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CIPS Commercial Negotiation L4M5 Question # 71 Topic 8 Discussion

CIPS Commercial Negotiation L4M5 Question # 71 Topic 8 Discussion

L4M5 Exam Topic 8 Question 71 Discussion:
Question #: 71
Topic #: 8

A buyer is leading a negotiation with a supplier for plumbing parts for a large construction project with a five-year term. The buyer knows copper pipe costs will reduce after year two, while plastic component costs are forecast to rise significantly. In the negotiation, the buyer should seek to…


A.

Obtain a variable price for all components within the contract


B.

Fix the costs of all components for the full five years


C.

Obtain a variable cost for copper and fix the remaining cost components


D.

Fix the costs of the components within the contract after the third year


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