in an organization.

Answer

  1. Work-breakdown and scheduling skills help organise activities and dependencies.
  2. Cost-estimation and budgeting skills support realistic funding and expenditure control.
  3. Relevant engineering or technical understanding helps assess methods, specifications and work quality.
  4. Risk-analysis and problem-solving skills support early treatment of delivery threats.
  5. Contract, procurement and project-information-system skills support administration and reliable progress reporting.

Question 4(a) — 10 marks

Explain five indicators of a viable project that may be apparent at the feasibility study stage.

Answer

  1. Market or user demand indicates whether the proposed output meets a real need.
  2. Technical feasibility shows that suitable methods, skills and technology can deliver the output.
  3. Financial and economic appraisal compares expected benefits with investment and operating costs.
  4. Legal, environmental and social assessment identifies approvals, impacts and stakeholder acceptance.
  5. Resource, schedule and risk assessment tests whether the project can be implemented and sustained realistically.

Question 4(b) — 10 marks

Some organisations have adopted artificial intelligence tools in monitoring project implementation process. Explain five benefits that may accrue to the organisations from adopting such tools.

Answer

  1. Automated analysis can process large volumes of progress data faster.
  2. Pattern detection can give earlier warnings of likely cost or schedule overruns.
  3. Image or sensor analysis can help identify deviations requiring human inspection.
  4. Resource and schedule analysis can help compare corrective options.
  5. Automated summaries can reduce routine reporting effort, provided data quality and human verification are maintained.

Question 5(a) — 10 marks

A certain organization is in the process of selecting a potential bidder to be awarded a contract in one of its projects. Outline five requirements that such a bidder should fulfil in order to be awarded the contract.

Answer

  1. Meet the stated legal eligibility and procurement qualification requirements.
  2. Submit a responsive offer meeting the required specifications and tender conditions.
  3. Demonstrate relevant experience, competent personnel and suitable equipment.
  4. Demonstrate financial capacity to sustain the proposed work and obligations.
  5. Provide an acceptable price, delivery programme and required securities according to the published evaluation criteria.

Question 5(b) — 10 marks

Outline five roles of an accounting officer in the project tendering process in an organisation.

Answer

  1. Ensure procurement is supported by approved plans and available funding.
  2. Establish authorised procurement responsibilities and oversight arrangements.
  3. Ensure the process follows applicable rules, published criteria and ethical requirements.
  4. Make or authorise decisions and contract execution within the officer’s lawful mandate.
  5. Ensure proper records, contract monitoring and accountability for the use of organisational funds.

Question 6(a) — 10 marks

A contractor engaged to undertake a project has requested for a review of the terms of the contract after performing a substantial portion. Explain five reasons that may justify the request.

Answer

  1. An authorised change in scope or design may require revised price or time provisions.
  2. Unforeseen physical conditions may materially affect the agreed work method.
  3. Exceptional input-cost changes may trigger an agreed contractual adjustment mechanism.
  4. Client-caused delay or late access may justify an extension under the contract.
  5. Changes in law or other qualifying events may alter performance obligations, subject to evidence, notice and the contract’s review provisions.

Question 6(b) — 10 marks

Explain five factors that an organisation may consider when appointing members of a project team.

Answer

  1. Relevant technical competence matches members to the project’s tasks.
  2. Experience with similar work improves practical judgement and problem-solving.
  3. Availability and workload determine whether members can meet the required commitment.
  4. Communication, cooperation and complementary skills support effective teamwork.
  5. Integrity, reliability and clear role representation support accountable project decisions.

Question 7(a) — 10 marks

The management of a certain organization has decided to suspend the implementation of one of its projects. Outline five reasons that may account for this decision.

Answer

  1. Funding may be unavailable or the expected benefits may no longer justify continuing.
  2. Serious safety, environmental or legal concerns may require work to stop.
  3. Material design or technical defects may need investigation and correction.
  4. Essential approvals, materials or site access may be unavailable.
  5. Major changes in organisational priorities, demand or external conditions may require reassessment.

Question 7(b) — 10 marks

Describe five features of the quotation method as used in project procurement.

Answer

  1. The requirement is normally sufficiently clear and standard for suppliers to quote comparable terms.
  2. Written quotations are requested from an appropriate number of qualified suppliers under the applicable procedure.
  3. Quotations state price, specifications, delivery and other relevant commercial terms.
  4. Offers are evaluated against the same stated requirement and award criteria.
  5. The process is relatively simple and documented, and is used only within the organisation’s applicable conditions and approval limits.
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