CIPS Related Exams
L6M5 Exam

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.
Which culture type is task-oriented, structured, and uses logic for decisions?
Answer Options:
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.