CIPS L3M3 Contract Administration Exam Practice Test

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Total 90 questions
Question 1

After a framework arrangement is in place, a further XXXX competition can be held. Which word replaces XXXX?



Answer : A

A mini-competition may be held to select a supplier, depending on the wording in the framework arrangement documentation and circumstances at the time.


Question 2

Which STEEPLE factor deals with issues of waste management, pollution and recycling?



Answer : B

The answer is 'environmental'.


Question 3

Periodic progress reports may be required by a contract manager. Part of this could include reporting actual progress against planned progress. In many cases, achievement of planned stages would result in (part-) payment(s) being released to the contractor. Which one of the following terms might be the most appropriate title for a plan underpinning this approach, to ensure value for money, and payment linked to actual progress?



Answer : B

Milestone plan.

This is difficult, and if you opted for 'staged', that is understandable. 'Milestone' or 'gateway' are terms often used to describe a situation in which a particular point must be reached on a project, pri-or to release of funds. By this means, a close linkage can be made between outputs achieved and payments made. The idea of stages goes towards this, and 'progress payments' ie payment based on alleged progress or simply time, have been shown in many cases, to be ineffective in achieving value for money.


Question 4

Which one of the following is least likely to be a barrier to free trade?



Answer : C

Trading blocs eg EU, EFTA, ASEAN aim to free up trade within the bloc; the other answers of-fered will negatively affect free trade.


Question 5

Conducting individual and group-based (focus groups) in-depth interviews.

Is this quantitative or qualitative data gathering?



Answer : A

The benefit of in-depth interviews is that one may unearth deeper thoughts, ideas or concerns than through a larger quantitative exercise. Qualitative exercises lend themselves to more freedom to ex-plore interesting issues.


Question 6

Under a XXXX contract, the buyer does commit to purchase a given quantity over a given period of time, but the precise number of orders and their quantities is unknown at the start of the period. What expression has been replaced by XXXX?



Answer : A

The fact that the time period and the total quantity is known means it is a 'call-off' contract. The volumes of product are 'called off' from the contract as required by the buying organisation.

Make sure you understand the difference between a call-off contract and a framework arrangement.

Under a framework arrangement, there is no obligation on the part of the buyer to use the goods / services specified.


Question 7

Which of the following would not normally be part of data required by the buying organisation's contract manager?



Answer : A

Other customer data.

It would, I think, be very unusual for a contract manager to feel it appropriate to ask for information from a supplier representative about other customers. Business partners normally want their dealings to be private. However, in informal discussions, in the normal course of conversation, information is often transferred in a benign manner.


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Total 90 questions