Which project document secures the services of and defines compensation for external resources?

• A. Memorandum of Understanding (MOU)
• B. Deliverable
• C. Contract
• D. Project Charter

Answer: (C)

Securing external resources and defining how they will be paid is handled by a contract. This document formalizes the relationship with vendors or consultants, detailing what work will be done, by whom, and the terms of payment, including compensation. A memorandum of understanding is typically a non-binding agreement of intent, not enforceable procurement terms. A deliverable is the output produced by the project, not the arrangement to hire people. A project charter authorizes the project and outlines high-level objectives, but it does not specify contracts or compensation for external resources. Therefore, the contract is the instrument that ensures external services are obtained under defined terms and payment.