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Download CIPS Commercial Contracting Exam Dumps
NEW QUESTION 47
Consequences and actions that arise from certain KPI scores must be...? Select TWO that apply.
- A. Mutually agreed
- B. Deliberately omitted
- C. Terminated
- D. Documented
- E. Unilaterally imposed by the purchaser
Answer: A,D
Explanation:
Supplier performance management and monitoring is a fundamental part of contract management. It starts with setting KPIs, targets and consequences or actions that arise from KPI scores. The measures, objectives and targets used in the monitoring of the supplier's performance must reflect those that were agreed when the contract was let. That is why it is important to specify a commitment to continuous improvement at the outset. It would be unfair to the supplier to suddenly introduce a range of measures after the contract had begun - however if such an introduction mid-term through the contract is unavoidable then it should be negotiated and agreed in a professional manner and not merely imposed on the supplier.
In conclusion, the details of how KPIs will be monitored and the actions or consequences resulting from scores achieved must be documented and agreed between the parties. This details may be embedded in the specification or the main body of the contract or it may be set out in a SLA.
Reference:
- Performance Monitoring of Suppliers - CIPS Knowledge summary
- CIPS study guide page 101-109
LO 2, AC 2.2
NEW QUESTION 48
Which of the following should be applied when measuring frequency of on-time deliveries during a contract period?
- A. Subjective measure
- B. Numerical measure
- C. Binary measure
- D. Qualitative assessment
Answer: B
Explanation:
Number of on-time deliveries can be quantified, then numerical measures can be applied.
Frequency of on-time deliveries is measured as on-time deliveries as a percentage of total no. of deliveries for period.
LO 2, AC 2.2
NEW QUESTION 49
Which of the following are implied terms in sales contracts? Select THREE that apply.
- A. Payment method
- B. Customer satisfaction
- C. Transfer of ownership
- D. Fitness for purpose
- E. Mode of transportation
- F. Risk transfer
Answer: C,D,F
Explanation:
Generally, under the Sale of Goods Acts (in UK, Singapore, Australia,...) or Commercial Codes (in France, Germany, Vietnam,...), the sale contracts have the following implied terms:
- the seller has the right to sell the goods. This is also a condition of the contract
- the goods are free from undisclosed security interests
- the goods supplied under the contract will be reasonably fit for any purpose which the buyer made known to the seller
- sales of unseen goods will be of merchantable quality, and match their description and conform with a sample.
- Passing of risk
- Passing of possession and title
...
Reference:
LO 3, AC 3.1
NEW QUESTION 50
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