CIPS L4M5 Exam - Topic 7 Question 41 Discussion

Actual exam question for CIPS's L4M5 exam

Question #: 41
Topic #: 7

Citywide Developments Ltd (CDL) is a construction programme management company that delivers the design and build of high-value property development schemes. CDL uses third-party consultant design services, using named consultants in the contract. CDL has recently observed increases in the consultancy day rate for these consultants. Which of the following tradeable concessions could CDL offer when negotiating with the suppliers of design services, in order to achieve lower rates of pay, but without lowering the quality of service?

AAccept unqualified trainee consultants

BOffer a shorter consultant working day

CReduce the volume-based rate discounts

DRemove the requirement for the named personnel

Show Suggested Answer

Suggested Answer: C, E

There are many macro economic factors that could influence procurement in general and commercial negotiation in particular. Below are six factors that are agreed to be fairly significant:

* Economy growth rate

* Inflation rates

* Interest rates

* Currency exchange rate

* Unemployment rate

* Protectionism

LO 2, AC 2.2

by Dorothy at Apr 25, 2023, 04:48 AM

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Christene

7 months ago

Reducing discounts (option C) seems counterproductive, why would they agree to that?

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Dorcas

7 months ago

Shorter working days (option B) could work, but will it really save money?

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Thurman

7 months ago

Not sure about option A, unqualified trainees might compromise quality.

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Zona

7 months ago

Agree with John, named personnel can be a big expense!

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Raul

7 months ago

I think option D makes sense, flexibility could help lower costs.

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Pamella

8 months ago

Accepting unqualified trainee consultants seems risky to me; I doubt that would maintain the quality we expect from our design services.

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Launa

8 months ago

I practiced a similar question about tradeable concessions, and I feel like reducing volume-based rate discounts might not be the best choice since it could affect overall costs.

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Christiane

8 months ago

I think removing the requirement for named personnel might help negotiate lower rates, but it could also risk the quality of service we need.

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Rima

8 months ago

I remember discussing how offering a shorter working day could potentially lower costs without compromising quality, but I'm not sure if that's the best option here.

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Brock

8 months ago

I'm a little confused by this question. I don't have much experience with the IBM Content Search Services server, so I'm not sure which tool would be used to change the port. I'll have to guess on this one.

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Jesusita

8 months ago

Ah, I see. This is testing my knowledge of MPLS backup paths and label distribution. I'll need to apply that here.

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Fidelia

8 months ago

Hmm, I'm not totally sure about this one. I know there are different types of customer surveys, but I'm having trouble remembering the specific differences between them. I'll have to think this through carefully.

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Amie

8 months ago

Hmm, I'm not totally sure about this one. I know VLANs are used for network segmentation, but I'm not certain if business types are the main factor in how they're planned. I'll have to think this through.

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Leah

8 months ago

I'm a little confused by the terminology used in this question. What exactly is a "service-oriented analysis process"? I'll need to review my notes and make sure I understand the concept before answering.

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Colby

1 year ago

I don't know, but if I were CDL, I'd be offering the consultants a free trip to the Caribbean. That's the kind of 'tradeable concession' I'd be looking for!

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