CIPS Exam L4M3 Topic 3 Question 56 Discussion

Actual exam question for CIPS's L4M3 exam

Question #: 56
Topic #: 3

[All L4M3 Questions]

EAC Facilities Management is planning for a new construction project in the suburban are

a. They decide to use NEC or FIDIC model form of contract for this project. Is this a right course of action?

AYes, these forms aim at balanced risk/reward allocation between the parties

BNo, the buyer will bear all the risks derived from the contract

CYes, using these forms will eliminate all the risks

DNo, the contractor won't understand the legal terminology in the contract forms

Show Suggested Answer

Suggested Answer: A

Construction procurement is particularly complex and risky. Forming a contract in construction may take lots of time and energy of both client and contractor. Therefore, standardisation in construction contract would help the buying organisation to save their precious resources. Furthermore, the wording of these model form contracts is accurate as it has been agreed among the professionals within an industry.

One of the advantage of using model forms of contract is the balanced of risk and reward allocation between the contractor, consultant engineer and the client.

- An Introduction to FIDIC model contracts

- CIPS study guide page 139-147

LO 3, AC 3.1

by Janine at Mar 18, 2025, 09:11 AM

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