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IBES- DBA (MM) – MHR-MARCH’24


Practitioner Corporate Award CIPS


Module: Sourcing Essentials


Demonstrate the knowledge and understanding you have gained within the programme, together with your ability to research, analyse and problem solve a range of different procurement and supply related situations and challenges


Identify four sourcing approaches, and for each one, identify and explain how you apply them to a category of spend within your organisation.


MF4BE plans to develop the site to provide a mix of housing (including family housing, flats and sheltered accommodation), together with commercial uses in future and provide some open spaces.


MF4BE has purchased 3.75 hectares of the EoHS land from private landowners for £3.85 million per hectare to enable it to carry out this development.


You are required to propose two (2) housing schemes on the site for MF4BE to pick from. Decide on the total number of residential dwellings proposed for this site and the housing mix and types (e.g., 1 bedroom, 2 bedrooms etc).


Market information can be gleaned from a variety of databases e.g., "Rightmove" that will provide reasonable comparables. Cost information can be obtained from sources such as the Building Cost Information Service (BCIS) or Spon’s.


b. With the use of the information from (a) above, advise MF4BE on the viability of the two proposed schemes by carrying out capital budgeting using the Return of Capital Employed (ROCE), Payback Period (PP), Net Present Value (NPV)


a. Undertake breakeven analyses (charts included) based on only the development of houses on both proposed schemes. Based on the break even analyses, advise MF4BE on which of the twos chemes is the best.


You are required to assess the suitability of the chosen construction company or housebuilder, as a building contractor by preparing a report on the financial “health” of this company


The proposed development will take place on a site in a new neighbourhood called East of Harry Stoke (EoHS) near Stoke Gifford situated on the urban edge of north Bristol near the University of the West of England and close to the M32 and M4 motorways.


MF4BE, a leading local housing developer of the Southwest is considering a new housing development to be built under a quasi-social housing agreement with a national house-building firm.


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