©EVERLY 2024/2025 ALL RIGHTS RESERVED.
CIPS L6M5 - Strategic Programme
Leadership LO1 Exam Questions And
Answers (Guaranteed A+)
Van Weele purchasing development model - Answer✔1. Transactional orientation, serve the
factors - supply relationship is reactive, relationship based on provision of raw materials and
components.
2. Commercial orientation, lowest unit price - relationship is based on price negotiation aimed at
achieving lowest prices for the organisation.
3. Co-ordinated purchasing - procurement and supply using uniform policies, processes and
systems. Often bureaucratic and slow to respond to units.
4. Internal integration cross-functional purchasing - relationship becomes more integrated.
Focuses on cross functional problem solving
5. External integration: supply chain-management - Outsourcing strategies developed with
supply chain partners.
6. Value chain orientation - Recognises P&S strategy needs to deliver value to the end customer,
strong relationships encouraged with suppliers.
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EPC Contract - Answer✔An EPC Contract is appealing to the client as a turnkey solution and a
risk mitigation tool - the EPC contractor assumes all of the responsibilities and risk of
completing a programme
EPC Contract vs D&B - Answer✔Close links between EPC and D&B contracts - the difference
is that the EPC contract requires the contractor the design and construct a building to a
specification where it is capable of producing a certain level of output.
Mechanical completion - Answer✔Start up and commissioning of all systems in a building
Performance Testing - Answer✔Demonstrates that the building is suitable for the requirements
of a client
Performance Testing - Answer✔Is important in terms of the programme as it allow the
contractor to avoid LDs or claim bonuses if the programme is completed early
provisional acceptance - Answer✔the client accepts the performance on the basis that the
contractor remains responsible for finding a remedy
Commercial operation - Answer✔Upon acceptance, the responsibility and ownership transfers to
the client and the Commercial operation of the facility may commence
EPC contracts - Answer✔Are:
- Fixed price contracts
- Have a fixed completion date
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- Limited contractor claims as all risk is passed to the contractor
- Limits of liability - EPC contractors seek cap
EPC contracts - Answer✔The biggest risks that the client bares on an EPC contract is ensuring
that the spec is correct, and communicating what is required to teh contractor
Management Contractor Warranties - Answer✔Although clients only deal with one contractor
under mgmt. contracting, it may request warranties from the individual works contractors so that
direct claims can be made in the event that mgmt. contactor becomes insolvent
Statement of need - Answer✔After a review of the statement of need, it may be decided that a
new progrmme is not needed
Workflow plan for: Management contracting and construction management - Answer✔-
Business Justification = Statement of need and prepare preliminary BC
- Feasibility Study = Allows the client to prepare a business case for the proposed option
- Project Brief = the basis for the design
- Concept Design = the initial idea for the facility design is proposed
- Appointment of Management contractor or construction manager = tender, framework, referral,
interview
- Production information = the info needed for the works contractor to perform the activities is
prepared
- tender works contract = works or trade contracts released for tender
3|Page
CIPS L6M5 - Strategic Programme
Leadership LO1 Exam Questions And
Answers (Guaranteed A+)
Van Weele purchasing development model - Answer✔1. Transactional orientation, serve the
factors - supply relationship is reactive, relationship based on provision of raw materials and
components.
2. Commercial orientation, lowest unit price - relationship is based on price negotiation aimed at
achieving lowest prices for the organisation.
3. Co-ordinated purchasing - procurement and supply using uniform policies, processes and
systems. Often bureaucratic and slow to respond to units.
4. Internal integration cross-functional purchasing - relationship becomes more integrated.
Focuses on cross functional problem solving
5. External integration: supply chain-management - Outsourcing strategies developed with
supply chain partners.
6. Value chain orientation - Recognises P&S strategy needs to deliver value to the end customer,
strong relationships encouraged with suppliers.
1|Page
, ©EVERLY 2024/2025 ALL RIGHTS RESERVED.
EPC Contract - Answer✔An EPC Contract is appealing to the client as a turnkey solution and a
risk mitigation tool - the EPC contractor assumes all of the responsibilities and risk of
completing a programme
EPC Contract vs D&B - Answer✔Close links between EPC and D&B contracts - the difference
is that the EPC contract requires the contractor the design and construct a building to a
specification where it is capable of producing a certain level of output.
Mechanical completion - Answer✔Start up and commissioning of all systems in a building
Performance Testing - Answer✔Demonstrates that the building is suitable for the requirements
of a client
Performance Testing - Answer✔Is important in terms of the programme as it allow the
contractor to avoid LDs or claim bonuses if the programme is completed early
provisional acceptance - Answer✔the client accepts the performance on the basis that the
contractor remains responsible for finding a remedy
Commercial operation - Answer✔Upon acceptance, the responsibility and ownership transfers to
the client and the Commercial operation of the facility may commence
EPC contracts - Answer✔Are:
- Fixed price contracts
- Have a fixed completion date
2|Page
, ©EVERLY 2024/2025 ALL RIGHTS RESERVED.
- Limited contractor claims as all risk is passed to the contractor
- Limits of liability - EPC contractors seek cap
EPC contracts - Answer✔The biggest risks that the client bares on an EPC contract is ensuring
that the spec is correct, and communicating what is required to teh contractor
Management Contractor Warranties - Answer✔Although clients only deal with one contractor
under mgmt. contracting, it may request warranties from the individual works contractors so that
direct claims can be made in the event that mgmt. contactor becomes insolvent
Statement of need - Answer✔After a review of the statement of need, it may be decided that a
new progrmme is not needed
Workflow plan for: Management contracting and construction management - Answer✔-
Business Justification = Statement of need and prepare preliminary BC
- Feasibility Study = Allows the client to prepare a business case for the proposed option
- Project Brief = the basis for the design
- Concept Design = the initial idea for the facility design is proposed
- Appointment of Management contractor or construction manager = tender, framework, referral,
interview
- Production information = the info needed for the works contractor to perform the activities is
prepared
- tender works contract = works or trade contracts released for tender
3|Page
