The correct answer is C — Plans . PRINCE2 applies the plans practice throughout project delivery, including when individual work packages are defined and authorized. A work package establishes what products are to be delivered and the constraints and control arrangements governing their production.

In this scenario, the project manager agrees with the City Council purchasing team the products, time, and cost associated with preparing the contract. These are core planning elements. The work must be defined sufficiently so that the team understands what it is expected to produce, when it should be completed, what resources or expenditure are available, and the limits within which it is authorized to operate.

Option A, business case, concerns the project’s continuing investment justification and does not principally govern the detailed definition of products, time, and cost for a delegated work package. Option B, organization, defines roles, responsibilities, relationships, and the project-management structure. Although the relationship between project manager and team manager is relevant, the information explicitly being agreed here concerns planning. Option D, quality, would focus on product specifications, quality methods, acceptance arrangements, and quality control rather than the overall product/time/cost definition.

The work package therefore demonstrates application of the plans practice within controlling a stage.

PRINCE2 7 reference topics: Plans practice; controlling a stage; work packages; products; estimates; time and cost; delegated planning and control.

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