Pass Authentic CIPS L6M5 with Free Practice Tests and Exam Dumps [Q50-Q73]

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Pass Authentic CIPS L6M5 with Free Practice Tests and Exam Dumps

New L6M5 Exam Questions Real CIPS Dumps

CIPS L6M5 Exam Syllabus Topics:

Topic	Details
Topic 1	Understand program leadership approaches: This section measures the skills of Programme Leaders in understanding strategic cost management approaches. It covers budgetary control, value engineering, and cost transparency methods. A key skill measured is assessing strategic cost management techniques effectively.
Topic 2	Understand the role of culture on achieving program success: This section measures the skills of Organizational Development Specialists in understanding organizational culture’s impact on program success. It covers identifying culture types and levels within organizations. A key skill measured is critically assessing organizational culture’s influence.
Topic 3	Understand contracting for programmers: This section measures the skills of Contract Managers and focuses on comparing various contracting options for programs. It includes client-coordinated approaches, engineering procurement and construction (EPC) contracts, management contracting, and public-private partnerships. A key skill measured is the ability to evaluate different contract types effectively.

Q50. Fire Light Corporation has secured a contract to design a new bridge for a local council. The council wants a price set in advance but allows for minor adjustments due to unforeseen circumstances. Which pricing mechanism is most suitable?

firm fixed price

fixed lump sum

bill of quantity

target costing

Q51. Which of the following aspects of culture make up the ‘paradigm of the working environment’ according to Gerry Johnson and Kevan Scholes? Select all that apply

stories

artifacts

rituals

symbols

control systems

Q52. Which of the following is NOT a benefit or function of a professional body?
Professional bodies are established organizations that promote industry standards, ethical conduct, and professional development.
Answer Options:

Governance and ethical standards

Ensuring prices remain low

Raising productivity

Creating international networks

Q53. Casper is conducting a Variance Analysis of the company’s budget. What is its main purpose?
Answer Options:

To identify which departments have overspent

To identify where cost savings can be made

To minimize inefficiencies

To analyze whether costs are fixed or variable

Q54. Which of the following characteristics form part of the Iron Triangle?

scope

cost

time

contractor

place

Q55. Under which style of contract is the client, rather than the construction company, responsible for the design of a building?

EPC

Management Contracting

DBO

DBOO

Q56. What is the purpose of a Project Audit?
Answer Options:

To ensure the budget is managed effectively

To assess project requirements

To present findings to senior leadership

To review financial and performance status after completion

Q57. A local library is contracting a construction firm to design and build a new extension using a target costing method. Which of the following statements are true about this pricing mechanism? Select all that apply

any cost savings will be enjoyed by the library

this form of contract requires a collaborative relationship

a target cost will ensure the contractor works competitively against the library to ensure costs remain low and their profit margin remains high

the contractor is a price setter

Q58. Manchester City Council is planning to construct a new hospital using an EPC style of contract. Which two of the following are the greatest risks to the Council?

ensuring the specification is correct

setting an accurate budget before the contract is signed

accurately communicating the requirements to the contractor

including a time-is-of-the-essence clause within the contract

ensuring the contractor limits the use of subcontractors

Q59. A positive work culture can lead to which of the following benefits? Select all that apply

lower levels of redundancy

improved performance

increased productivity

higher levels of resistance to change

higher retention

Q60. Scenario (same as Question 16):
What type of power does the CFO have at Fin Inc?

positional power

expert power

personal power

negative power

Q61. Why might a Public Sector Organisation use a PPP style of contract to build a new police station? Select ALL that apply.

to monetise under-performing assets

due to not having the budget to complete the construction themselves

it is a legal requirement as it shows value for money

to ensure the highest quality of work

there is less administration involved

Q62. Which of the following statements about investment appraisal techniques are true? (Select all that apply.) Answer Options:

Non-discounted cash flow methods focus on profit maximization

Return on Capital Employed (ROCE) is expressed as a percentage of the value of assets used to generate profit

Payback analysis ignores cash flow after the business recovers its costs

Internal Rate of Return (IRR) can be used with Net Present Value (NPV)

Q63. What is the purpose of Cybernetic Control within Project Management?
Answer Options:

To assign resources

To reduce errors

To increase value

To monitor progress

Q64. Fred is comparing two possible projects that will last for different durations.
His company can only select one project due to financial constraints.
He needs a method to compare the financial benefits of both projects.
Q: Is a payback analysis a useful tool for Fred to use?
Answer Options:

Yes – this will account for the difference in duration of the two projects

No – this will not account for the difference in duration of the two projects

Yes – this will provide Fred with a rate of return that is useful to accurately forecast profits

No – there is no formula to calculate this, and a discount factor must be used

Q65. Petra is setting up a contract for a new construction project that must be robust with little flexibility. The contract stipulates that the client will bear the risk of unforeseen negative circumstances. Which type of contract is most suitable?

JCT

NEC

IMechE

FIDIC

Q66. 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.

Q67. Scenario:
Fin Inc is a consultancy organisation in the private sector, founded 10 years ago by CEO Geoff Davies, who runs a tight ship. Many employees are scared of Geoff, and there are rumours that he fires people for refusing overtime. Fin Inc is working with a new client on a shopping centre project led by the well-liked CFO. The client wants a flexible, collaborative contract with transparent cost-sharing.
What type of organisational structure does Fin Inc have?

power

role

task

person

Q68. Which of the following is true about Engineering, Procurement, and Construction (EPC) Contracts? (Select all that apply.) EPC contracts, commonly referred to as Turnkey Projects, are widely used in construction and infrastructure projects. These contracts require the contractor to design, procure materials, and construct the project to deliver a complete and operational facility to the client.
Answer Options:

The contractor is responsible for the design aspect of the construction

The contractor may operate the building for a certain period after completion

These contracts are commonly known as Turnkey Projects

These contracts are sometimes referred to as Design and Build Contracts

These contracts are used when forming a partnership between a private and public organization

Q69. According to Hofstede’s Cultural Dimensions, Individualism is when a person prioritises themselves over a group. Is this correct?

yes – individualism is seen as a selfish culture

yes – this is the opposite of collectivism

no – this is where an individual does not take risks that may have an adverse affect on themselves

no – individualism means accepting immediate gratification

Q70. Which of the following processes for managing change is the most passive?

coercion

bribery

persuasion

education

Q71. Jennifer is drafting a contract with a “termination for convenience” clause.
Q: What obligations should be included in this clause? (Select all that apply.)

The return of any advance payments

The destruction of confidential information

The smooth transition of services to a new supplier

Q72. Which elements define an organization’s culture? (Select all that apply.)

Beliefs and assumptions

Ways of interacting

The physical environment

Attitudes and customs

Q73. Paradigm Digital Services has strict office rules on branding, workspaces, and dress code.
Q: Which aspect of the Cultural Web does this describe?
Answer Options:

Organizational structure

Symbols

Control systems

Rituals

Power structure