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CIPS L4M3 Exam - Topic 8 Question 7 Discussion

Carillion Ltd is a major construction contractor in the UK. The company commits to continuous improvement and sets out a performance management program that is integrated across the organisational, individual, and supplier levels. To ensure that the suppliers acknowledge the program, every time negotiating the contract terms with suppliers, the procurement team of Carillion appends a performance management framework to the draft document as a schedule. Is the action of procurement team appropriate?
C) Yes, because the framework should have legal standing as a part of contract
A) No, because the framework will increase the complexity of the contract
B) No, because the performance management should be solely developed by suppliers
D) Yes, because Carillion wants to implement early supplier involvement

CIPS L4M3 Exam - Topic 8 Question 7 Discussion

Actual exam question for CIPS's L4M3 exam
Question #: 7
Topic #: 8
[All L4M3 Questions]

Carillion Ltd is a major construction contractor in the UK. The company commits to continuous improvement and sets out a performance management program that is integrated across the organisational, individual, and supplier levels. To ensure that the suppliers acknowledge the program, every time negotiating the contract terms with suppliers, the procurement team of Carillion appends a performance management framework to the draft document as a schedule. Is the action of procurement team appropriate?

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Suggested Answer: C

Performance management framework often consists of KPIs, targets and consequences that arise from achieved scores. To ensure that the framework has binding effect on contracting parties, it should be developed, appended to the main contract document and agreed by both parties. So the answer should be 'Yes, because the framework should have legal standing as a part of contract'.


LO 1, AC 1.1

by Vincenza at Oct 26, 2022, 04:51 AM

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Hermila
10 months ago
Early involvement is key, so I agree with this approach!
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Antonio
10 months ago
Really? I wonder if suppliers will actually go for this.
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Wilson
10 months ago
Definitely a good move! Legal standing is crucial.
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Skye
11 months ago
I don't think it's fair to impose a framework they didn't create.
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Sommer
11 months ago
Sounds like a solid plan to keep suppliers accountable.
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Ruthann
11 months ago
I recall that legal standing is important, so option C might be the right choice, but I'm a bit confused about the implications for supplier relationships.
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Meghan
11 months ago
I feel like the suppliers should have some input, but if Carillion wants to standardize performance, maybe option D is valid too.
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Phillip
11 months ago
I'm not entirely sure, but I think adding a framework could complicate things, like what we saw in that case study about contract negotiations.
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Teresita
11 months ago
I remember discussing how integrating performance management into contracts can help ensure accountability, so I think option C makes sense.
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Flo
11 months ago
This one seems straightforward - I think the answer is D, the ability to identify states, outputs, intermediate results, and error messages in the SUT.
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Leota
11 months ago
I'm feeling pretty confident about this one. The key is to use the Tenant class from the Cobra SDK and pass in the name 'Cisco' as the argument. I'll go with option C.
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