Consequences and actions that arise from certain KPI scores must be...? Select TWO that apply.

Carillion Ltd is a major construction contractor in the UK. The company commits to continuous improvement and sets out a performance management program that is integrated across the organisational, individual, and supplier levels. To ensure that the suppliers acknowledge the program, every time negotiating the contract terms with suppliers, the procurement team of Carillion appends a performance management framework to the draft document as a schedule. Is the action of procurement team appropriate?

Maximum Score 1

An effective key performance indicator should be:

Which of the following will be always automatically deemed as a consideration?

Which of the following key performance indicators are most likely to use numerical data as the main source of information?

The critical evaluation of project deliverables

The subjective responses of a satisfaction survey regarding a service

The instances of late deliveries within a given month

The occurrence of accidents and near misses in a year

Maximum Score 1

Procurement professionals must have an awareness of labour standards and environmental, social and governance issues when contracting with suppliers. Which TWO of the following are relevant for consideration?

A procurement professional is preparing a sale & purchase contract of a machinery. Which of the following clauses should be added to the contract? Select TWO that apply

Maximum Score 1

The nature of the "Battle of the forms" is when both buyer and supplier are attempting to ...

Which of the following would be suitable key performance indicators (KPIs) for supplier performance?

Ensure you have customer loyalty

Value or percentage of cost reductions obtained

Win an award in the next 12 months

Percentage of on-time in full deliveries

Which of the following is a true statement on express and implied terms?

Michelle contacts Hannah and asks her if she would be interested in purchasing her car for £2000. Hannah immediately takes £2000 to Michelle and says she wants to buy the car. Michelle subsequently refuses to proceed. Has the contract between Michelle and Hannah been made?

Sally places a purchase order to the supplier for some components that her company requires. The supplier delivers the goods as she asks, but the quality assurance team finds that these components are defective and unfit for the company's operations. Which document is the ground to decide whether the goods received are fit for purpose?

Which of the following contracts would be best suited to a ‘variable pricing’ arrangement?

In the UK, Unfair Contract Terms Act 1977 regulates which of the following?

In which of the following conditions, request for quotation produces the best results?

Which of the following are likely to be advantages of using invitation to tender? Select TWO that apply:

A Service Level Agreement (SLA) is a formal statement of performance. Which of the following are aspects of a service level agreement?

A force majeure clause

Key performance indicators

A penalty clause for non-performance

The legal jurisdiction of the contract

Maximum Score: 1

Buyer O has placed an order for the supply and installation of six new servers for a total amount of £600,000 from Supplier A. Which of the following could potentially be treated as examples of a liquidated damages clause within the contract for the supply of the servers?

If the supplier delivers any of the servers late, £1,000 per server will be deducted from the order per day

This contract is subject to delay remedies of £X - the amount to be agreed by both parties during delivery

The sum for breach of the completion date for the order is £40,000 per day up to a maximum of 50% of the contract price

If the performance of any of the servers degrades within five years, a full refund of £600,000 will be provided

Which of the following standards gives guidance on the layout and preparation of specifications?

Express terms in a contract are stated in which of the following? Select TWO that apply

Which of the following are the 'fundamental' labour standards laid down by the International Labour Organisation?

1. Elimination of child labour

2. Payment of a minimum wage

3. The right to collective bargaining

4. Abolition of forced labor

A buyer is procuring innovative new IT systems and has issued a performance specification as part of the invitation to tender. Is this a suitable approach?

In which scenarios would it be appropriate for a procurement organisation to include contractual indexation and/or price adjustment formulae clauses in a services contract? Select TWO that apply.

Under English law's general legal principles of contract formation, which of the following are likely to be offers? Select TWO that apply.

Which of the following is likely to reduce risks of different rules regarding when offers and acceptance become effective between legal systems?

Curnoe Ltd supplied tyres to Garage Ltd. Garage Ltd agreed in the contract that for any specified breaches of contract, it would pay Curnoe Ltd £5 per tyre sold in breach. It subsequently sold tyres at below the listed price, which was one of the breaches mentioned in the contract. What is the £5 per tyre provision an example of?

Which of the following are examples of express terms in a contract? Select TWO that apply.

A procurement professional is drafting payment terms for a commercial contract. He is considering about payment method if defective products are found. Which of the following should be embedded in payment terms to control this issue?

Misrepresentation can be defined as a false statement of material fact made by one of the contracting parties which was intended to (and did) induce the other party to make the contract. What remedies are available in this instance to the innocent party?

Which of the following are good examples of a Key Performance Indicator?

The total number of services provided

Reduction rate in goods or services

Complaints resolved within two days

Delivery of goods on time and in full

A procurement officer decides to approach the supply market regarding a procurement activity that will specify the use of technology that is very new to the market. The procurement officer is taking this step before the formal tender process is started. Is this approach permitted?

Which of the following sections would typically be included in a specification for services? Select THREE that apply.

As part of a tender, which of the following are advantages that a purchasing organisation would expect to achieve by specifying that suppliers hold certification to an international environmental management standard, such as ISO 14001?

It provides assurance that bidders have achieved a common standard of practice

It provides a guarantee that any polluting suppliers will be unable to tender

The standard is recognisable to local and international bidders

It removes the need to conduct internal environmental training

A large company supplies a lot of products. Their shipments are often delayed and customers are not satisfied. Which of the following KPIs is most likely to be applied to this situation?

Procurement professionals must have an awareness of labour standards and environmental, social and governance issues when contracting with suppliers. Which TWO of the following are relevant for consideration?

When writing an implementation section for an IT requirements specification, which factors would be appropriate for inclusion? Select TWO that apply.

