Assignment 2500 words
PART 1: INVESTMENT APPRAISAL [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 nonfinancial 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 > https://www.theconstructionindex.co.uk/market-data/top-100-construction-companies/2020 and discuss the main non-financial factors
they deem important for their operation
