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CIPS L4M3 Exam - Topic 1 Question 75 Discussion

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 prioritised and fully operational at the earliest opportunity. Which of the following pricing arrangements would support this aspiration?
A) Incentivised contract pricing
B) Fixed price economic adjustment pricing
C) Time and materials arrangement pricing
D) Penetration contract pricing

CIPS L4M3 Exam - Topic 1 Question 75 Discussion

Actual exam question for CIPS's L4M3 exam
Question #: 75
Topic #: 1
[All L4M3 Questions]

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 prioritised and fully operational at the earliest opportunity. Which of the following pricing arrangements would support this aspiration?

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Suggested Answer: A

Incentivised pricing is designed to motivate suppliers to meet or exceed performance targets by providing financial or other incentives. In urgent projects, such as constructing a hospital ward during a pandemic, incentivised pricing encourages suppliers to accelerate delivery without compromising on quality. This supports the buyer's need for speed and reliability.


by Earleen at Jun 20, 2026, 09:15 PM

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Dorcas
12 hours ago
I practiced a similar question, and I feel like time and materials arrangement pricing might lead to delays since it doesn't prioritize speed.
upvoted 0 times
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Eden
6 days ago
I'm not entirely sure, but I remember something about fixed price economic adjustment pricing being useful for managing costs in uncertain situations.
upvoted 0 times
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Viola
11 days ago
I think incentivised contract pricing could be beneficial since it encourages the contractor to finish the project quickly.
upvoted 0 times
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