CIMA Exam CIMAPRA19-P03-1 Topic 6 Question 62 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 62
Topic #: 6

W is a construction company which undertakes large projects for governments and other clients worldwide. Following extensive tendering processes, contracts are issued for successful tenders,and projects typically take three to five years to complete. Contracts are normally fixed-price and many have considerable penalty clauses.

Which of the following would beappropriate policies and controls for W to implement?

AUnsuccessful tenders should be analysedto establish the cause of them failing to be awarded the work and help to avoid future failures.

BEnsuring a consistent separation of duties between those involved in the preparation of tenders and those involved in the planning of projects.

CEnsuring that the minimum legal wage is paid to all workers on the construction sites.

DIn order to ensure the maximum chance of winning the contract,tendersalways commit W to completing the work at the lowest possible price and in the shortest possible time.

EContract terms should be worded precisely so that additional work is not deemed to form part of the contract.

FThe project steering committee and project board should receive regular project status reports.

Show Suggested Answer

Suggested Answer: B, C, E

by Olga at Dec 09, 2024, 04:20 PM

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Glen

12 days ago

I hope the project steering committee has snacks during those status meetings. Gotta keep the team's energy up for all those construction projects!

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Nadine

13 days ago

Regular project status updates are essential for effective oversight. Option F is a practical way to keep the leadership informed and on top of things.

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Delila

16 days ago

Good point. Precise contract wording is important to avoid ambiguity and disputes. Option E is a smart way to protect the company's interests.

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Cheryl

20 days ago

Hmm, Option D seems a bit risky. Committing to the absolute lowest price and shortest time might jeopardize quality and lead to penalties. I'd be cautious with that one.

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Art

1 months ago

Paying at least the legal minimum wage is a must. Option C is a no-brainer to ensure compliance and treat workers fairly.

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Art

1 months ago

A) Unsuccessful tenders should be analysed to establish the cause of them failing to be awarded the work and help to avoid future failures.

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Bettina

2 months ago

Absolutely, separation of duties is crucial to ensure proper checks and balances. Option B is a solid choice for maintaining control and accountability.

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