CIPS Exam L5M3 Topic 1 Question 35 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 35
Topic #: 1

[All L5M3 Questions]

What is a Prime Contract?

AA contract between a buyer and main supplier

BA contract between an end customer and a company which has full responsibility for its performance

CA contract between a supplier and a subcontractor

DA contract between a public sector organisation and the taxpayer

Show Suggested Answer

Suggested Answer: B

'A contract between an end customer and a company which has full responsibility for its perfor-mance' is the correct answer. This is the definition of Prime Contract given on p. 47

by Tawna at Aug 23, 2024, 10:45 AM

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Marvel

2 months ago

Option C is just silly. A prime contract is between the customer and the main contractor, not subcontractors. What is this, amateur hour?

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Gearldine

2 months ago

I agree with Taryn. Option B describes a prime contract perfectly. Straight to the point.

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Oretha

1 months ago

Exactly, it's clear and direct.

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Mayra

1 months ago

It's the main contract that holds full responsibility for performance.

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Gracia

1 months ago

Yes, a prime contract is between an end customer and a company.

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Lavera

2 months ago

I agree, option B is the correct one.

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Kristel

3 months ago

Ha! Option D is clearly a joke answer. A prime contract has nothing to do with taxpayers. Unless the government is the customer, I guess.

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Mica

2 months ago

So, a prime contract is basically the main agreement between a buyer and supplier, right?

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Lai

2 months ago

Yeah, option D seems like a joke answer, it's definitely not about taxpayers.

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Margurite

2 months ago

I agree, it makes sense that the main supplier would have the prime contract.

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Sherron

2 months ago

I think it's option A, a contract between a buyer and main supplier.

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Daren

3 months ago

Hmm, I'm not so sure. Option A could also be a prime contract, where the buyer has the main supplier handle everything.

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Rolande

2 months ago

Option B) A contract between an end customer and a company which has full responsibility for its performance

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Norah

3 months ago

Option A) A contract between a buyer and main supplier

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Dorinda

3 months ago

Hmm, that makes sense too. It's important for the main supplier to have full responsibility.

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Taryn

3 months ago

Option B seems like the correct answer. A prime contract is when the end customer deals directly with the company responsible for the entire project.

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Daisy

2 months ago

User 2

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Glory

3 months ago

User 1

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Roselle

3 months ago

I disagree, I believe it's option B, a contract between an end customer and a company which has full responsibility for its performance.

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Dorinda

4 months ago

I think a Prime Contract is option A, a contract between a buyer and main supplier.

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