Agencies must document the proposed benefits realisation strategy for implementing the project or program.
Benefits realisation is an established practice of ensuring that projects or programs produce the anticipated benefits claimed in the project's economic appraisal (section 4.3). It is also a method to address the changes that are necessary to realise benefits. The type and extent of benefits evaluated will be proportionate to the value and risk of the project. Benefits realisation is relevant to all categories of proposals.
Benefits realisation can manifest in a number of methodologies ranging from a post occupancy evaluation through to a benefits realisation plan or register. The methodology adopted by agencies must be fit for purpose.
The timing attached to evaluating the realisation of the benefits will depend on the expected timing attributable to the practical realisation of these benefits (either at occupation or when service delivery performance targets are expected to be achieved).
Where anticipated benefits include longer term savings for government or other benefits achieved through prevention and early intervention strategies, the benefits realisation strategy should include measures to evaluate the effectiveness of these strategies, and realise these savings.
Within the established governance arrangements, it is the responsibility of senior management to ensure the benefits can be measured and are capable of being delivered within specified timeframes. Agencies should establish regular reporting of the progress and achievement of the objectives and or benefits as part of the reporting to the project governance committee (section 5.2).