L4M3

Review 60 L4M3 practice questions with answer explanations and community insights.

Question 1

As a result of a global pandemic, a local hospital is facing significant patient capacity pressures and would like the construction of a new 50-bed ward to be prioritized and fully operational at the earliest opportunity. Which of the following pricing arrangements would support this aspiration?

  1. Penetration contract pricing
  2. Fixed price economic adjustment pricing
  3. Incentivised contract pricing
  4. Time and materials arrangement pricing

Question 2

Which of the following would be considered as advantages of an industry model form contract? 1. It provides greater flexibility for negotiation 2. It reduces the cost of contract development 3. It is usually designed to be fair to both parties 4. It removes the need for the buyer to understand it

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 2 and 4 only

Question 3

Which of the following would be suitable general key performance indicators (KPIs) for monitoring of supplier performance? (Choose three.)

  1. Delivery on time
  2. Financial reports
  3. Quality performance
  4. Cost management
  5. Length of contract
  6. Defining requirements

Question 4

A fixed pricing arrangement may be beneficial to use in which of the following circumstances? 1. Where the accuracy and reliability of the project scope information is known 2. Where the supplier undertaking the project is inexperienced in the activity 3. Where the estimates for the labour, material and associated costs are known 4. Where the contractor will be able to obtain incentives or early completion

  1. 1 and 3 only
  2. 2 and 3 only
  3. 1 and 4 only
  4. 3 and 4 only

Question 5

Which of the following approaches could a purchasing organization use to reduce the level of detail in a specification, without increasing the risk of an unsuccessful procurement process? 1. Increase the use of acronyms and abbreviations 2. Cross-refer to recognized industry standards 3. Require tendering suppliers to propose specifications 4. Provide samples to demonstrate the requirements

  1. 1 and 4 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 2 and 4 only
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