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Cyril Engineering entered into a contract with Dojo Ltd for electrical engineering services to a power station.
The contract was successful for two years, but Cyril Engineering failed to fulfill obligations recently.
Q: What is this situation known as?
Answer Options:
Failure to meet contractual obligations is classified as Default (p.123).
Consequential Loss (A) refers to indirect financial loss due to contract failure.
Damages (B) are legal remedies for breaches.
Direct Loss (D) relates to immediate financial impact, but default is the correct term for a failure to meet obligations. [P.123]
A person who disrupts progress and hinders culture change holds which type of power?
Answer Options:
Negative Power (p.199) refers to individuals obstructing progress in an organization.
Dismissive (A) means ignoring opinions.
Contrary (B) and Pessimistic (C) do not refer to organizational influence. [P.199]
Why might a Public Sector Organisation use a PPP style of contract to build a new police station? Select ALL that apply.
PPP contracts are used when budgets are tight and to monetise under-performing assets. They are not mandated by law nor do they inherently ensure high quality or less administration.
What is the purpose of a Project Audit?
Answer Options:
A Project Audit (p.141) occurs post-completion to assess:
Financial health
Performance evaluation
Lessons learned
It is not a planning tool (Option B), nor is it for active budget management (A) or solely for senior leadership (C). [P.141]
A local library is contracting a construction firm to design and build a new extension using a target costing method. Which of the following statements are true about this pricing mechanism? Select all that apply
Target costing requires a collaborative relationship between the client and contractor. The other options do not accurately describe the target costing approach.
