Free CIPS L6M5 Exam Questions

Giant Construction Company is working on 5 large scale projects. Below are details of each project.

Project 1: Giant is working closely with the client to construct a hospital. The client has provided an estimate of what they think the construction will cost, and any savings will be shared between the parties. This form of contract is popular in the public sector and is being used due to its flexibility.

Project 2: This suite of contracts is known collectively as ‘the rainbow suite’ and is very rigid, not allowing for changes later down the line. The price of the construction was set on the date the contract was signed.

Project 3: This project is for the construction of wind turbines and is an international project. The pricing mechanism accounts for the cost of construction of each individual turbine.

Project 4: This is the most popular form of contract used in the construction industry and uses a Contract Administrator role who is responsible for the timely flow of information to all parties. The scope of the project was not clearly defined at the onset, so Giant is working with the client by sharing their costs incurred plus a small profit margin.

Project 5: This project is for the provision of ICT services and software provision. Giant is paid when certain milestones are met in the implementation of the project.

For each project, select the type of contract and pricing mechanism being used. Complete the table below by listing the type of contract and pricing mechanism being used for each project; CIPS, FIDIC, IMechE, JCT, Joint Venture Contract, NEC, Bill of Quantities, Cost Reimbursable, Cost plus award fee, Fixed Lump Sum, Activity Based Pricing, Target Costing.

Which of the following will you put into box 4?

XYZ is a large construction organisation which is currently running five different projects. Below are details of each project including the type of contract and pricing mechanism used.

Project 1: This project is to build an apartment block and the company has responsibility for designing and constructing the building. Upon completion, ownership will pass to the client. Management have decided the pricing based on past experience of similar projects.

Project 2: The company will provide the facilities management to the building for 6 years following the completion of the construction work. Due to volatility in the industry, the budget is changing continuously over the years.

Project 3: XYZ has been involved in the project since an early stage, but does not hold the design risk for the construction of the building. The budget starts afresh at the beginning of each new accounting period.

Project 4: XYZ is responsible for the design and build of certain aspects of the construction. However, the client has also employed another company for other aspects. The client will take ownership from all companies involved upon completion. XYZ is paid when milestones are completed during the building phase.

Project 5: This is the construction of a new toll bridge which will be operated by XYZ for the first 6 years post construction. Pricing is based on the costs of raw materials and labour and a profit is added on top of this.

Complete the table below by listing the type of contract and pricing mechanism being used for each project; design and operate, design build operate and ownership, public private partnership, full turnkey, partial turnkey, management contracting, bottom up, top down, rolling, fixed fee, zero, activity.

Which of the following will you put into box 10?

Under what circumstances can Specific Performance be used to compensate an innocent party for a contractual breach? Select All that apply

Manchester City Council is looking to construct a new hospital and will be using a EPC style of contract. Which two of the following are the greatest risks to the Council?

What is the purpose of Cybernetic Control within Project Management?