Exam Code: L4M3
Exam Name: CIPS Commercial Contracting
Certification Provider: CIPS
Corresponding Certification: CIPS Certifications

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CIPS L4M3 Exam Syllabus Topics:

Topic	Details
Topic 1	Supplier Relationships (L4M6): Designed for Vendor Relationship Officers, this unit investigates supply chain relationship models and the tools needed to build strong partnerships. Learners explore competitive influences, team dynamics, stakeholder management, conflict resolution, and reasons partnerships fail. It emphasises trust, communication, and performance review processes.
Topic 2	Ethical and Responsible Sourcing (L4M4): This module targets Compliance Specialists and focuses on responsible supplier selection. It looks into sourcing options, financial evaluations, pre-contract activities, award criteria, and the importance of sustainability, governance, and ethical considerations, both domestically and internationally. Learners also explore audit mechanisms and environmental strategies.
Topic 3	Procurement and Supply in Practice (L4M8): For Procurement Specialists, this capstone module consolidates all other units, applying theory to real workplace settings. Learners demonstrate the full procurement cycle, from pre- to post-contract phases, supplier performance measurement, whole-life costing, and ESG (environmental, social, governance) practices across industries and sectors.
Topic 4	Scope and Influence of Procurement and Supply (L4M1): This module assesses the capabilities of Procurement Officers, focusing on how procurement adds value across organisations. It covers the procurement cycle, stakeholder roles, compliance across sectors, and how electronic systems support various procurement stages. Learners examine corporate structures, governance, and IT tools, developing insights into the strategic positioning of procurement functions.
Topic 5	Commercial Negotiation (L4M5): Tailored for Category Buyers, this section covers commercial negotiation techniques and preparation. It includes stakeholder dynamics, power balance, relationship impact, economic influences, and communication strategies. The module provides the foundation for conducting effective negotiations and evaluating outcomes for future improvements.

Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/commercial-contracting/

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CIPS Commercial Contracting Sample Questions:

Question #1

In order to reduce the internal cost of administration from the raising of high-volume, low-value orders such as office stationery, a procurement manager implements the use of call-off orders for such circumstances. Is this an acceptable thing to do?

A. Yes, the use of a blanket order cuts the staff administration time and paperwork that would be involved in numerous small orders
B. No, the procurement manager fears that they will lose staff and prefers to keep the administration costs high
C. Yes, as the procurement manager will be able to track more easily the volume of small orders and where the spend is occurring
D. No, as the role of the administration staff is to keep a check on the items being ordered and they would lose this ability

Reveal Solution Discussion 0

Correct Answer: A 🗳️