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CIPS L5M6 Exam - Topic 2 Question 1 Discussion

What is contract leakage?
D) The gap between benefits identified in the pre-award stage of the contract and those actually achieved
A) When spend with a supplier is more than was stated in the contract
B) When spend with a supplier is less than was forecast
C) The gap between proposed KPI levels and those actually achieved by the supplier

CIPS L5M6 Exam - Topic 2 Question 1 Discussion

Actual exam question for CIPS's L5M6 exam
Question #: 1
Topic #: 2
[All L5M6 Questions]

What is contract leakage?

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Suggested Answer: D

Contract leakage refers to the difference between the benefits forecasted before awarding a contract and the actual benefits realised during its execution. For example, savings predicted during tendering may not materialise due to supplier underperformance, scope creep, or poor contract management. This phenomenon highlights the importance of post-contract management and continuous monitoring of supplier performance. Category managers must ensure that expectations set during procurement are followed through by tracking delivery, compliance with terms, and value creation. Tools such as KPIs, SLAs, and audits help minimise leakage by ensuring accountability. Ultimately, failure to address leakage can lead to financial loss, reduced trust, and missed opportunities for improvement. By focusing on contract outcomes as well as initial savings, procurement ensures that strategic objectives are consistently met.


by Corrina at Oct 05, 2025, 04:10 PM

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Kasandra
4 months ago
Yeah, D highlights the real issue in contract management.
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Shawnta
4 months ago
I lean towards D as well. It's about the benefits not realized.
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Jerlene
4 months ago
A could be relevant, but D captures the essence better.
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Eden
5 months ago
But isn't it also about spending discrepancies?
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Franchesca
5 months ago
I agree, C is a strong choice too.
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Lezlie
5 months ago
I feel like it's more about performance gaps.
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Kenda
5 months ago
Definitely! Option D makes sense to me.
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Alex
5 months ago
Totally agree with D, it's all about what you actually get vs. what you expected!
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Judy
6 months ago
Wait, is contract leakage really a thing? Sounds kinda vague.
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Isadora
6 months ago
I thought it was A! Spending more than planned is a big deal.
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Fidelia
6 months ago
I thought contract leakage was more about the difference in expected benefits versus actual outcomes, which would point to option D.
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Sherron
6 months ago
I feel like contract leakage is when the actual spend exceeds what was agreed upon, so maybe it's option A?
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Sheron
6 months ago
I remember discussing something similar in class, but I can't recall if it was about KPI gaps or benefits not being achieved.
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Freeman
6 months ago
I think contract leakage might be related to option D, but I'm not entirely sure. It sounds familiar from our last practice session.
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Ulysses
7 months ago
It's definitely D, right? That's the main issue with contracts.
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Pearlie
7 months ago
Option B? Really? That's like the opposite of leakage. Gotta be A or D.
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Rozella
7 months ago
I think contract leakage is about unmet expectations.
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Sabrina
7 months ago
C seems like a good fit too, but D covers the overall benefits.
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Ruthann
8 months ago
Haha, contract leakage - sounds like a plumbing problem! But seriously, I'd go with Option A.
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Tijuana
8 months ago
Option C makes the most sense to me. Contract leakage is about the KPI shortfall between proposal and reality.
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Yvonne
8 months ago
I think Option D is the right answer. Contract leakage is about the gap between expected and actual benefits.
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Huey
8 months ago
Option A is correct. Contract leakage is when the actual spend with a supplier exceeds the contracted amount.
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Stefania
9 months ago
I'm a bit unsure on this one. I know contract leakage has to do with the contract not being fulfilled as expected, but I'm not sure which option best captures that. I might have to guess on this one.
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Lashawn
9 months ago
Easy peasy! Contract leakage is all about the difference between what was forecast and what actually happened. Option B is the clear answer here.
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Jessenia
9 months ago
Okay, I've got this. Contract leakage is when the actual spend with the supplier is different than what was stated in the contract. So I'm going with option A.
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Lisha
9 months ago
Hmm, this is a tricky one. I'm not totally sure what "contract leakage" means. Is it about the supplier not meeting the terms of the contract? I'm leaning towards option C, but I'm a bit confused.
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Mammie
9 months ago
I think this is asking about the difference between what was expected in the contract and what actually happened. I'd go with option D - the gap between the benefits identified before the contract and what was actually achieved.
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Aleta
3 months ago
Definitely D! It captures the essence of contract leakage.
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Wendell
3 months ago
I thought option A was interesting too, but D feels right.
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Veronica
3 months ago
I agree, option D makes the most sense.
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Merissa
8 months ago
Yeah, it’s all about the expectations vs. reality.
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