CIPS Exam L4M3 Topic 6 Question 4 Discussion

Actual exam question for CIPS's L4M3 exam

Question #: 4
Topic #: 6

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

A3 and 4 only

B2 and 4 only

C1 and 4 only

D1 and 3 only

Show Suggested Answer

Suggested Answer: C

Gainshare is an incentive for cost control

Liquidated damage is common type of disincentive for late completion

Service credit is a remedy for not achieving targets set out in an SLA

Fixed bonus payment is an incentive for early completion

LO 3, AC 3.3

by Adelina at Oct 13, 2022, 06:36 AM

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