CIPS L6M5 Exam - Topic 3 Question 21 Discussion

Actual exam question for CIPS's L6M5 exam

Question #: 21
Topic #: 3

[All L6M5 Questions]

Joey is preparing an NEC contract for the construction of a new school.

He includes a lump-sum price of 5 million.

The contractor receives payment upon completion of specific milestones.

Q: In which section of the contract should this be detailed?

Answer Options:

AOption A

BZ Clause

CW1 Option

DX Clause

Show Suggested Answer

Suggested Answer: A

In NEC contracts, pricing mechanisms are detailed in Options A-F (p.36). W clauses handle dispute resolution, X clauses cover secondary options, and Z clauses are additional conditions. [P.36]

by Virgina at Apr 01, 2026, 09:46 PM

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Janessa

18 days ago

Totally agree, W1 is the way to go!

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Tomoko

23 days ago

It should be in the W1 Option for milestone payments.

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Rosann

1 month ago

I feel like Option A could be relevant too, but I definitely need to double-check the specifics of each option.

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Karma

2 months ago

The Z Clause sounds familiar for custom amendments, but I can't recall if it specifically addresses payment milestones.

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Cecil

2 months ago

I remember something about milestones being covered in the W1 Option, but I could be mixing it up with another contract type.

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Mohammad

2 months ago

I think the payment details might be in the X Clause, but I'm not entirely sure.

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