CIPS L4M2 Defining Business Need · Free Practice Question Medium
Question 1
- A lower costs over the whole life of the asset
- B they are cheaper than standard contracts
- C the contract is verbal
- D there is more flexibility to change suppliers if something goes wrong
- E there is lower risk as a single company is accountable for all costs and services
Reveal correct answers
Correct answers: A, E
Explanation
The correct answers are 'lower costs over the whole life of the asset' and 'there is lower risk as a single company is accountable for all costs and services'. A downside to through-life contracts is there's LESS flexibility to change suppliers.
A through-life contract, often seen in sectors like defence, aerospace, and infrastructure, is a form of contracting where a single supplier is responsible for all aspects of a product's lifecycle, from design and development to operation and maintenance, and sometimes even disposal at the end of its life. This type of contract is especially prevalent in situations where the complexity, longevity, and operational criticality of the product are high.
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Discussion
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