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CIPS Exam L4M3 Topic 2 Question 44 Discussion

Actual exam question for CIPS's L4M3 exam
Question #: 44
Topic #: 2
[All L4M3 Questions]

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?

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Suggested Answer: C

Performance management framework often consists of KPIs, targets and consequences that arise from achieved scores. To ensure that the framework has binding effect on contracting parties, it should be developed, appended to the main contract document and agreed by both parties. So the answer should be 'Yes, because the framework should have legal standing as a part of contract'.


LO 1, AC 1.1

by Lilli at Sep 18, 2024, 09:37 PM

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Jeanice
20 days ago
This is like asking the fox to guard the henhouse. Carillion should let the suppliers develop their own performance management framework, not force it on them.
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Peggy
2 days ago
B) No, because the performance management should be solely developed by suppliers
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Iluminada
8 days ago
A) No, because the framework will increase the complexity of the contract
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Chauncey
1 months ago
I agree with Nan. Having the framework as part of the contract ensures that everyone is on the same page and accountable.
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Man
1 months ago
I disagree with Nan. I believe the suppliers should develop the performance management framework themselves.
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Nan
1 months ago
I think the procurement team is doing the right thing by appending the performance management framework to the contract.
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Val
1 months ago
I agree with the action. Carillion is trying to implement early supplier involvement, which is a great way to drive continuous improvement across the supply chain.
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Muriel
2 days ago
D) Yes, because Carillion wants to implement early supplier involvement
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Kris
20 days ago
I agree, early supplier involvement is crucial for continuous improvement
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Cyril
28 days ago
C) Yes, because the framework should have legal standing as a part of contract
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Ricki
30 days ago
A) No, because the framework will increase the complexity of the contract
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Rueben
1 months ago
Haha, I bet the suppliers are thrilled to have this extra paperwork thrown at them. Carillion must really want to keep them on their toes!
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Freeman
2 months ago
I disagree. The performance management should be developed solely by the suppliers, not imposed by Carillion. This will increase the complexity and potentially lead to conflicts.
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Shaun
25 days ago
Carillion should focus on collaborating with suppliers instead of imposing frameworks.
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Jacqueline
29 days ago
I agree, it should be up to the suppliers to develop the performance management.
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Desmond
1 months ago
I think the framework will make things more complicated.
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Ernie
2 months ago
I think the procurement team's action is appropriate. Appending the performance management framework as a schedule to the contract ensures it has legal standing, which is crucial for its implementation.
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Brandon
1 months ago
C) Yes, because the framework should have legal standing as a part of contract
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Larae
2 months ago
A) No, because the framework will increase the complexity of the contract
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