QUESTION 2 (20 Marks) Care Construction, a leading construction company, has been awarded a…

QUESTION 2 (20 Marks)
Care Construction, a leading construction company, has been awarded a contract to build a new 10- kilometer highway connecting Meadowville and Rivertown. The project aims to improve transportation efficiency and support local economic development, with a timeline of 18 months and a budget of R25 million. Halfway through the project, the project manager, Jason, wants to assess the performance of stakeholders and make amends if needed, particularly to key suppliers and contractors. Advise Jason on the methods he can use to achieve this.
QUESTION 3 (20 Marks)
Lisa, a senior project manager at BuildTech Construction, has been tasked with selecting one of two high- value projects for execution. Due to limited resources, the company can only commit to one project at this time. Lisa must carefully evaluate both options based on cost and expected returns. Lisa is currently considering two mutually exclusive projects with equal useful lives. System SEN will meet all the organisations requirements, and system CAM, which costs more to implement, will have greater earnings potential because of its features. The table below gives the financial figures for each investment project. The cost of capital is 15%.
System SEN       System CAM
Initial Investment  R55 000       R70 000
Project useful life       5 years              5 years
Project cash inflows
Year
System SEN (R)
System CAM (R)
1
11 000
18 000
2
20 000
22 500
3
22 000
24 000
4
22 000
24 500
5
19 000
26 000
Which of these projects should be selected based on the Payback Period and Net Present Value (NPV) methods? Support your analysis with appropriate calculations.
QUESTION 4 (20 Marks)
Elite Builders, a mid-sized construction company, was awarded a contract to build a commercial office complex in an urban business district. The project was estimated to cost R15 million, with an expected completion timeline of 24 months. However, the actual costs escalated significantly, leading to budget overruns and delays. As an experienced project manager, critically discuss the primary reasons that could have contributed to inaccurate estimates.
QUESTION 5 (20 Marks)
To accommodate growing passenger traffic and improve international connectivity, the government of Coastal City has commissioned the construction of a new international airport terminal. The SkyLink International Airport expansion includes new terminal with a capacity of 15 million passengers annually and new cargo facilities to boost trade and logistics. From a project procurement context examine the factors that you need to take into consideration when planning for procurement