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CIPS L6M5 Exam Syllabus Topics:
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L6M5 Questions and Answers: Strategic Programme Leadership & L6M5 Practice Test
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CIPS Strategic Programme Leadership Sample Questions (Q62-Q67):
NEW QUESTION # 62
In a fixed lump sum contract, this pricing mechanism does not allow for any changes in price. Is this statement TRUE?
Fixed lump sum contracts are widely used in construction and infrastructure projects.
Answer Options:
- A. No - price variations are permitted if they are written into the contract
- B. Yes - the price is fixed before the contract is signed
- C. Yes - the contractor assumes all risks should they exceed the budget
- D. No - price changes are allowed as it is impossible to predict prices concretely in advance
Answer: A
Explanation:
Fixed Lump Sum contracts allow limited price changes under specific conditions (p.55), such as client variation requests, force majeure, or inflation adjustments. Firm Fixed Price contracts, however, do not allow any changes. [P.55]
NEW QUESTION # 63
Liability limitation often focuses on which of the following types of loss, which is said to be the most unpredictable and most significant in the case of a default on a contract?
- A. direct
- B. anticipatory
- C. consequential
- D. repudiatory
Answer: C
Explanation:
Consequential loss is considered the most unpredictable and significant, hence it is often the focus of liability limitations.
NEW QUESTION # 64
Cactus Construction is the Principal Contractor on a housing estate project under an NEC contract. Which of the following scenarios would be a mandatory variation?
- A. the project falls behind the plan due to staff shortages
- B. changes to building regulations
- C. raw material prices increase
- D. the client changes their opinion on the design
Answer: B
Explanation:
Changes to building regulations are mandatory because they are legally binding and require compliance.
NEW QUESTION # 65
Spaceman Ltd's R&D team has a strong relationship with its supplier of spaceship parts.
The space exploration industry is becoming highly competitive.
The team is looking for ways to enhance profits and market share.
Q: What strategy should Spaceman Ltd use?
Answer Options:
- A. Consortium-Based Procurement
- B. Variance Analysis
- C. Open-Book Costing
- D. Value Engineering
Answer: D
Explanation:
Value Engineering (p.100) is used to optimize costs and improve profitability in competitive industries. It leverages supplier relationships to cut costs and increase value. Variance Analysis (A) is for budgeting, and Consortium Procurement (C) relates to bulk purchasing, which is not the issue here. [P.100]
NEW QUESTION # 66
Which of the following characteristics form part of the Iron Triangle?
- A. contractor
- B. time
- C. place
- D. cost
- E. scope
Answer: B,D,E
Explanation:
The Iron Triangle consists of scope, cost, and time.
NEW QUESTION # 67
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