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CIPS Strategic Programme Leadership Sample Questions (Q57-Q62):

NEW QUESTION # 57
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:

A. These contracts are commonly known as Turnkey Projects
B. The contractor is responsible for the design aspect of the construction
C. These contracts are used when forming a partnership between a private and public organization
D. The contractor may operate the building for a certain period after completion
E. These contracts are sometimes referred to as Design and Build Contracts

Answer: A,B,E

Explanation:
The correct answers are 1, 3, and 4 (p.8). Option 2 is incorrect as it describes a DBO (Design-Build-Operate) contract rather than an EPC contract. Option 5 is incorrect because it describes a PPP (Public-Private Partnership) contract, not an EPC contract. [P.8]

NEW QUESTION # 58
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?

A. NEC
B. FIDIC
C. IMechE
D. JCT

Answer: B

Explanation:
FIDIC contracts are known for their robustness and low flexibility, placing risk on the client.

NEW QUESTION # 59
Skipped
Under what circumstances can Specific Performance be used to compensate an innocent party for a contractual breach? Select all that apply.

A. Money cannot remedy the situation, such as in the case of the sale of rare goods
B. When the innocent party wishes to avoid going to court
C. Adequate remedies are not available
D. A contract has a liquidated damages clause
E. The innocent party did not fulfil their contractual obligations under the contract

Answer: A,C

Explanation:
Specific performance is an alternative remedy to paying damages (i.e., money). It is used when money isn't going to help solve the situation-examples include the sale of land, rare or customized goods.
Option A is incorrect as specific performance can only be awarded if the injured party has "clean hands" and fulfilled all their obligations.
Option D is incorrect as specific performance is often decided by the court.
Option E is incorrect as specific performance would be used instead of liquidated damages.
See p.128-132 in the study guide.
Domain: 2.3

NEW QUESTION # 60
Jane works at a manufacturing organisation based in Europe. The organisation has recently decided to open a new factory in a South-East Asian country and Jane is to head up the project to launch the new factory. She has decided to fly out to the new site ahead of opening to do some research into the local culture and assess how the differences in culture may impact upon the company as a whole. The CFO of Jane's company thinks that this is a bad idea and a waste of money. Should Jane go?

A. yes - Jane should take advantage of the free trip to learn the language
B. yes - understanding the local culture will be important in incorporating the new site into the company
C. no - it is racist to assume that the culture is different
D. no - the CFO is correct that this would be a waste of money because Jane does not speak the local language

Answer: B

Explanation:
Understanding the local culture is crucial for integrating the new factory and ensuring the project's success.

NEW QUESTION # 61
KCJ Ltd is a public sector organisation planning five projects for the next financial year. Each project has a distinct cost estimation method and source of power for the project leader.
Your task is to match the correct cost estimation method and source of power to each project.
Project Descriptions
Project 1
Description: Budget estimation is calculated using an algorithm.
Project Lead's Power: Founder of the organisation.
Project 2
Description: The Head of R&D (PhD in Data Science) is using costing from similar past projects to determine the budget.
Project Lead's Power: Expertise in Data Science.
Project 3
Description: The project is led by a key stakeholder and involves creating a Bill of Materials. Costs are worked out item by item.
Project Lead's Power: Authority due to stakeholder influence.
Project 4
Description: The Project Leader has calculated the base cost, most likely cost, and worst-case scenario.
Project Lead's Power: Has the authority to cancel the project at any time.
Project 5
Description: The project leader is a well-liked Board Member who has selected a team he is comfortable with. He determined the budget based on his own research.
Project Lead's Power: Personal relationships with team members.

Answer:

Explanation:

NEW QUESTION # 62
......

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Jim West Jim West

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