1. Project Detailed Business Case
Better Business Cases “Investing for change”
Project Detailed Business Case
Programme Strategic Assessment
Programme Business Case
Project Strategic Assessment
Indicative Business Case
Detailed Business Case
Implementation Business Case
Project Strategic Assessment
Single Stage Business Case

2. Project Detailed Business Case
Purpose
Revisit the case for change and the preferred
way forward
Determine the preferred option that optimises
value for money
Outline the potential deal and
assess affordability
Outline a plan for delivering the
proposed project

3. Project Detailed Business Case
Strategic
Strategic Case (Revisit)
Action 9: Revisit the indicative business case
Review the case for change and consider changes since the indicative business case was developed.
This revisits the strategic and economic cases for change.
Strategic case:
-Note the changes made to the underlying assumptions in the indicative business case.
-This could be due to conditions made as part of IBC, external stakeholders influencing the direction of the proposal, and/or other elements changing during the time elapsed since stage 1 approval .
Economic case:
-Review and refine earlier work on the long-list and the preferred way forward.
-If there have been any changes in the underlying assumptions since the initial options assessment, consider whether any of the short-list options are:
•likely to fail to deliver the investment objectives and critical success factors
•likely not to deliver sufficient benefits
•clearly impractical or unfeasible
•clearly inferior to another option
•likely to violate any of the constraints
•clearly too risky.
•All changes made to underlying assumptions should be noted within the opening section of the economic case.

4. Project Detailed Business Case
Economic
Project Detailed Business Case
Economic case
Action 10: Economic assessment of the short-listed options or preferred alternative procurement option
Action 11: Intangible benefits and costs
Action 12: Risk and uncertainty
Action 13: Preferred option and undertake sensitivity analysis
Complete the risk assessment:
-This is the overall process of risk identification, risk analysis/risk evaluation.
-Review the risks identified in action 5.
-Use AS/NZS ISO 31000:2009 and ISO/IEC for further guidance.
-Tailor the extent of risk analysis to the relative size, impacts and risks
Complete the quantitative risk analysis:
-This ensures risks, and their financial impact, are explicit to decision-makers.
-Financial and non-financial impacts must also be considered.
-Once the risk is known, contingency amounts can be identified.
-Quantitative risk analysis includes detailed sensitivity analysis and analysing the likely effect of scenarios.
-It involves assessing each probability & modeling how the total project will turn out.
-This will produce an estimated probability distribution of likely total costs.
--The risk modelling process involves - building the models, including distributions for uncertain inputs,
simulating outcome distributions, generating outcome graphs and tables, and reviewing and revision as necessary.
-This should only be performed by an accredited expert.
Stakeholders do the economic case thinking together
in one or more two hour workshops led by a facilitator.

5. Analysis of the short-listed options
Economic
Analysis of the short-listed options
Option 1: Do Nothing
Option 2: Do Minimum
Option 3: Preferred Minus
Option 4: Preferred Way Forward
Option 5: Preferred Plus
Appraisal Period (years) 20
Capital Costs ($m)
0.0
22.5
23.9
31.6
45.7
Whole of Life Costs ($m)
14.4
24.2
49.7
70.7
90.9
Cost-Benefit Analysis of monetary costs and benefits at the Public Sector Discount Rate
Present Value of Benefits ($m) 2 25 75
115
126
Present Value of Costs ($m) 7 23 40 52 73
Benefit Cost ratio
0.3:1
1.1:1
1.9:1
2.2:1
1.7:1
Net Present Value (NPV, $m)
(5) 35 63 53
Multi-Criteria Analysis ranking of intangible costs and benefits (if any)
Criteria 1 1 3 5
Criteria 2 4
Criteria 3
Preferred option
Yes

6. Project Detailed Business Case
Commercial case – Preparing for the Potential Deal
Action 14: Procurement strategy
Action 15: Service requirements
Action 16: Risk allocation
Action 17: Payment mechanisms
Action 18: Contractual and other issues
Financial case – Ascertaining Affordability and Funding Requirements
Action 19: The financial costing model
Commercial
Financial

7. Project Detailed Business Case
Management case – Planning for Successful Delivery
Action 20: Project management planning
Action 21: Change management planning
Action 22: Benefits management planning
Action 23: Risk management planning
Action 24: Post-project evaluation planning
Management

8. Detailed Business Case:
In summary
Detailed Business Case:
Revisit the case for change and the preferred
way forward
Determine the preferred option that optimises
value for money
Outline the potential deal and
assess affordability
Outline a plan for delivering the
proposed project