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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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Cammy
14 days ago
Time and materials arrangement could lead to delays. Not ideal for urgent needs.
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Thad
19 days ago
I disagree. Fixed price economic adjustment pricing ensures budget control.
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Verdell
25 days ago
I think incentivised contract pricing is the best option. It motivates quick completion.
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Mari
30 days ago
Penetration pricing is usually for products, not construction projects.
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Jamal
1 month ago
Not sure if time and materials would actually get it done fast enough.
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Sherly
1 month ago
Really? I thought incentivised contracts were better for speed.
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Nobuko
2 months ago
Totally agree, fixed price seems the safest bet here!
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Robt
2 months ago
A fixed price economic adjustment could help manage costs effectively.
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Elza
2 months ago
Penetration contract pricing sounds familiar, but I can't recall how it would apply to a hospital project like this.
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Dorcas
2 months 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.
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Eden
2 months ago
I'm not entirely sure, but I remember something about fixed price economic adjustment pricing being useful for managing costs in uncertain situations.
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Viola
2 months 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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