7.5  VfM Report contents

As a minimum, the VfM Report should contain:

•  the VfM proposition approved in the Business Case;

•  the Owner's VfM Statement;

•  an assessment of whether the agreed legal and commercial terms and conditions in the PAA provided for a best-in-market actual outcome;

•  an assessment of the VfM outcomes the Owner has achieved as a result of engaging its advisers;

•  a reconciliation between what was required (i.e. the Business Case and the Owner's VfM Statement) and what was delivered;

•  a reconciliation between the Owner's approved capital budget for the alliance with the Target Outturn Cost and the Actual Outtun Cost;

•  a full reconciliation of the Business Case Budget estimate with the actual total project cost to the Owner/government;

•  an assessment of the risks that eventuated on the project in comparison to expectations within the Business Case;

•  an account of the expenditure on risk provisions and contingencies;

•  the benefits delivered from innovation (with verification);

•  reporting on scope changes and their effect on capital expenditure and operational expenditure;

•  reporting on compliance issues and tracking of approvals;

•  comment on how well the alliance managed the movement of project budget and costs; and

•  lessons learnt.

Appendix B contains a VfM Report Template.