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CIPS Strategic Programme Leadership Sample Questions (Q66-Q71):

NEW QUESTION # 66
What is the purpose of a Project Audit?
Answer Options:

A. To present findings to senior leadership
B. To assess project requirements
C. To review financial and performance status after completion
D. To ensure the budget is managed effectively

Answer: C

Explanation:
A Project Audit (p.141) occurs post-completion to assess:
Financial health
Performance evaluation
Lessons learned
It is not a planning tool (Option B), nor is it for active budget management (A) or solely for senior leadership (C). [P.141]

NEW QUESTION # 67
In a fixed lump sum contract, this pricing mechanism does not allow for any changes in price. Is this statement TRUE?
Fixed lump sum contracts are widely used in construction and infrastructure projects.
Answer Options:

A. No - price changes are allowed as it is impossible to predict prices concretely in advance
B. Yes - the price is fixed before the contract is signed
C. No - price variations are permitted if they are written into the contract
D. Yes - the contractor assumes all risks should they exceed the budget

Answer: C

Explanation:
Fixed Lump Sum contracts allow limited price changes under specific conditions (p.55), such as client variation requests, force majeure, or inflation adjustments. Firm Fixed Price contracts, however, do not allow any changes. [P.55]

NEW QUESTION # 68
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 # 69
When should a company use redundancy to implement change?
Answer Options:

A. When losing business and reducing workload
B. When expanding into new markets
C. When reducing overhead costs
D. When shifting organizational culture

Answer: D

Explanation:
Redundancy is a strategic tool for cultural change (p.208).
Options A & B relate to cost-cutting and downsizing, not change.
Option D involves expansion, not workforce reduction. [P.208]

NEW QUESTION # 70
XYZ is a large construction organization running five different projects. Each project has a specific type of contract and pricing mechanism.
Your task is to match the correct type of contract and pricing mechanism to each project.
Projects and Descriptions
Project 1
Description: Construction of an apartment block, where XYZ is responsible for both design and construction. Upon completion, ownership is transferred to the client.
Pricing Mechanism: Based on past experience of similar projects.
Project 2
Description: Facilities management for a 6-year period after construction. The budget is constantly adjusted due to industry volatility.
Pricing Mechanism: Budget changes continuously over time.
Project 3
Description: XYZ was involved from an early stage, but does not bear the design risk. The budget resets at the start of each new accounting period.
Pricing Mechanism: The budget is refreshed periodically.
Project 4
Description: XYZ is responsible for certain parts of the design and build, while another company handles other aspects. XYZ is paid upon milestone completion.
Pricing Mechanism: Payment is milestone-based.
Project 5
Description: Construction of a new toll bridge which will be operated by XYZ for the first 6 years post-construction. The pricing includes costs of raw materials, labor, and a profit margin.
Pricing Mechanism: Costs plus profit.

Answer:

Explanation:

NEW QUESTION # 71
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