How to Prepare For the CIPS L4M3 Exam

How to Prepare For the CIPS L4M3 Exam
2 min read
14 September 2022

CIPS L4M3 exam is a key certification for a commercial contractor. It requires you to have the relevant knowledge and skills for managing the contracting process. There are various preparation techniques you can use to prepare for the exam. These include studying for previous exams and using practice exams.

How to Prepare For the CIPS L4M3 Exam

Question: 1

The pricing arrangement in which markup is added into cost base to calculate the final price is known as...?

A. Price indices

B. Fixed Price approach

C. Cost plus pricing

D. Market based approach

Answer: C

Question: 2

In common law, which of the following documents is legally binding without the need for consideration?

A. Blanket order

B. One-off contract

C. Hire purchase agreement

D. Deed

Answer: D

Question: 3

Which of the following encourages social and environmental criteria in public sector contracting in the UK?

A. The Public Services Act

B. Supply and Appropriation Act


C. Social Action, Responsibility and Heroism Act

D. Children and Social Work Act

Answer: A

Question: 4

A company is considering entering a new market. Which of the following are the external factors that influence the difference between cost and price of this company? Select THREE that apply

A. Relative bargaining power of supplier and purchaser


B. Procurement policy

C. Process efficiency

D. Threat of substitution


E. Business strategy


F. Competitiveness of the market

Answer: A,D

Question: 5

Which of the following are reasons why a purchaser wants to embed a subcontracting clause into the main contract? Select TWO that apply:

A. To improve supply chain transparency


B. To condemn whole liabilities to subcontractors


C. To reduce the main contract complexity

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