CIPS Commercial Contracting - L4M3 Exam Questions

QUESTION NO: 1
Which of the following would be suitable key performance indicators (KPIs) for supplier performance?
Ensure you have customer loyalty
Value or percentage of cost reductions obtained
Win an award in the next 12 months
Percentage of on-time in full deliveries

QUESTION NO: 2
When should liquidated damages clauses be written into a contract?

QUESTION NO: 3
Maximum Score 1
Denny is putting together the final version of a contract to send out to a supplier. He places certain documentation into additional contract schedules at the end of the main contract.
Which of the following would be suitable inclusions to the additional schedules? Select TWO that apply.

QUESTION NO: 4
The cost in cost reimbursable contract is...?

QUESTION NO: 5
Maximum Score 1
Which of the following would you expect to see in an Invitation to Tender (ITT)?

QUESTION NO: 6
EAC Facilities Management is planning for a new construction project in the suburban area. They decide to use NEC or FIDIC model form of contract for this project. Is this a right course of action?

QUESTION NO: 7
Which of the following are the 'fundamental' labour standards laid down by the International Labour Organisation?
1. Elimination of child labour
2. Payment of a minimum wage
3. The right to collective bargaining
4. Abolition of forced labor

QUESTION NO: 8
Maximum Score 1
John is a new procurement manager who has recently joined Smiths Facilities Management Ltd. The company provides maintenance services through the utilisation of subcontractors. It is experiencing a number of issues with its supply chain which has resulted in customer complaints, and John would like to introduce service level agreements (SLAs) to some of its key providers. Which of the following should be included?
* How often the service will be provided
* The procedures to be followed to resolve disputes
* The qualifications needed by staff providing the service
* The stock maintained by the subcontractor

QUESTION NO: 9
Express terms in a contract are stated in which of the following? Select TWO that apply