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Commercial Contracting
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CIPS L4M3 Questions and Answers
Which of the following are good examples of a Key Performance Indicator?
The total number of services provided
Reduction rate in goods or services
Complaints resolved within two days
Delivery of goods on time and in full
Bandpro is a reseller of branded computer products to the private and public sector. The procurement team must purchase 500 items each day solely by multiple phone calls and emails to suppliers. Due to this practice, it takes a lot of time to track and collect relevant documents.Some important documents even get lost, which makes procurement audit more burdensome. Which of the following would increase the robustness of audit trails in procurement activities?
Which of the following should be done by procurement professionals right after obtaining a pre-written specification for a critical item so that the added value will be the greatest?
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This module explores the principles and practices of developing, managing, and monitoring commercial contracts. It ensures professionals can handle supplier agreements effectively.
It’s designed for procurement and supply professionals who want to strengthen their contract management knowledge, typically at an operational or tactical level.
Strong contract knowledge reduces risks, ensures compliance, and helps organizations maximize value from suppliers. This exam builds those skills.
Experience in procurement helps, but it’s not mandatory. The exam is structured so even learners new to contracts can progress with study and preparation.
Commercial Contracting is one of the core units in the diploma, complementing subjects like sourcing, negotiation, and business needs in procurement.
You’ll study legal aspects of contracts, contract formation, key terms and conditions, managing supplier performance, and dealing with disputes.
The exam is computer-based, objective response (multiple-choice and scenario-based questions), ensuring practical knowledge is assessed.
The duration is 90 minutes, giving candidates sufficient time to work through approximately 60 questions.
The pass mark is 70%. CIPS uses rigorous standards to ensure only candidates with solid understanding achieve certification.
Primarily, the exam is available in English, but availability in other languages depends on your local CIPS testing center.
Scope and Influence of Procurement and Supply
Defining Business Needs
Ethical and Responsible Sourcing
Commercial Negotiation
Supplier Relationships
Whole Life Asset Management
Procurement and Supply in Practice
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TESTED 01 Dec 2025
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