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Better Business Cases Practitioner Questions 21–25 (page: 6)

Updated On: 10-Feb-2026
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HOTSPOT
Using the Scenario, answer the following question about the actions taken when establishing the Economic Case within the Outline Business Case (OBC).

It is thought that funding for the new campus on the site of the Old Fire Station Headquarters could be achieved through a public private partnership (PPP). The size of the Pittville project is very similar to the recent PPP development of Marshgate High School, a school in a neighbouring part of the county.

Lines 1 to 5 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate option, from options A to E, that applies. Each option can be used once, more than once or not at all.





  1. See Explanation for the Answer.

Answer(s): A

Explanation:

Let's evaluate each assertion and reason to identify the appropriate options from A to E:

The assertion is that the PPP costs for Marshgate High are NOT relevant to estimating costs for the development of Pittville University. The reason given is that the Reference Project is used to provide an estimate of how much it will cost the public sector using procurement through conventional approaches. This reason does not logically support the assertion because using a reference project like Marshgate High could be relevant for cost estimation by comparison, so the option that applies here is B. True, BUT the reason does not explain the assertion.

The assertion is that the OBC must include the value for money assessment of the PPP schemes to support the Pittville University project details. The reason is that the procurement strategy for how the required services or works can best be procured should be determined in an Economic Appraisal. This reason supports the assertion because part of determining the procurement strategy involves assessing the value for money of different schemes, including PPP. Thus, the option here is A . True, AND the reason explains the assertion.

The assertion is that it would be appropriate for the PPP option to be carried forward to the shortlist, along with the 'BAU/status quo', do minimum and preferred option for the development of Pittville University. The reason is that any form of private project finance should be appraised using the Options Framework filter. This is a correct reason, as all financing options should be appraised to determine the best approach. Therefore, the option is A. True, AND the reason explains the assertion.

The assertion is that the data from the Marshgate High School project should be used to derive the optimism bias adjustment factor for the new Pittville University campus. The reason is that the Economic Appraisal should research accurate costings and review all contributory factors that could lead to cost and time over-runs. This reason supports the assertion because using data from similar projects can help in adjusting for optimism bias, which is part of ensuring accurate costing. Therefore, the correct option is A. True, AND the reason explains the assertion.

The assertion is that the bespoke technology cabin planned for Pittville University should be considered as a non-standard building project for deriving the optimism bias adjustment factor. The reason given is that each project type should be considered as a separate project for the purpose of applying an optimism bias adjustment factor. This reason supports the assertion because if the technology cabin is indeed a non-standard project, it should be evaluated on its own to ensure the adjustment factor is accurately applied. The correct option is A. True, AND the reason explains the assertion.



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Answer the following questions about the actions taken when preparing the Economic Case within the Full Business Case (FBC).

The Outline Business Case (OBC) was based on the following preferred way forward:



Decide whether the action taken represents an appropriate application of the Five Case Model for this project and select the response that supports your decision.

Since the OBC, the Government has established that students from the country do not have to pay university tuition fees. There has been a further 15% increase in interest for taking a Welsh language course at Pittville University.

Should the service scope and underlying assumptions be amended?

  1. No, because the underlying business need of falling 16-18-year-olds participation in education remains the same.
  2. No, because an increase in interest will NOT reduce the support for the preferred option from the Local Education Authority.
  3. Yes, because any changes to service requirements may require following-up throughout the whole case.
  4. Yes, because students are Pittville project stakeholders.

Answer(s): C



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The best and final offers have been returned for the delivery of the new campus. The preferred supplier was Piaffeco, which was the same supplier that delivered the neighbouring Marshgate High School.

Should Economic Appraisals be prepared for the best and final offers for the discarded service providers on the short list?

  1. No, because only the public sector comparator (PSC) should be updated in light of knowledge gained from the procurement.
  2. No, because updating the FBC with best and final offers should be done as part of the Commercial Case.
  3. Yes, because the reasons for rejecting potential service providers from the long list to the short list stage should be provided.
  4. Yes, because the FBC should provide Economic Appraisals for all options.

Answer(s): B



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The Director of Pittville University has resigned during the procurement process. As a result, the Deputy Director is now acting as Director. The other schools have now withdrawn their objections to Pittville University running the new campus. It is thought that the delivery approach could be revised so that Pittville University manages all 16-18-year-olds education and further cost reductions could be achieved. There is no option in the OBC that provides this delivery approach with the service solution of a new campus.

Should the preferred option be reviewed in the FBC? (Select one)

  1. No, because the lack of a Director of Pittville University would not affect a delivery approach involving Pittville University.
  2. No, because the preferred option should remain unchanged once selected at OBC.
  3. Yes, because the FBC must demonstrate that the preferred option offers better VFM than the other available options.
  4. Yes, because the FBC should consider the organization's strategy for managing contractual change.

Answer(s): C



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The Local Education Authority Director has agreed to be the Senior Responsible Owner. Therefore, they are ultimately responsible for the realization of benefits resulting from the Pittville project.

Should the responsibilities for the benefits realization arrangements be documented in the Economic Case?

  1. No, because the benefits realization arrangements are finalized in the Management Case.
  2. No, because the benefits realization takes place during the implementation and operational phases of the project.
  3. Yes, because the plan for the delivery of benefits should be documented within the benefits register and attached to the FB
  4. Yes, because changes to the benefits should be identified before the FBC Economic Appraisals.

Answer(s): A



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