Introduction
Cofold Construction Co (CC) is a listed construction company. Its head office is in the capital city, Lambdahasa, of the country of Omegland. Omegland has two neighbouring countries, Alphia and Betal. The countryside in both Alphia and Omegland is generally flat. In Betal, there is a large range of mountains (the Isnardi mountains) which separates its Eastern region from the rest of the country. All three countries use the same currency, the dollar ($).

The board of CC comprises 50% executive directors and 50% independent non-executive directors. The senior board members are:

Chairman                                    Imena Bhudia
Chief executive                            Burton Vadher
Senior non-executive director       Alex Larsen

CC’s core business is to provide support services, such as upgrade of electricity networks and road renewal and maintenance, in all three countries. However, it has also undertaken road construction projects of increasing size and complexity. Initially, CC carried out most of its major construction projects in Omegland, its biggest project there being a ring road around the city of Lambdahasa. CC has also started to develop a portfolio in Alphia, the biggest development there being a road between Phi City and Tautown, which was completed in 20X0.

To date, CC has not carried out any road construction projects in Betal. However, an opportunity has arisen for CC to tender for construction of a major road in Betal, which would be the biggest project which CC has undertaken to date.

The following exhibits provide information relevant to CC:

Exhibit 1: Extracts from the most recent annual report of CC.

Exhibit 2: Press release of the announcement of the new road in Betal.

Exhibit 3: Forecast revenues and costs for the construction of the new road in Betal.

Exhibit 4: Outline contents of the project initiation document (PID) and a summary of the operational issues section of the PID.

Exhibit 5: Transcript of an emergency meeting at CC’s head office.

Exhibit 6: Report of an interview with Burton Vadher in Omegland Daily News newspaper.

Question 2:

CC has been awarded the contract to build the road in Betal. It is now January 20X2 and planning for the project has started.

You are Jo Issa, the project manager for the construction of the road in Betal.

You have just been appointed project manager, as the original project manager left CC suddenly one month ago. Oliver Wesonga, the junior member of the project team, began to draft the project initiation document during the time when no-one was acting as project manager. He has prepared for your review the outline contents of the project initiation document, and a summary of the section in it on the operational issues affecting the project.

Required: 
Prepare a memo addressed to Oliver Wesonga which critically evaluates the outline contents and the summary of operational issues in the project initiation document which he has prepared and recommends improvements. (14 marks)

Professional skills marks are available for demonstrating scepticism skills in discussing shortcomings with the outline contents and summary of operational issues in the project initiation document and recommending improvements. (4 marks)