PRMG011 Project Development Management and Strategies Exam Answers

This document provides solutions to an exam on Project Development Management and Strategies (PRMG011). The exam covers topics such as feasibility studies for greenfield investments, expansion strategies in new markets, project portfolio management, benefit-cost analysis, project scoping, cultural heritage considerations in design, technology licensor engagement, logistics studies for power plants, preliminary design estimations, public-private financing, build-transfer-operate contracts, risk mitigation strategies, supply chain strategies, partnership models, and front-end planning phases. The solutions address various aspects of project development, including strategic decision-making, risk management, and stakeholder engagement.

PRMG011 Project Development Management and Strategies Exam
1. An industrial investor intends to finance a large industrial project as integration to his current
operations, however this project is considered as a green field investment. He intends to engage a
project developer to help him decide to go for this project. The project developer shall:
c. Perform feasibility study
The feasibility study covers many important points such as technical, legal, economic,
operational, and related to scheduling that would be helpful for reducing the risks in the project
and addressing probable issues of the project. The large industrial project would intake a huge
sum of money and the use of feasibility study would help in information development for
stakeholders like Environmental Analysts and Local Governments.
2. A Multi-national company is reviewing its expansion strategies, where some new projects are
on its implementation agenda. The Business Development Director considers new market
penetration is the best opportunity and pursuant to a recently performed market research as well.
As it is a new country market penetration, the expansion project plan shall be based on the
following resource type:
c. Team Leader
The business strategy matrix has shown that high attractiveness and strong competitive position
in a project is resulted when the project plan is based on impressive Leadership and leaders. The
efficient leaders would help in developing maximum investments, diversify the operations,
consolidate the position for focusing on the resources, and build the market share with the help
of near-term profits for penetrating into the new country market.

3. At the end of year planning season and in the Strategy meetings, Companies set the strategies
for next year portfolio of projects which will contribute to the development of their current
operations. A Company PMO, who is responsible of managing the projects portfolio, will:
d. All the above
The company PMO is responsible for defining and maintaining the process standards for the
organization by developing an effective framework for establishing the framework of standard
performance measure. They form and imply the project vision and mission and plan for project
portfolio and operations development.
4. The project developer can use benefit cost analysis method in:
d. A and B

Benefit cost analysis is the systematic approach that is helpful for estimating the strengths and
weaknesses of the project implementation alternatives and for comparing the benefits and costs
of the project to determine the project selection.
5. During the project scoping phase, the project developer role is to:
c. Develop design criteria
Project developer has several roles and responsibilities that requires excellent communication
skills, financial knowledge, and team work. The project developer helps in performing project
designing and development of activities as pert he customer’s requirements during the project
scoping phase.
6. In a residential complex project, the owner wants to establish this project with an objective of
maintaining the cultural heritage of the project proposed location in the first place. Therefore the
scope of the project designer must provide:
d. A feasible design that signify the project cultural objective.
The residential complex project has a requirement of maintaining the cultural heritage of the
project location. However, a construction project should be cost effective and feasible for the
development of the project operations. Hence, the scope of the project designer should be to
form feasible designs that signify the project cultural objective.
7. The project developer of large chemical complex intends to engage the technology licensor of
the manufacturing process for the basic engineering phase to get the process design package. He
intends to issue an EPC turnkey package of the project to secure risks related to the project

complexity of implementation. Therefore the contract with the lead engineering consultant shall
be delivering:
c. The project detailed design
The project detailed design would be formed by the lead engineering consultant for overcoming
the potential risks and applying the secured design of the EPC turnkey package of the project.
The lead engineering consultant would help in developing the design for the software package.
8. In the Coal fired power plants project, the logistics study of supply and handling the coal
which is the fuel of the power plant shall be addressed in the:
c. The commissioning and startup phase
The Coal fired power plants project require the use of coal as the fuel of the power plant and the
logistics study of supply and handling the coal should be done in the commissioning and startup
phase as during this phase of the project, the coal would be required to be used for running the
power plant.
9. To obtain an estimate with an accuracy of ± 40% for an oil and gas project, the progress of the
engineering works shall be within 10% - 20% of the overall engineering works. This phase of
design lifecycle is called:
c. Preliminary Design
The Preliminary Design Phase is characterized by the development of design specific solutions
that is based on the safety and design requirements. The progress limitation to 10% - 20% for
ensuring the estimation with an accuracy of ± 40% for an oil and gas project falls under the
Preliminary Design phase of the design lifecycle.