Company A buys a lorry from Company B on hire purchase. During the contractual period, Company A makes default in paying the instalment. Company B has...?

Solus Trading has begun a project to improve the level of delivery performance from its suppliers. They need to develop a key performance indicator (KPI) to measure the performance improvement. Which KPI would be suitable to use?

Which of the following statements is true about model form of contract?

Which of the following will always give rise to a claim of misrepresentation?

1. Silence

2. False thought

3. Statement of fact

4. Representation by conduct

John is a new procurement manager who has recently joined Smiths Facilities Management Ltd. The company provides maintenance services through the utilisation of subcontractors. It is experiencing a number of issues with its supply chain which has resulted in customer complaints, and John would like to introduce service level agreements (SLAs) to some of its key providers. Which of the following should be included?

How often the service will be provided

The procedures to be followed to resolve disputes

The qualifications needed by staff providing the service

The stock maintained by the subcontractor

Which of the following would be useful tools to incentivise supplier innovation over the duration of the contract?

1. Gainshare arrangement

2. Liquidated damages

3. Service credits

4. Fixed bonus payments

Buyer D agrees a contract with Supplier C which includes the words 'to be agreed' in relation to the date for delivery of the goods. At the time of the contract, Buyer D is aware that the goods take two days to produce and one day to deliver. Buyer D contacts the supplier one week later, requesting the goods be delivered the following day. Supplier C is unable to deliver the next day but rather delivers the goods three days later. Is it the case that Buyer D can legally refuse to pay for the goods because Supplier C is in breach of contract?

Maximum Score 1

Drafting a specification is important because these documents become embedded within the contract and therefore, are legally binding. Is this statement true?

Which of the following are likely to be advantages of using invitation to tender? Select TWO that apply:

Short turnaround times

Maximum Score: 1

Which of the following would be considered as advantages of an industry model form contract?

It provides greater flexibility for negotiation

It reduces the cost of contract development

It is usually designed to be fair to both parties

It removes the need for the buyer to understand it

Which of the following is the international standard for labelling hazardous substances?

Ellie is a junior buyer and her supplier asks her to use their contract terms for an order. Which of the following are clauses that may be included in the supplier contract that could pose a risk to Ellie's business? Select TWO that apply.

A senior procurement specialist in UK is preparing a specification in which ISO standards are used to send to global suppliers. Is this action appropriate?

The contracts manager at a newly established private transport agency, Travel Response Services (TRS), has been asked to draft a set of standard terms and conditions that will protect customers’ personal information when it is passed to sub-contracted suppliers by TRS. Which standard clause would be best suited for this?

Rochdale Ltd is looking for a new IT system to automate some of its operations. In designing the specification, procurement manager supposes that it should be done solely by the IT department who have deep expertise on this matter. Is procurement manager’s opinion appropriate?

Maximum Score: 1

Setting key performance indicators (KPIs) for supplier performance should ensure ...

Maximum Score: 1

A service contract for cleaning is due for expiry after a five year duration. Which of the following are good sources of data to create a specification for the new invitation to tender?

Incumbent supplier

Maintenance services

Alternative suppliers

Management information

A company needs to source a product from oversea. It wants to overcome technical barrier to cross-border trade by using standards in the specification. Which of the following is most likely to be incorporated into that specification?

Which of the following is the reason why liquidated damage clauses are embedded into a contract?

Prior to circulating the service specification to a tendering supplier, it is good practice for the purchasing organisation to request completion of a non-disclosure agreement. Is this statement correct?

Which of the following should be done by procurement professionals right after obtaining a pre-written specification for a critical item so that the added value will be the greatest?

A category buyer is purchasing medical gases for a hospital, but is experiencing volatile and unfavourable market conditions due to multiple global external factors. Owing to the volatility, the hospital's finance director has tasked the buyer with providing certainty of costs for the next 18 months. Which of the following pricing methods will enable budgeting certainty, despite the highly volatile market conditions?

Maximum Score 1

A purchase order has been raised for £5,000. It allows the user department to order items of a £50 value when they need them. This is an example of what type of order?

Danielle buys a car from Aaron. Not long after, she receives an proposal from Brian, who isinterested in buying the car but his budget is very constraint. Then, Brian decides to sign a hire purchase agreement with Danielle which lasts 4 years. Brian lives very far from Danielle, so hehires Charlie to deliver the car to his place. During the transport, Charlie has an accident and the car is written off. At the time of accident, who has the title of the car?

Which of the following are likely to be implied terms in a contract? Select TWO that apply:

Which of the following are likely to be advantages of using request for quotation? Select TWO that apply:

Which of the following shall help the purchaser control the selection of tier 2 suppliers?

Which of the following is an example of liquidated damages clause?

1. "In the event of a delay to the Offshore Installation Completion Date as per the Contract Schedule for which Contractor is solely responsible, Contractor shall pay to Company 0.25% per day of delay, subject to a maximum of 10% of the Initial Contract Price."

2. “If Seller breaches its obligation to deliver goods in accordance with the schedule provided for in this contract, Seller shall pay Buyer $x per day for each day of delay"

3. "The Contractor shall defend and hold the Buyer, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the Buyer."

4. "The contract is subjected to delay remedies. The amount will be agreed by both parties during the delivery"

Which of the following should be applied when measuring frequency of on-time deliveries during a contract period?

Which of the following are likely to be express terms in a contract?

1. Legislation

2. Custom and practice

3. Contract particulars

4. Terms and conditions

Which of the following are typically included in an SLA? Select TWO that apply:

Which of the following should be specially noticed in market dialogue with suppliers in specification development?

The cost in cost reimbursable contract is...?