Free CIPS L4M3 Exam Questions

Become CIPS Certified with updated L4M3 exam questions and correct answers

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Total 289 Questions | Updated On: Mar 05, 2026

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Question 1

Which of the following are most likely to be liabilities of suppliers under a guarantee clause?(SelectAny Two)

A : TWO that apply

B : Repair

C : Decommissioning

D : Upgrading

E : Replacement

F : Installation

Answer: B,E

Question 2

A construction company often subcontracts approximately 50% of the project works because ofunpredictable customer's demand. Although larger corporate customers require quick response to RFQ, thetime lapse between tender bid submission and contract commencement is usually long. Which of thefollowing arrangement would benefit both the contractor and customer?

A : Indemnity agreement

B : Bilateral contract

C : Collateral contract

D : Framework agreement

Answer: D

Question 3

Which of the following are likely to be reasons why a company should develop standard terms and conditionsfor purchases? Select TWO that apply:

A : Unfair standard terms will apply under all circumstances

B : Shorter negotiation

C : Controlling contract-specific risks

D : Reducing administration cost

E : Standard terms are mutually drafted by both parties

Answer: B,D

Question 4

Which of the following is most likely to be an one-off contract?

A : Franchise Agreement

B : Framework Agreement for supply of mono-crystalline silicon

C : Contract for construction of a power plant

D : Commercial lease agreement of an office building

Answer: C

Question 5

The pricing arrangement in which markup is added into cost base to calculate the final price is known as...?

A : Fixed Price approach

B : Market based approach

C : Price indices

D : Cost plus pricing

Answer: D

Page: 1 / 58

Total 289 Questions | Updated On: Mar 05, 2026

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