[Q59-Q78] Updated L4M3 Dumps PDF – L4M3 Real Valid Brain Dumps With 161 Questions!

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Updated L4M3 Dumps PDF – L4M3 Real Valid Brain Dumps With 161 Questions!

100% Free L4M3 Exam Dumps Use Real CIPS Certifications Dumps

NO.59 A large company supplies a lot of products. Their shipments are often delayed and customers are not satisfied. Which of the following KPIs is most likely to be applied to this situation?

Technical support

OTIF delivery

Delay damages

Consignment stock availability

NO.60 Which of the following are always considered as minimum preconditions for a contract? Select TWO that apply:

Specification

Promise

Omission

Consideration

Intention to be bound

NO.61 In a sale contract, a clause requires the seller to “defend, reimburse, and hold harmless” the buyer and its personnel from and against any and all damages arising in connection with some specific circumstances. This clause is an example of…?

Insurance

Liquidated damages

Indemnity

Force Majeure

NO.62 Which of the following will be included in a conformance specification?
1. Brand names
2. Description of the operating environments
3. Chemical formulae
4. Required safety level

1 and 2 only

1 and 3 only

1 and 4 only

2 and 3 only

NO.63 Rochdale Ltd is looking for a new IT system to automate some of its operations. In designing the specification, procurement manager supposes that it should be done solely by the IT department who have deep expertise on this matter. Is procurement manager’s opinion appropriate?

No, because challenging the user’s demand is the role of procurement

Yes, because designing complex specification would waste procurement manager’s time

Yes, because procurement professional has no expertise in IT sector

No, because designing complex specification could only be outsourced

NO.64 Which of the following are likely to be advantages of using invitation to tender? Select TWO that apply:
Short turnaround times

Quick implementation

Driving forward planning culture

Lower administration costs

Reducing risks of bribery and corruption

Advantages of using invitation to tender may be as below:
No Nepotism: Tenders or bids are evaluated on the basis of certain predetermined criteria, such as price, quality and value for money. In other words, the firm offering the highest quality product or service at the lowest price point would win the contract. As most tender documents are opened and evaluated in a public process, I think that there remains little room for nepotism or favoritism of any kind.
Value for Money: From the perspective of the client, tenders offer the greatest value for the amount of money spent. This is due to the fact that the client can choose from a wide pool of potential suppliers to select the ones that can produce the highest quality product or service at the lowest price point. This allows the company, establishment or organization to save money without having to compromise on quality. Therefore, despite being quite time consuming, tendering is, in my opinion, a profitable long-term process from an organization’s point of view.
Encourages Competition: The process of tendering helps promote a competitive market. This is because a number of potential contractors, firms or suppliers get a chance to bid for every project. And because selection depends on quality and price, every bidder tries to reduce operational inefficiencies and redundancies as much as possible in order to lower expenses and improve quality. This entire process encourages healthy competition in the market and prevents complacency and laziness, which in turn provides a boost to innovation and new ideas.
Easier Entry: The system of tendering makes it easier and simpler for new firms to enter the market or even a particular industry. This is due to the fact that contracts under this system are awarded on the basis of predetermined, objective criteria. As a result, even a firm that is a new entrant to the market, having no connections or contacts in the industry, can win a prestigious and lucrative contract by providing the highest value for the client’s money. This process therefore helps new firms to quickly get a foothold in the market or industry, thus significantly lowering the traditional barriers to entry.
Reference:
– Characteristics and Benefits of the Tendering Process
– CIPS study guide page 6-8
LO 1, AC 1.1

NO.65 A fashion company is drafting a specification for an order in next year. The company wants to expand its supply base in low cost countries. The procurement department is considering applying standard ISO 3759 on method for the preparation, marking and measuring of textile fabrics, garments and fabric assemblies for use in tests for assessing dimensional change after a specified treatment. Which of the following should be taken into account when embedding this standard into the specification?

Date of publication

Supplier selection

Type of specification

Legality

NO.66 CMS Corp goes into a gainshare agreement with the contractor, EIP Ltd. Both parties agree that the final fee will be calculated on target cost – target fee basis. Which of the following will affect the final fee payable in this gainshare agreement? Select TWO that apply:

Accrual expense

Final price

Purchaser goodwill

Supplier share

Actual cost

NO.67 Express terms in a contract are stated in which of the following? Select TWO that apply

Orality

Idea

Trade customs

Writing form

Statutes

NO.68 Which of the following statement is true about one-off contract?

Suppliers have many opportunities to improve the quality during the performance of one-off contract

One-off contracts can be used for services and works

Ad-hoc purchase is not a type of one-off purchase

One-off contracts only apply to low-value, low-risk purchase

NO.69 To expand its operation, Steel Co. decides to build a new plant. Despite of excitement, the senior management is very concerned about the complexity and risks of such project. Hugo, the procurement manager, suggests that the company can adopt a model form of contract. What is the advantage of using model form of contract?

