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CIPS L6M5 Exam - Topic 1 Question 25 Discussion

Joanne is preparing a contract for the construction of a large shopping center.The project includes 52 retail units, several restaurants, and a parking facility.Joanne's company has contracted Construct Ltd under a Turnkey project.She is using a Gantt chart as a schedule in the contract.Q: What type of payment mechanism is being used in this contract?Answer Options:
C) Activity Schedule
A) Fixed Lump Sum
B) Bill of Quantity
D) Cost Reimbursable

CIPS L6M5 Exam - Topic 1 Question 25 Discussion

Actual exam question for CIPS's L6M5 exam
Question #: 25
Topic #: 1
[All L6M5 Questions]

Joanne is preparing a contract for the construction of a large shopping center.

The project includes 52 retail units, several restaurants, and a parking facility.

Joanne's company has contracted Construct Ltd under a Turnkey project.

She is using a Gantt chart as a schedule in the contract.

Q: What type of payment mechanism is being used in this contract?

Answer Options:

Show Suggested Answer Hide Answer
Suggested Answer: C

The correct answer is Activity Schedule (p.60). A Gantt chart is a time-based project planning tool, typically used in Activity Schedule contracts, where payments are tied to the completion of specific tasks. Other payment methods, such as Fixed Lump Sum and Bill of Quantity, do not rely on this approach. [P.60]


by Dino at May 29, 2026, 05:39 PM

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Izetta
4 days ago
A) Fixed Lump Sum ensures no surprises in costs.
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Jame
9 days ago
But with a shopping center, A) Fixed Lump Sum is safer.
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Lashandra
14 days ago
I’m leaning towards D) Cost Reimbursable. Could be flexible.
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Isadora
19 days ago
Agreed, A) Fixed Lump Sum makes sense. Clear budget!
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Mickie
25 days ago
I think it's A) Fixed Lump Sum. It fits a turnkey project.
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Skye
30 days ago
Gantt charts are great for scheduling, but they don't dictate payment types!
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Jackie
1 month ago
Wait, are we sure about that? Seems too simple.
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Pura
1 month ago
A Turnkey project usually means a Fixed Lump Sum, right?
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Marge
2 months ago
I think it's more likely a Cost Reimbursable.
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Noble
2 months ago
It's definitely a Fixed Lump Sum contract!
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Blondell
2 months ago
I believe it's definitely not a Bill of Quantity, but I need to double-check if it aligns with the Activity Schedule option.
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Arletta
2 months ago
I'm a bit confused; could it be a Cost Reimbursable? I feel like I read something about that in relation to Turnkey contracts.
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Felix
2 months ago
I remember practicing a similar question, and I think a Turnkey project usually involves a fixed price, so maybe it's A?
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Maryann
2 months ago
I think this might be a Fixed Lump Sum since it's a Turnkey project, but I'm not entirely sure.
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