Key principles:
◼ Evaluating options should be based on the objectives of the proposal. The objectives must be specified in terms of the result sought and not specified in terms of the services to be delivered.
◼ Consider the widest possible range of realistic options and resist the tendency to concentrate on past solutions.
◼ The base case may prove to be the preferred option adopted by Government because of investment priorities in other areas of service delivery.
◼ The technical requirements, risks and sustainability of the options should be understood and evaluated. Prevention and early intervention strategies should be considered. Critical assumptions or constraints should be documented.
◼ All business cases must include an economic appraisal (supported by a financial analysis) to determine the preferred options and a financial impact statement to evaluate the budget implications.
◼ Ensure the reason why the preferred option offers value for money is clear to any reader.
Application:
Preliminary business cases document:
◼ high-level objectives, identify alternatives and outline the relevant risks, sustainability issues and costs and benefits relevant to these alternatives and
◼ whether Part 3A - Major Infrastructure and Other Projects of the Environmental Planning and Assessment Act 1979 will be triggered.
Final business cases are to address the following requirements in full.