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  1. Home
  2. CIPS
  3. Procurement and Supply Environments
  4. CIPS.L3M1.v2024-07-12.q32
  5. Question 1

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Question 1/32

A contract clause which entitles the buyer to hold back 5% of the final price for six months to en-sure everything is in order is known as a --------- clause:

Correct Answer: A
'Retention' - from the word 'retain', meaning to 'keep in place', 'hold back', 'keep possession of' something (Concise Oxford Dictionary, fifth edition) . In this case, 5% of the contract price.

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