I hereby request guidelines on how to answer the attached questions. Case study: Sage business cases - NOC Project in dilemma: Plight of schedule control of an overseas EPC Project
PART A: MANAGING PROJECT COST [50 MARKS] Consider the case study: NOC Project in Dilemma: Plight of Schedule Control of an Overseas EPC Project, to answer the following questions: Considering the number of issues that CBMI experienced with the execution of the NOC project, your company has delegated you to the project site to assist Mr. Gao to recover the project schedule and to deliver the project within 18 months as planned. You are tasked to conduct the lessons learned to address the following: (a) Review the cost management plan for the NOC project. (10) (b) Evaluate the factors that can contribute to cost overruns for the NOC project and provide mitigations. (20) (c) Develop a cash flow structure applicable for cash projections for the duration of the NOC project by taking into consideration various cost elements and their interrelations. (10) (d) Evaluate the cost impact of quality, and health & safety of the NOC project. (10) PART B: MANAGING PROJECT FINANCE [50 MARKS] Consider the case study: NOC Project in Dilemma: Plight of Schedule Control of an Overseas EPC Project, to answer the following questions: a) Could this project be funded under a project finance model? Explain your answer and articulate the ideal conditions to support a project finance setting. (10) b) Outline project risks and explain how they were addressed. Comment on whether these mitigation measures were adequate and propose your own if the existing risk mitigation strategies are inadequate. Focus on the following risk exposures: Construction risk, Political Risk, Market (demand) risk, Exchange rate risk and Environmental risk. (25) c) The commercial manager stated that: "The buyer doesn't accept the format of our bank's issued guarantee letter. Mainland Chinese banks also don't allow open performance letters of guarantee. So, we've yet to reach agreement with the buyer or the relevant banks". What is the importance of this statement to the project? How do you propose that this dilemma is resolved [consider your answer in the context of (a) above]? (15) [TOTAL: 100 Marks]