Finance and commercial management
PART 1: INVESTMENT APPRAISAL (25%) [500-700 WORDS]
Cost-Benefit Analysis (CBA) is a useful method that is normally used in conjunction with other financial analysis tools to create an effective and informed decision-making basis for construction organisations.
You are required to critically evaluate the suitability of Cost-Benefit Analysis as a decision-making tool for public sector infrastructure projects and discuss whether there are any alternative approaches/tools which are more appropriate for this type of project.
The following topics should be included in your report:
Definition of CBA
Why it is (or is not) a suitable decision-making tool for public infrastructure projects
Are there any alternative approaches for this type of project?
PART 2: NON-FINANCIAL CONSIDERATIONS (50%) [1800-2000 WORDS] Corporate governance refers to an operational framework in that companies are governed for a specific purpose. It provides transparency in terms of power structure and accountability. In the UK, a series of reviews on corporate governance has been conducted by the public sector; recommendations of which have been incorporated into several regulatory codes. Compliance with these codes can be considered to indicate the implementation of best corporate practices. However, it is believed that not all construction companies are committing to these additional measures. The question is how UK construction companies perform in corporate governance.
Therefore, for this assignment, you are required to discuss the importance of non-financial factors (and corporate social responsibility in particular) in the context of the UK construction industry.
The following topics should be included in your report:
How financial and non-financial factors are linked?
What are the main non-financial factors and why they are as (or more) important in the context of the construction industry? Explore the role of ethics and Triple Bottom Line, in particular.
How do construction companies report on non-financial factors?
Compare 5 companies from this list and discuss the main non-financial factors they deem important for their operation.
