KF 1: Defining the project's VfM proposition

KF 1: Defining the project's VfM proposition

Business cases often did not clearly define the project VfM proposition to the rigour required for investment decision making.

Particular findings:

■  Average increase from business case cost estimate to AOC was of the order of 45-55%.

■  Business case assessment of an optimum delivery method often tended to 'default' to alliancing using a non-price selection approach for NOPs and did not consider a range of other delivery options.

■  In general, a robust program and budget was not evident from the business case stage.