It shifts the balance of power in the favour of the buyer rather than the contractor

The company could avoid the need to draft a complex contract from blank

Model form of contract eliminates the need for legal advice totally

The company does not need to draft the drawings as well as specification anymore

NO.70 Which of the following contracts would be best suited to a ‘variable pricing’ arrangement?

A contract for window cleaning during the next three months

A contract for road building estimated to take five years to complete

A contract for the supply of 100 printing machines to be delivered next month

A contract for the supply of lubricating oil for immediate delivery

NO.71 Under a framework agreement, which of the following are supplier selection mechanisms? Select TWO that apply:

Rescission of contract

Mini competition

Contract for lease

Direct call-off

Call off contract

A framework agreement is an agreement with one or more suppliers/providers which sets out terms and conditions under which individual contracts (call-offs) can be made throughout the term of the agreement.
A framework agreement itself is not a contract, but the call-offs made from it are.
Framework arrangements create a streamlined and flexible process for procuring goods, works or services Where a framework for the same goods, works or services is awarded to several suppliers, there are three possible options for awarding call-off contracts: direct award (or direct call-off), mini-competition or a combination of both.
Option 1 – Apply the terms of the framework agreement (direct award).
Where your requirements match the terms and/or specification of the framework agreement (in the event of any query, you should clarify the situation with the organisation that established the framework), a particular call-off should be awarded without re-opening competition. The call-off should be awarded to the provider who is identified as the most economically advantageous tender based on the award criteria used at the time that the framework was established (i.e. the supplier ranked no. 1). Randomly selecting a supplier off a framework is not permitted.
Option 2 – Hold a mini-competition between capable suppliers.
If your requirements do not match the terms and/or the specification of the framework, you should conduct a mini-competition exercise. Whilst it is not permitted to substantially change the basic terms or specification of the framework, in running a mini-competition it is possible to supplement or refine the basic terms of the framework prior to making a call-off. Examples of such terms are:
– The particular goods/services/works required;
– Particular delivery timescales;
– Particular invoicing arrangements and payment profiles;
– Associated services such as installation, maintenance and training;
– Quantity;
– Functional specification.
Under no circumstances should brand names or brand-specific descriptions of goods be used e.g. BIC Biro Pen, Hewlett-Packard Printer, Dell computer. Descriptions should give reference to the characteristics and outputs of the product or service. Where no other description is possible, any reference should be qualified by adding the words ‘or equivalent’.
When a mini-competition exercise is held, all suppliers appointed to the framework that are capable of meeting the requirement must be invited to submit a tender. (This might just relate to suppliers within a particular ‘lot’). You must not limit the mini-competition exercise to selected providers. A time limit for submitting the tender must be set and advised to competing suppliers. This time limit must be reasonable, taking account of the complexity of the requirement.
The call-off must be awarded on the basis of the framework award criteria and new criteria cannot be added, although, where permitted, the weightings may be varied to take account of a particular requirement. However, in adjusting the weightings, care must be taken to ensure that any such changes do not have an adverse effect on competition.
Option 3 – Combination of direct award and mini-competition
To use a combination approach, the procurement documents must state that this route may be used. The procurement documents will also specify which terms may be subject to the re-opening of competition.
Reference:
– Guidance on the Use of Framework Agreements
– CIPS study guide page 60-62
LO 1, AC 1.3

NO.72 Which of the following is used to detail the complex matter that may be verbiage to the main document?

Contract variation

Schedule

Subcontracting

Standard terms and conditions

NO.73 A construction company is undertaking a housing development project. They need lots of bricks and other building materials, but the construction site doesn’t have large area for storage of materials. Therefore, the company’s suppliers must deliver the building materials with fixed quantity and at fixed time intervals. What type of contract is used between the construction company and its suppliers?

Framework agreement

Spot transaction

One off contract

Call off contract

NO.74 Which of the following are commonly used as model forms of contracts in construction in the UK?

Select TWO that apply

JCT

NEC

CIPS

IET

NO.75 Is the government only source of industrial standards within a country?

No, the government can only adopt standards regarding security and defence

Yes, while ISO make standards for international trade, the government standardises other facets of their country

No, an organisation can also generate its own internal standards

Yes, the standards must be made by legislative branch of the country

NO.76 The cost in cost reimbursable contract is…?

Actual cost

Variable cost

Fixed cost

Profit

NO.77 Which of the following will be always automatically deemed as a consideration?

Promise to perform over and above an existing obligation

Promise given to a third party

Implied consideration

Past consideration

NO.78 A company is considering entering a new market. Which of the following are the external factors that influence the difference between cost and price of this company? Select THREE that apply

Procurement policy

Process efficiency

Business strategy

Threat of substitution

Competitiveness of the market

Relative bargaining power of supplier and purchaser