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| Vendor: | CIPS |
|---|---|
| Exam Code: | L3M3 |
| Exam Name: | Contract Administration |
| Exam Questions: | 90 |
| Last Updated: | October 5, 2026 |
| Related Certifications: | Level 3 Advanced Certificate in Procurement and Supply Operations |
| Exam Tags: |
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When negotiating, it is highly desirable to have both a:
Best alternative to a negotiated agreement; and a zone of potential agreement.
The other terms shown are just fictions.
How many 'Whys'?
'Five-Why Analysis' or 'Why-Why Analysis' is an approach to trying to determine the cause of an event. It can be used to link to / in conjunction with an Ishikawa diagram. The principle is that one repeatedly (as often as necessary, not necessarily limited to five) asks 'why?', and eventually an un-derlying reason will emerge, which if addressed effectively, will successfully resolve the problem. This is something which can often be observed naturally in small children. 'Why, Daddy?'. 'But why, Daddy?. Etc. (Or Mummy)
Contracts published by third party experts such as trade associations or professional bodies, widely regarded as favouring neither buyer nor seller, are called:
These are 'model form' contracts. Industry standard templates eg NEC ('New Engineering Con-tract'); or FIDIC model form contracts. You will find some examples produced by CIPS on the CIPS website eg for IT procurements.
In this course, the acronym 'NDA' stands for:
Non-disclosure agreement, also known as a confidentiality agreement.
Which of the following are barriers to trade?
All of those shown are barriers to trade.
Quotas place a numerical limit on what may be imported; embargoes ban certain goods (for exam-ple, no goods originating in Israel may be imported); duties discourage imports; subsidies of local industries undercut foreign competitors (have a search for stories on large airlines being subsidised in various countries, commonly for reasons of prestige); complex customs procedures make import-ing foreign goods difficult (great examples involving France); exchange controls limit the amount of a currency which can be converted into another currency, limiting payment possibilities for imports. Etc.
Of course, most countries using any of these mechanisms repeatedly eulogise on the benefits of free trade....
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