CIPS L6M5 Question Answer
Giant Construction Company is working on five large-scale projects. Each project has a specific contract type and pricing mechanism.
Your task is to match the correct contract type and pricing mechanism to each project.
Project Descriptions
Project 1
Description: Giant is collaborating closely with the client to construct a hospital. The client has provided a cost estimate, and any savings will be shared between the parties. This contract is popular in the public sector due to its flexibility.
Project 2
Description: This suite of contracts is known as the "rainbow suite". It is rigid, meaning no changes can be made after signing. The price was fixed at the date of signing.
Project 3
Description: This international project involves the construction of wind turbines. The pricing mechanism calculates costs for each individual turbine.
Project 4
Description: The most popular form of contract in construction, utilizing a Contract Administrator to ensure timely information flow. Since the scope was not clearly defined, Giant is working with the client on a cost-sharing basis plus a small profit margin.
Project 5
Description: The project involves ICT services and software provision. Payments are linked to milestone completion during the project implementation phase.
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