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Industry Best Practices Flashcards

7 cards from real CP3P practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Industry Best Practices flashcards as text

  1. A Public Sector Comparator (PSC) is primarily used to:

    Answer: Estimate the risk-adjusted cost of delivering the project through traditional public procurement

    The PSC provides a benchmark of risk-adjusted public delivery cost against which PPP bids are compared to assess value for money.

  2. Which is a best-practice approach to handling unsolicited proposals for PPPs?

    Answer: Subject them to a competitive process with clear rules, possibly granting the proponent a defined advantage

    Good practice requires competitive testing of unsolicited proposals, sometimes with a bonus or right to match, to ensure value for money and transparency.

  3. Why do best-practice frameworks recommend recording PPP fiscal commitments and contingent liabilities?

    Answer: To ensure affordability and manage long-term fiscal risk transparently

    Tracking direct and contingent liabilities, such as guarantees, prevents hidden fiscal exposure and supports affordability analysis.

  4. What is the main role of a central PPP unit in mature PPP programs?

    Answer: To provide guidance, standardization, quality control, and capacity building across agencies

    PPP units typically support policy, provide standardized documents and expertise, and review projects to ensure consistency and quality.

  5. Standardized PPP contract documents are considered good practice mainly because they:

    Answer: Reduce transaction costs and time while promoting consistent risk allocation

    Standardization lowers bid costs and timelines and gives the market predictable, consistent terms.

  6. A procuring authority wants to avoid bidders spending heavily on unrealistic proposals. Which best practice helps most?

    Answer: Prequalification to shortlist a limited number of capable bidders

    Prequalifying and shortlisting typically three to five capable bidders keeps competition meaningful while limiting wasted bid costs.

  7. Why should affordability be confirmed before launching a PPP procurement?

    Answer: Launching an unaffordable project wastes bidder and public resources and damages market confidence

    Confirming the authority can fund its payment obligations before tendering avoids cancellations that harm program credibility.