Free CIPS L4M3 Practice Exam with Questions & Answers | Set: 7

The license can be amended during its lifespan. However, in this case, it already has a clauseallowing for mechanism of variation which sets out who can authorise changes and prohibits any oral variation. Therefore, the agreement between Rock's director and MWB credit controller is not an effective variation to the license.

The request for quotations is a procurement method that is used for small value procurements of readily available off-the-shelf goods, small value construction works, or small value services procurements. Request for quotations works best under a framework agreement

This procurement method is also known as invitation to quote and shopping, and it does not require the preparation of tender documents to the same extent as open tendering, request for proposals or two-stage tendering.

Among 4 options:

- "Purchase of a small number of standardised products under a framework agreement": the products are standardised and there is a framework agreement in place, so RFQ is the best solution.

- "Purchase of complex machinery": Complex machinery is often a large purchase. Furthermore, suppliers' quality may vary. So RFQ is not suitable, instead, depending on the situation, buyer may opt ITT or RFP to purchase this type of machinery.

- "Design of a unique and complex software code": Unique and complex software is not off-the-shelf, thus RFQ is not suitable.

- "When the buying organisation does not know the requirements in details and needs the input from suppliers": When the detailed requirements are unknown, the best solution is request for proposal or developing dialogue with suppliers.

An ITT specifies what the buyer requires — including delivery milestones, scope, and evaluation criteria.

Supplier rates and BAFOs are part of supplier responses, not ITT content.

An insurance policy transfers a specific set of risks such as the fire and flood risk for a particular asset.

The legal liability does not transfer to the insurance company (known as insurer).

Model contracts are pre-drafted templates commonly accepted in specific industries, helping to reduce negotiation time and increase consistency. They are often familiar to both parties, reducing misunderstandings. However, they are not court-approved by default and may not suit all complex needs without modifications.

Developing new tender specifications should draw on:

Current supplier experience (1);

Alternative suppliers’ input (3);

Performance and usage data (4).Maintenance services (2) are unrelated to cleaning.

International labour standards concern working conditions, fair pay, and human rights. Requiring certification to an ethical trading initiative (A) directly addresses these labour issues (e.g. ETI, SA8000).

The other options address mainly environmental performance (carbon footprint, ecological materials, waste).

Liquidated damages are pre-agreed fixed sums payable for specific breaches, such as late delivery.

Clauses 1 and 3 meet this definition.

Clause 2 is uncertain (“to be agreed”) and unenforceable; clause 4 is a warranty, not LDs.

Negotiated terms can define conditions and contingencies — “if-then” clauses — such as force majeure, variation, or termination events.

These allow the contract to handle changes flexibly.