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Better Business Cases Practitioner Questions 26–30 (page: 7)

Updated On: 10-Feb-2026
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Answer the following questions about the content of the Commercial Case and the Financial Case for the Pittville project.

Which detail should be explained in the Commercial Case?

  1. How charges for the preferred service provider's offer have been modelled, including the resultant benefits.
  2. Capital and revenue implications of the resultant deal, including any costs falling to the organization.
  3. Net effect on the organization's charges (prices), if any.
  4. Service streams and outputs being contracted for.

Answer(s): D



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Which detail should be explained in the Commercial Case?

  1. Implementation timescales agreed for delivery.
  2. Impact on the organization's income and expenditure account.
  3. Impact on the organization's balance sheet.
  4. Overall affordability and funding arrangements for the deal.

Answer(s): A



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Which detail should be explained in the Financial Case?

  1. Allocation of risk negotiated between the organization and the preferred service provider.
  2. Written confirmation of funding arrangements for the deal from the organization's commissioners.
  3. Underpinning method of payment for services and outputs.
  4. Type of contract used and key contractual issues.

Answer(s): B



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Which detail should be explained in the Financial Case?

  1. Accountancy treatment of the negotiated deal.
  2. Explanation of any personnel implications.
  3. Contingency arrangement for overspends.
  4. Payment premiums for risk transfer.

Answer(s): A



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HOTSPOT
Answer the following questions about preparing for the potential deal for the

Pittville project.

Column 1 contains information about the Pittville project. For each entry in Column

1, select from Column 2 the Action within the Five Case Model that should use this information. Each selection from Column 2 can be used once, more than once or not at all.



  1. See Explanation for the Answer.

Answer(s): A

Explanation:

For each entry in Column 1 related to the Pittville project, I'll match the action from Column 2 of the Five Case Model that should use this information:

"There should be a break clause allowing either party to give two months written notice to terminate the agreement after a minimum of six months." ­ This information pertains to the

A . Determine procurement strategy because it discusses terms that would be part of the procurement agreements and strategies.

"The open procedure is to be used when considering all tender responses for construction of the new campus." ­ This is also related to A. Determine procurement strategy as it specifies the type of procurement procedure to be used in the tendering process.

"The Contractor will bear responsibility for any failure of construction quality under the Contract." ­ This information is part of C. Outline potential risk apportionment because it deals with the allocation of risk regarding construction quality.

"All materials used by the Contractor should comply with EU construction standards." ­ This detail is aligned with E. Ascertain contractual issues and accountancy treatment, as compliance with standards has contractual implications and may affect the accountancy treatment in terms of capitalizing the construction costs.



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