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

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?
B) Ensuring a consistent separation of duties between those involved in the preparation of tenders and those involved in the planning of projects. and C) Ensuring that the minimum legal wage is paid to all workers on the construction sites. and E) Contract terms should be worded precisely so that additional work is not deemed to form part of the contract.
A) Unsuccessful tenders should be analysedto establish the cause of them failing to be awarded the work and help to avoid future failures.
D) In 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.
F) The project steering committee and project board should receive regular project status reports.

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

Actual exam question for CIMA's CIMAPRA19-P03-1 exam
Question #: 62
Topic #: 6
[All CIMAPRA19-P03-1 Questions]

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?

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Suggested Answer: B, C, E

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

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Karan
7 months ago
Precise contract wording is key to avoid extra costs!
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Xochitl
7 months ago
Totally agree, separation of duties is crucial.
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Asha
7 months ago
Analyzing unsuccessful tenders is a must!
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Eloisa
8 months ago
Wait, are we really committing to the lowest price? Sounds risky!
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Laine
8 months ago
Paying minimum wage is just basic ethics, right?
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Izetta
8 months ago
I feel like option D might not be the best approach. Committing to the lowest price could lead to financial issues later on, especially with fixed-price contracts.
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Pearlie
8 months ago
Option E stands out to me because I recall a practice question about contract wording. Precise terms could really help avoid disputes over additional work.
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Jaime
8 months ago
I'm not entirely sure, but I think separating duties in tender preparation and project planning, as mentioned in option B, is crucial for avoiding conflicts of interest.
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Annmarie
9 months ago
I remember studying the importance of analyzing unsuccessful tenders, so option A seems like a good policy to implement. It could help improve future bids.
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Abel
9 months ago
I think I've got a handle on this. The key is identifying policies and controls that will help W manage the risks associated with their long-term, fixed-price projects. Choices A, B, and F look like they could be effective in addressing those challenges. I'll make sure to explain my reasoning carefully.
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Melina
9 months ago
This is a tricky one. I feel like I'm missing some key information to really nail down the best answers. Maybe I should focus on the core principles of good internal controls, like segregation of duties and oversight. But I'm not 100% confident in my approach here.
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Leota
9 months ago
Okay, I've got a strategy here. I'm going to look for policies and controls that address the risks mentioned, like unsuccessful tenders, separation of duties, and managing project timelines and costs. Choices B, E, and F seem like they could be good options.
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Samira
9 months ago
Hmm, I'm a bit unsure about this one. There are a lot of options to choose from, and I'm not totally sure which ones would be the most appropriate. I'll need to carefully read through each choice and think about how they relate to the specific challenges faced by W.
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Corinne
9 months ago
This question seems straightforward - it's asking about appropriate policies and controls for a construction company like W. I think the key is to focus on the issues mentioned in the scenario, like the long project timelines, fixed-price contracts, and penalty clauses.
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Glen
1 year 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
1 year 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
1 year 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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Precious
1 year ago
F) The project steering committee and project board should receive regular project status reports.
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Alyce
1 year ago
E) Contract terms should be worded precisely so that additional work is not deemed to form part of the contract.
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Iluminada
1 year ago
B) Ensuring a consistent separation of duties between those involved in the preparation of tenders and those involved in the planning of projects.
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Justine
1 year 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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Cheryl
1 year 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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Dong
1 year ago
E) Contract terms should be worded precisely so that additional work is not deemed to form part of the contract.
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Matilda
1 year ago
B) Ensuring a consistent separation of duties between those involved in the preparation of tenders and those involved in the planning of projects.
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Yuonne
1 year 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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Art
1 year 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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Gertude
1 year ago
F) The project steering committee and project board should receive regular project status reports.
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Minna
1 year ago
C) Ensuring that the minimum legal wage is paid to all workers on the construction sites.
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Shanda
1 year ago
B) Ensuring a consistent separation of duties between those involved in the preparation of tenders and those involved in the planning of projects.
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Art
1 year 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
1 year 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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Valentin
1 year ago
User 2: Definitely, it helps prevent any conflicts of interest.
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Cyril
1 year ago
User 1: I agree, separation of duties is key for transparency.
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Avery
1 year ago
I believe option B is also essential to maintain transparency and prevent conflicts of interest.
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Daron
1 year ago
Analyzing unsuccessful tenders is a great idea to improve future bids. I like how option A focuses on understanding the reasons behind the failures.
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Avery
1 year ago
I agree with you, Vernice. It's crucial to learn from past mistakes.
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Vernice
1 year ago
I think option A is important to analyze why tenders fail.
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