L6M5 Exam Questions & Answers
Strategic Programme Leadership • CIPS
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Sample L6M5 Questions
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Which of the following is true about Engineering, Procurement, and Construction (EPC) Contracts? (Select all that apply.)
EPC contracts, commonly referred to as Turnkey Projects, are widely used in construction and infrastructure projects. These contracts require the contractor to design, procure materials, and construct the project to deliver a complete and operational facility to the client.
Answer Options:
The correct answers are 1, 3, and 4 (p.8). Option 2 is incorrect as it describes a DBO (Design-Build-Operate) contract rather than an EPC contract. Option 5 is incorrect because it describes a PPP (Public-Private Partnership) contract, not an EPC contract. [P.8]
In which scenario would a Cost Reimbursable contract be most suitable?
Answer Options:
Cost Reimbursable contracts are widely used in research projects where the exact scope is uncertain (p.69). These contracts allow for flexibility in cost adjustments based on project progress. Option B describes a contract using cost-plus pricing, and Options C and D do not fit this contract model. [P.69]
Which of the following is NOT a benefit or function of a professional body?
Professional bodies are established organizations that promote industry standards, ethical conduct, and professional development.
Answer Options:
Professional bodies do NOT control pricing in the industry, as this would be market interference. Governance, productivity improvements, and networking are valid functions. [P.31]
Which of the following aspects of culture make up the 'paradigm of the working environment' according to Gerry Johnson and Kevan Scholes? Select all that apply
Stories, rituals, symbols, and control systems are part of the Cultural Web. The other two aspects of the Cultural Web (organisational structure and power structure) are not listed here.
Mustard Ltd contracted Red Ltd for IT services, requiring 98% internet connectivity.
Red Ltd has only achieved 90% connectivity despite multiple meetings.
Mustard Ltd now seeks to terminate the contract.
Q: Can Mustard Ltd terminate the contract?
Answer Options:
Connectivity is listed as a warranty, not a condition (p.125).
Warranty breaches allow for damages but do not permit contract termination.
If it were a 'condition' instead of a warranty, termination would be allowed. [P.125]
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