CIPS Exam L4M3 Topic 5 Question 32 Discussion

Actual exam question for CIPS's L4M3 exam

Question #: 32
Topic #: 5

[All L4M3 Questions]

Which of the following shall help the purchaser control the selection of tier 2 suppliers?

ASubcontracting clause

BWarranty clause

CGuarantee clause

DInsurance clause

Show Suggested Answer

Suggested Answer: A

When a party takes on a contractual obligation, they are legally required to perform the obligation.

That same contracting party is still entitled to subcontract out the work to another service provider, unless the contract:

- is a contract for personal services, such an employment contract

- contains an express term preventing subcontracting out the work, or an implied term

Subcontracting clauses are written to control whether the contractor is entitled to subcontract, and how purchaser shall control that subcontracting process.

- Subcontracting clauses (delegation of contractual obligations to third parties)

- CIPS study guide page 153-157

LO 3, AC 3.2

by Beth at Apr 20, 2024, 09:52 PM

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Marget

7 months ago

I see your point, The warranty clause could also be a factor in determining the selection of suppliers.

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Nohemi

7 months ago

But what about the warranty clause? Wouldn't that also help in controlling the selection of tier 2 suppliers?

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Veronika

7 months ago

I agree with The subcontracting clause allows the purchaser to have more control over who the tier 2 suppliers are.

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Marget

7 months ago

I think the subcontracting clause would help control the selection of tier 2 suppliers.

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Eliz

8 months ago

Yes, exactly.

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Farrah

8 months ago

So the subcontracting clause gives control over tier Donette supplier selection?

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Eliz

8 months ago

It allows the purchaser to approve or deny any tier Donette suppliers chosen by the main contractor.

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Donette

8 months ago

What does the subcontracting clause entail?

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Eliz

8 months ago

A) Subcontracting clause

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