CIPS Updated L4M3 Exam Questions and Answers by jai

Express terms are those specifically stated in writing or verbally agreed in the contract:

Retention of title term (A) – typically clearly written in the contract.

Liquidated damages term (C) – also explicitly written and agreed.

By contrast:

Terms inserted by the Sale of Goods Act, business efficacy test, or custom of the trade are implied terms, not express.

Supplier performance management and monitoring is a fundamental part of contract management. It starts with setting KPIs, targets and consequences or actions that arise from KPI scores. The measures, objectives and targets used in the monitoring of the supplier’s performance must reflect those that were agreed when the contract was let. That is why it is important to specify a commitment to continuous improvement at the outset. It would be unfair to the supplier to suddenly introduce a range of measures after the contract had begun - however if such an introduction mid-term through the contract is unavoidable then it should be negotiated and agreed in a professional manner and not merely imposed on the supplier.

In conclusion, the details of how KPIs will be monitored and the actions or consequences resulting from scores achieved must be documented and agreed between the parties. This details may be embedded in the specification or the main body of the contract or it may be set out in a SLA.

Information Assurance (IA) is the practice of managing information-related risks and the steps involved to protect information systems such as computer and network systems. The IA transformation is a partnership that stretches across the Department of Defense (DoD), Office of National Intelligence, Committee on National Security Systems, National Institute of Science and Technology (NIST), and the Office of Management and Budget.

The US Government's definition of information assurance is:

“measures that protect and defend information and information systems by ensuring their availability, integrity, authentication, confidentiality, and non-repudiation. These measures include providing for restoration of information systems by incorporating protection, detection, and reaction capabilities.”

In a fixed price contract:

The price is agreed and stays fixed, regardless of changes in actual costs (unless a separate adjustment clause exists).

Key risks:

If costs rise significantly (materials, labour, etc.), the supplier’s profit is squeezed or wiped out and the supplier may default or fail to perform → (A) is a recognised risk.

If costs fall, the supplier’s actual cost base drops but the selling price is fixed, allowing the supplier to make excess or windfall profits → (D) is another recognised risk.

The other options:

(B) Under a pure fixed price arrangement, the supplier is normally not entitled to claim for unforeseen additional costs unless expressly provided for.

(C) An inflation-linked price is not truly “fixed”; that’s a variable/indexed price mechanism.

(E) A supplier may attempt legal action in some circumstances but “will sue if he makes a loss” is not a standard, defined procurement risk in fixed price contracts.