10. Two companies intend to jointly go through a real estate project deployment. The project
total cost is EGP 100,000,000. Each company will put EGP 30,000,000 as equity in this project
and will borrow the rest of the project budget from a governmental financial institution. The
financing structure of this project represents:
d. Public-Private Financing
The Public-Private Financing is a co-operative financial arrangement that is held between two or
more private and public sectors and lasts for longer period of time. The real estate project
deployment consists of joint venture of project companies with an equal investment of 30,000
and the Government financial institution investing 40,000
11. An investor intends to implement a power plant. The investor will be able to sell the
kilowatts of electricity to the consumers by managing the operation of the project. The electricity
will be delivered to the consumers through the electrical network of the municipality. The
investor will propose the project plan to the municipality as follows:
d. Build Transfer Operate
The Build Transfer Operate contract would be followed as it is a contract that involves the
development of the electricity and transferring the electricity developed with the help of State
Municipal Electricity Board.
12. A company intends to establish hi-tech manufacturing complex, it will buy the technology of
the manufacturing process from a technology provider in order to ensure that the complex will
operate with the desired results as indicated in the project business plan. After engineering

completion the company will execute the project by appointing turnkey contractor. The
execution approach followed by this company aim to mitigate the following risk:
d. Operational
The company wants to deploy the turnkey contractor for the execution phase as it would
decrease the probability of the operational risk for the company. The contractor would ensure
that the technology would work successfully for the company and the company would be liable
for the operational issues.
13. A Company specialized in the fabrication and erection of steel structure for heavy industry
and infrastructure projects. In an airport construction project, the company scope of fabricated
and erected steel is 23,000 tons. The project will be executed on 30 months. Hence the project
manager aimed to develop the supply strategy of steel from suppliers for this project as follows:
b. From Tactical to Strategic
The tactical to strategic supply strategy should be followed as the project requires the
development of the specialized fabrication and erection of steel structure for heavy industry and
infrastructure projects. The fabrication of 23,000 tons of steel would require the tactical strategy
development and then implementing the strategy for successful completion of the project.
14. Company A and Company B, where two package contractors in an offshore project. Their
packages were concurrently being executed under the electromechnical scope of this project.
Based on their performance, the project owner considers awarding the same scope to both
companies in phase 2 of this project. Both companies management hold a strategic meeting to
investigate potential partnership in such scope for future projects, starting from the offshore

project phase 2. Therefore, their partnership particularly in phase 2 of the offshore project is
considered as:
a. Basic Alliance and Partnership
The Basic Alliance and Partnership is formed when two or more parties forms an agreement of
working together on a definite objective while rest of the operations would remain independent.
It would allow company A and B to form collaboration of project phase 2 and future projects
without involving in other aspects of the project.
15. A large petrochemical developer aims to engage a reputable engineering contractor for a new
project as an expansion for the company operations in the petrochemical field. The developer
positions this project as a growth in the company portfolio and shareholder’s return. The
contracting strategy to engage the engineering contractor on this project shall be on:
b. Design, Build and Operate Basis
The Engineer contractor is responsible for the expansion of the company’s operations in the
petrochemical field and involved in growth of the company portfolio and shareholder’s return.
The contracting strategy developed with the Engineer contractor is Design, Build, and Operate
basis.
16. In a Cement plant project, the owner will engage a project developer for the front end
planning phase. As this phase implies, the developer will deliver the project feasibility study and
the conceptual design. However to complete the detailed scope the developer will engage an
engineering, which on its turn will provide:
d. All the above

The developer had to develop the project feasibility study and conceptual design in the front end
planning phase. However, for the detailed scope development, the developer would need to form
the project scope definition and boundaries, process design basis, and cost estimation and
schedule.
17. The PMO of an investment group considers to boost its performance in managing its
portfolio of projects, therefore it shall establish a model of developing their projects, however to
engage the operational team, who are responsible for facilities operations they need to
particularly work on:
d. All the above
The PMO wants to boost his performance in management of the project portfolios and establish a
model for the engagement of the operational team in the project. PMO would have to imply
cross-organizational alignment between functional groups within organization to align the
objectives throughout the project life cycle along with maintaining a top-to-bottom alignment
within an organization.
18. A Real Estate developer for a business offices park project will consider his history in
performing the new projects. The developer will follow the parametric forecasts to set the new
projects budget ceiling and time framework. Finally the developer will sell his project to the
clients, therefore his major concerns about project cost and time shall be:
d. Strategic Underestimation
Considering the good and bad points about Overestimation and Underestimation, the worse
condition of the two is Underestimation. The developer would have to take care of the issues that

can harm the project in long run. Hence, his major concern about the project project cost and
time would be Strategic Underestimation.