HKSM
Seller
An external party that provides goods, performs services, or delivers specific outputs to a buying organization.
Key Points
- Typically a vendor, contractor, or consultant engaged by a buyer organization.
- Works under a procurement agreement that defines scope, schedule, cost, and quality expectations.
- Selected through methods such as bids, proposals, or direct negotiation.
- Accountable for meeting contract requirements and managing risks assigned to the seller.
Example
A company hires a software firm to build a reporting module under a fixed-price contract. The software firm is the seller responsible for delivering the module that meets the agreed specifications and deadline.
PMP Example Question
Which term best describes an external company that delivers contracted project outputs to your organization?
- Seller
- Buyer
- Sponsor
- Project team
Correct Answer: A — Seller
Explanation: A seller is an external provider that supplies goods, services, or deliverables to the buying organization under a contract.
