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CIPS Exam L4M3 Topic 6 Question 4 Discussion
Actual exam question for
CIPS's
L4M3 exam
Question #: 4
Topic #: 6
[All L4M3 Questions]
Topic #: 6
Which of the following would be useful tools to incentivise supplier innovation over the duration of the contract?
1. Gainshare arrangement
2. Liquidated damages
3. Service credits
4. Fixed bonus payments
Suggested Answer:
C
Gainshare is an incentive for cost control
Liquidated damage is common type of disincentive for late completion
Service credit is a remedy for not achieving targets set out in an SLA
Fixed bonus payment is an incentive for early completion
LO 3, AC 3.3
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