BETTER-BUSINESS-CASES-PRACTITIONER Practice Questions

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Here are the appropriate options for each line based on the assertions and reasons provided:

Option C: True (Assertion) / False (Reason) - It is appropriate that the contract includes price

variations dependent on the LEA's ability to downsize. However, the reason given is false because a

Commercial Case outlines how payments will be made but does not necessarily include contract

price variations based on downsizing capacity.

Option E: False (Assertion) / False (Reason) - The assertion is false because the duration of a

construction contract usually does not cover the lifetime of the asset; it covers the period of the

construction. The reason is also false because a Commercial Case explains the delivery timescales,

not necessarily the duration covering the asset's lifetime.

Option A: True (Assertion) / True (Reason) - It is true that the source of funding should be described

in the Commercial Case, and the reason is true because the Commercial Case does explain the

financial implications to an organization of a negotiated deal.

Option E: False (Assertion) / False (Reason) - The assertion is false; while it is important to identify

and cost individual risks, encouraging a service provider to take on risks is not the primary function of

the Commercial Case. The reason is also false because optimizing the transfer of risk is not the sole

purpose of a Commercial Case; it's about outlining the commercial viability and arrangements.

Option A: True (Assertion) / True (Reason) - It is true that the chosen service provider for the

construction should agree to the procurement strategy, and the reason is true because a Commercial

Case involves agreeing to the commercial transaction and procurement strategy.

Option A: True (Assertion) / True (Reason) - It is true that the Commercial Case should explain the

staff redistribution and redundancies as these are key elements of the commercial terms and

conditions of the project which will affect the financial and commercial implications of the scheme.

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For each statement in Column 1, we need to determine if it should be explained within the

Commercial Case or the Financial Case based on its content. Here are the answers:

Commercial Case - The use of the open procedure for considering tender responses is typically a part

of procurement strategy, which falls under the Commercial Case. It deals with how the project will be

delivered, the procurement strategy, and the contractual arrangements.

Commercial Case - The potential for opposition from staff when transferring units would also be

considered in the Commercial Case as it relates to stakeholder engagement and the management of

change, both of which are commercial considerations.

Financial Case - An operating surplus from hiring out sports facilities deals directly with financial

performance and sustainability, hence it would be included in the Financial Case.

Neither of the above - This statement about student satisfaction and attendance rates is more

related to the outcomes and benefits, which would typically be covered in the Economic Case or

Benefits Realization Plan rather than the Commercial or Financial Cases.

Financial Case - The net overall saving in the cost of contracts for cleaning is a financial consideration,

dealing with cost savings and expenditure, and therefore should be included in the Financial Case.

Financial Case - Structuring payments to incentivize delivery would be part of the payment

mechanism and financial structuring, which are addressed in the Financial Case.

Therefore, the answers from Column 2 would be:

A

A

B

C

B

B

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Let's evaluate each assertion and reason to identify the appropriate option for lines 1 to 5: Assertion: It is appropriate that the risk management strategy outlines a series of risk workshops. Reason: The risk management strategy outlines the methods used to identify and mitigate project risks. Appropriate Option: A (True, True, AND the reason explains the assertion) Assertion: It is appropriate that the risk management framework describes types of risk: business and service. Reason: The risk register shows the approach to managing project risks. Appropriate Option: B (True, True, BUT the reason does not explain the assertion) Assertion: It is appropriate that any risk which could impact workplace health and safety is to be escalated to the SRO. Reason: The risk management strategy shows details of who will be responsible for managing each risk. Appropriate Option: A (True, True, AND the reason explains the assertion) Assertion: It is appropriate for the details of individual risks to be included as part of the relevant Strategic, Economic or Commercial Case, rather than maintain a separate risk register. Reason: A risk register is only necessary where risks are NOT specified in the relevant case. Appropriate Option: E (False, False) Assertion: It is appropriate that each risk is to be assigned a probability and impact value. These should use the scales defined in the risk management strategy for the Western Area Learning Improvements programme. Reason: Planning for risk management involves putting arrangements in place for the on-going management of risk. Appropriate Option: A (True, True, AND the reason explains the assertion) These options were chosen based on the logical connection between the assertions and the reasons provided, considering the typical content of risk management strategies and frameworks in project and program management.

The assertion is that the conversion of the Old Fire Station Headquarters site should be considered as

a non-standard building project for deriving the optimism bias adjustment factor because non-

standard building projects involve significant planning and construction risks. This is True, and the

reason given is also True and explains the assertion because the presence of significant risks is

precisely why it would be categorized as non-standard and why an optimism bias adjustment would

be needed.

Correct Option: A

The assertion states that the optimism bias should be set midway between the upper and lower

works duration limit to reflect the identified timescale risks because optimism bias should be

reduced as each risk is mitigated. This is True; however, the reason is True but does not correctly

explain the assertion. Optimism bias is related to underestimation of risks, not their mitigation.

Correct Option: B

The assertion here is that opposition of staff and students to the move should be categorized as a

decant risk because a decant risk arises in accommodation projects related to moving staff and

clients. This is True, and the reason is True and directly explains why such opposition should be

considered a decant risk.

Correct Option: A

The assertion that risks to the timetable should be used as the basis for scenario analysis is True. The

reason given is that sensitivity analysis of Economic Appraisal findings should identify reasons for

variances in project assumptions and estimates, which is also True and provides a correct explanation

for using risks in scenario analysis.

Correct Option: A

The final assertion is that the preferred option must consider developing on the Pittville University

site to manage all 16-18 education because it has the highest net present social value. This assertion

is False because the preferred option should be the one with the best value for money overall,

considering both quantitative and qualitative benefits. The reason is also False because it incorrectly

suggests that the option with the highest net present social value automatically demonstrates the

best value for money, without consideration of costs or other factors.

Correct Option: E

Therefore, the correct options for each line are A, B, A, A, and E, respectively