Budget and Commercial Management Case Analysis 2022

Running Head: BUDGET & COMMERCIAL MANAGEMENT
Discussion Paper: Budget & Commercial Management
Name
Institutional Affiliation

BUDGET & COMMERCIAL MANAGEMENT
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Contents
1. Introduction.........................................................................................................................3
2. Business Case Analysis.......................................................................................................3
3. Requirements for providing funding for projects...............................................................4
4. Benefits and pitfalls of SVP................................................................................................5
4.1. Benefits of SPV...........................................................................................................5
4.2. Pitfalls of SPV.............................................................................................................6
5. Buyer-supplier management...............................................................................................7
6. Sustainability of the business projects................................................................................9
7. Tendering and Contracting framework critical analysis.....................................................9
8. The value and challenges of negotiations.........................................................................10
9. Procurement Management Process...................................................................................11
10. The specifications of the decision-making process.......................................................11
11. Conclusion.....................................................................................................................12
Reference..................................................................................................................................14

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Introduction
A business case is a structured paper detailing the investment claim in a construction
project or operational scheduling as well as some other resources. The business case should
be used to obtain management's support and approval to invest money, including resources
and workers. This determines project coordination and execution expectations, even though
the project's current productivity against the business case is monitored (Whelan & Fink,
2016). In this regard, financial funding is important to strengthen the finances of any project.
A financing arrangement where lenders primarily contribute to the source of profit of
the enterprise, rather than to the financial information of the lender, is defined as financial
funding. Under the law, a project finance scheme may also be considered as a Special
Purpose Vehicle (SPV). In fact, a financial scenario indicates the program has clearly
identified incentives for creditors. Above all, the success of a significant expenditure would
depend on the level to which the donor is endorsing the resulting impact on profits (Scuotto et
al. 2017). There are also several factors that need to be addressed and evaluated objectively
until all the plan is underway, and this essay highlights multiple such factors.
Business Case Analysis
A business case is usually supposed to prove convincingly that the proposal is
commercially viable, socially advantageous as it is fundable to the supporters and quite
closely managed in an external review. The project appraisal and economic argument for the
project or program depend on the sufficient degree of benefit appreciation. With much of the
project, network, or fund, the business argument places together the investment determination
and a more comprehensive evidence-based description of whether or not the expenditure is
supposed to deliver the predicted realistic and conceptual benefits to completion (Perotti,
2016). Project funding may come from a single investor, as well as multiple stakeholders.

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The operation of the project will range as per the preferences of the stakeholder in the
company and the preferred option for the implementation process. Generally, all the
proposals need a certain sort of financial assistance. In several situations, the availability of
resources (capital) is necessary for the project hat is expected to carry out. Programs may be
funded individually or collectively by loans, contracts, joint projects, or some other structure,
such as a private finance initiative (PFI) and public-private partnerships (PPP) (Bodiako et al.
2016).
Project finance generally funds organizations or industries in which projects may be
coordinated as a single organization, apart from their supporters. Sometimes, though, the
project is not financed according to the stakeholders' standards until it is expected to begin.
This is also debatable to find funds as the single factor that will help the project succeed. One
such example is of the Richmond Bank. Even though the Richmond Bank received very little
financial resources to fund the project, the project kept ongoing (Gardner & Wright, 2012).
One similar instance of the Seagull can also be stated in this regard. The new project by the
company is yet to be launched; however, the available financial means have not created
obstacles in the fulfillment of the project. This implies financing is critical but not just the
prime objective of establishing the correct course for the project (Gas Commission, 2010).
Often the organizations have a lot of money; however, the business path is not planned
correctly, and the business fails. Knowing the criteria for financing the project and thoroughly
meeting them is critical in this aspect.
Requirements for providing funding for projects
The project managers are assumed to be able to comprehend precisely what the
financing requirements are meant to be in project management, always when they start
operation. There are two types of budget planning requirements which involve the total
funding requirement along with the timeframe requirements. The minimum funding amount