CIPS L4M3 LO1-Legal issues in relation to commercial contracts- Qs & As
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Course
CIPS
Institution
CIPS
CIPS L4M3 LO1-Legal issues in relation to commercial
contracts- Qs & As
what issues can occur as a result of misunderstanding in the specification? Correct Ans--
poor bids being received
- claims for extensions of time or additional payments
- administration costs resulting from contract clar...
CIPS L4M3 LO1-Legal issues in relation to commercial
contracts- Qs & As
what issues can occur as a result of misunderstanding in the specification? Correct Ans--
poor bids being received
- claims for extensions of time or additional payments
- administration costs resulting from contract clarification orders
what are the main characteristics of a performance specification? Correct Ans-- focus on
outputs
- sets out result to be achieved
- the 'what', not the 'how'
- gives the supplier flexibility to present solutions that the buyer may not have considered
what are the main characteristics of a conformance specification? Correct Ans-- focus on
inputs
- gives specific methods, processes and materials
- may identify specific manufacturers or components
- the 'how' as well as the 'what'
- ties supplier to set details
what 10 things should you think about when designing a specification? Correct Ans--
purpose
- perspective
, CIPS L4M3 LO1-Legal issues in relation to commercial
contracts- Qs & As
- scope
- improvement and innovation
- regulatory compliance and quality
- type
- relevance
- performance
- clarity
- service conditions
what problems can occur is the specification if not fully incorporated into the contract?
Correct Ans-- any total agreement clauses in the contract will invalidate anything not
actually laid down in the contract documents, including anything included in the tender
information
- any clarification or amendments taken during the tender process are likely to be omitted
what are they key components of a performance management framework? Correct Ans--
KPIs - what you are measuring
- targets - the performance level to be achieved
- consequences - what happens if the measures are not achieved and/or if they are exceeded
why is it worth setting up and measuring KPIs? Correct Ans-- 'more or less' is never good
enough
, CIPS L4M3 LO1-Legal issues in relation to commercial
contracts- Qs & As
- you cannot rely on good luck
- even the good relationship that you know to exist at the beginning of a contract cannot be
guaranteed to continue
what is an estimate? Correct Ans-a supplier best guess at what the price will be. it has no
legal standing
what is a tender? Correct Ans-a bid obtained via a formal process
what is a quotation? Correct Ans-sometimes called a quote, this is a firm price offer
obtained via a formal or informal process; normally it only relates to price on the basis of
indicated quality
what is a framework agreement? Correct Ans-a formal agreement between two
organisations that is intended to become legally binding in the event that a contract is created
what situations should you use a quotation? Correct Ans-- low value, low risk purchases
- the spec and delivery times are fixed
- suppliers are pre-qualified
- a framework or dynamic purchasing system has locked down the contract terms and price is
the only variable
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