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?

What is the purpose of Cybernetic Control within Project Management?

Golden Rainbow Ltd has invested £4m in a new research project which was started three years ago. The CFO has calculated that the average rate of return on the project is -6%. Is this possible?

Dave is the Head of Human Resources at a large company. The company has decided to introduce a new process known as the Person-Organisation Fit. What will this help achieve?

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