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CIPS L4M3 Exam Topics

CIPS L4M3 Exam Overview :

Exam Name: Commercial Contracting
Exam Code: L4M3
Certifications: CIPS Level 4 Diploma in Procurement and Supply Certification
See Expected Questions: CIPS L4M3 Expected Questions in Actual Exam

CIPS L4M3 Exam Objectives :

Section Objectives
1.0 Understand the legal issues that relate to the formation of contracts 1.1  Analyse the documentation that can comprise a commercial agreement for the supply of goods or services
  •     Invitation to tender or request for quotation
  •     Specification
  •     Key performance indicators (KPIs)
  •     Contractual terms
  •     Pricing and other schedules (such as for health and safety records, details of suppliers staff, use of sub-contractors, non-disclosure/confidentiality agreements)

1.2  Analyse the legal issues that relate to the creation of commercial agreements with customers or suppliers
  •     Invitations to treat or invitations to negotiate
  •     Rules relating to offer and acceptance, consideration, intention to create legal relations and capacity tocontract
  •     The battle of the forms and precedence of contract terms
  •     Risks presented by contracting on suppliers terms or through oral contracts
  •     The Vienna Convention on the International Sales of Goods
  •     Misrepresentations made pre-contract award

1.3  Compare types of contractual agreements made between customers and suppliers
  •     One off purchases
  •     Framework arrangements and agreements
  •     The use of mini-competitions
  •     Call offs
  •     Services contracts
  •     Contracts for the hire and leasing of assets
2.0 Understand the fundamentals of specifications and key performance indicators that are included in contractual arrangements made with suppliers 2.1  Analyse the content of specifications for procurements
  •     Drafting specifications and developing marketdialogue with suppliers
  •     The use of standards in specifications
  •     Typical sections of a specification
  •     Standardisation of requirements versus increasing the range of products
  •     Including social and environmental criteria inspecifications
  •     The role of Information Assurance in developingspecifications

2.2  Appraise examples of key performance indicators (KPIs) in contractual agreements
  •     Defining contractual performance measures or key performance indicators (KPI)
  •     The use of service level agreements
  •     Typical KPI measures to assess quality performance, timeliness, cost management, resources and delivery
3.0 Understand the key clauses that are included informal contracts 3.1  Analyse contractual terms for contracts that arecreated with external organisations
  •     The use of express terms
  •     The use of standard terms of business by bothpurchasers and suppliers
  •     The use of model form contracts such as NEC, FIDIC,IMechIEE

3.2  Recognise examples of contractual terms typically incorporated into contracts that are created with external organisations
  •     Key terms in contracts for indemnities and liabilities, sub-contracting, insurances, guarantees andliquidated damages
  •     Terms that apply to labour standards and ethical sourcing

3.3  Recognise types of pricing arrangements incommercial agreements
  •     The use of pricing schedules
  •     The use of fixed pricing arrangements
  •     Cost plus and cost reimbursable pricing arrangements
  •     The use of indexation and price adjustment formulae
  •     The use of incentivised contracts
  •     Payment terms
Official Information https://www.cips.org/qualifications/diploma-in-procurement-supply/commercial-contracting/

Updates in the CIPS L4M3 Exam Topics:

CIPS L4M3 exam questions and practice test are the best ways to get fully prepared. Study4exam's trusted preparation material consists of both practice questions and practice test. To pass the actual  Level 4 Diploma in Procurement and Supply L4M3  exam on the first attempt, you need to put in hard work on these questions as they cover all updated  CIPS L4M3 exam topics included in the official syllabus. Besides studying actual questions, you should take the  CIPS L4M3 practice test for self-assessment and actual exam simulation. Revise actual exam questions and remove your mistakes with the Commercial Contracting L4M3 exam practice test. Online and Windows-based formats of the L4M3 exam practice test are available for self-assessment.

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