SIMPLIFIED
BUSINESS
CASE
GUIDELINES
CONTENTS
1 INTRODUCTION
1.1 PURPOSE OF THIS DOCUMENT.......................................................................................................... 1
1.2 ALIGNMENT WITH EXISTING GUIDANCE ..................................................................................... 1
1.3 PURPOSE OF THE BUSINESS CASE ................................................................................................ 1
1.4 GETTING STARTED: PLANNING FOR AN EFFECTIVE BUSINESS CASE........................ 1
1.4.1 CORE GUIDING PRINCIPLES ................................................................................................................ 2
1.4.2 BUILDING YOUR TEAM AND SECURING STAKEHOLDER SUPPORT.............................. 2
1.4.3 IDENTIFYING DATA REQUIREMENTS............................................................................................... 3
1.4.4 PURPOSE OF THE BUSINESS CASE.................................................................................................. 3
1.4.5 REFRESHING THE BUSINESS CASE.................................................................................................. 4
2 PREPARING THE CASE FOR CHANGE 6
2.1 BACKGROUND............................................................................................................................................. . 6
2.2 RATIONALE FOR INVESTMENT........................................................................................................... 6
2.3 STRATEGIC ALIGNMENT ........................................................................................................................ 7
2.4 EXPECTED OUTCOMES .......................................................................................................................... 7
2.5 STAKEHOLDER & COMMUNITY SUPPORT .................................................................................. . 7
2.6 CASE FOR CHANGE CHECKLIST......................................................................................................... 8
3 ANALYSIS OF THE PROPOSAL 10
3.1 PROPOSAL OBJECTIVES & INDICATORS....................................................................................... 10
3.2 DEFINING A BASE CASE ........................................................................................................................ 10
3.3 OTHER OPTIONS CONSIDERED ......................................................................................................... 10
3.4 INFORMATION ABOUT THE PROPOSAL ........................................................................................ 11
3.5 PROJECTED COSTS .................................................................................................................................. 12
3.6 COST BENEFIT ANALYSIS ..................................................................................................................... 13
3.7 FINANCIAL APPRAISAL ......................................................................................................................... 15
3.8 PROPOSED FUNDING .............................................................................................................................. 15
3.9 FINANCIAL HEALTH & STATUS............................................................................................................ 16
3.10 ANALYSIS OF THE PROPOSAL CHECKLIST ................................................................................ 16
4 PREPARING THE IMPLEMENTATION CASE 18
4.1 PROGRAM & MILESTONES.................................................................................................................... 18
4.2 GOVERNANCE.............................................................................................................................................. 18
4.3 KEY RISKS ...................................................................................................................................................... 18
4.4 LEGISLATIVE, REGULATORY ISSUES & APPROVALS ............................................................. 19
4.5 RISK MANAGEMENT................................................................................................................................... 20
4.6 ASSET MANAGEMENT & OPERATIONS........................................................................................... 20
4.7 IMPLEMENTATION CHECKLIST............................................................................................................. 20
ATTACHMENT A - BUSINESS CASE TEMPLATE
OVERVIEW
These business case guidelines for regional
infrastructure proposals simplify the
requirements set out in longer, more technical
NSW Government guidelines. It is intended
to provide a more accessible explanation of
the guidelines to assist applicants prepare
eective business cases.
The first section of these guidelines outline
why business cases are required and key
business case principles. The remaining
sections provide practical advice on key
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business case components for applicants
to demonstrate how their proposals align
with Government priorities, provide value
for money and can be delivered with an
acceptable level of risk.
The following map outlines the key
components considered in these guidelines.
Key Sections Key Considerations
Planning for a Business Case (Section 2)
Planning for a Business Case
Preparing the case for change
(Section 1 )
Analysing the proposal
(Section 2)
Preparing for implementation
(Section 3)
Purpose of these
guidelines
Rationale for
investment
Options
considered
Programs and
milestones
Purpose of the
Business Case
Strategic
Alignment
Scope
Governance
Getting
Started
Stakeholder and
Community Support
Cost, Benefits and
Funding
Risks
Figure 1: Document Map
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SECTION 1:
INTRODUCTION
Given limited resources and competing
requests for funding, the NSW Government
prioritises proposals that align with its strategic
priorities, oer good value for money and have
the capacity to be managed and delivered
eectively.
An eective business case:
• Shows the best way of meeting a specified
set of objectives to resolve a set of identified
problems
• Informs whether an investment is warranted
• Demonstrates that key risks have been
carefully considered and addressed
• Demonstrates the applicant’s capability
Business cases play an important role in
demonstrating the merit and intended
execution of proposed investments.
Applications for NSW Government
infrastructure grants typically require a
business case.
However, preparing a business case may be a
new process for many applicants, leaving them
with the task of preparing unfamiliar paperwork
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These guidelines are intended to supplement the
general principles of existing NSW Government
business case guidance. Specifically, this
document has been prepared to align with the
principles set out in:
• NSW Government Guidelines for Business
Cases (TPP08-05)
within potentially challenging time constraints
of a grants funding process.
These simplified business case guidelines and
supporting template are intended to guide
applicants with limited experience in preparing
business cases. Councils and other community
organisations seeking NSW Government
funding for regional infrastructure initiatives
are most likely to benefit from using these
guidelines, though it may also be applicable
to a broader range of stakeholders and
circumstances.
1.1 PURPOSE OF THIS DOCUMENT
1.2 ALIGNMENT WITH EXISTING GUIDANCE
1.3 PURPOSE OF THE BUSINESS CASE
and capacity to manage and deliver the
proposal.
The business case process provides a
methodological approach for applicants to
outline how their proposals align with the
following three areas:
Section 2: The Case for Change
Section 3: Analysis of the Proposal
Section 4: Implementation
Attachment A of these guidelines encompasses
a template for applicants to base the
development of their business cases.
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• Infrastructure NSW’s Infrastructure Investor
Assurance Framework
• NSW Gateway Policy (TPP17-01)
• NSW Government Guidelines for Cost-
Benefit Analysis (TPP17-03).
Applicants may wish to familiarise themselves
with these more detailed guidelines.
Set to scale
Business case development should
be approached flexibly, so that
the cost and eort of the task is
proportionate to the resources
and risks of the proposal. As a
rule, larger, riskier, more complex
investments need more time and
eort applied in developing the
business case.
Substance over style
While well-presented documents
are welcome, the focus should
be on ensuring that
submissions are suciently
detailed, complete and
without errors.
Evidence based
Submissions should be
accompanied with the
underlying assessments,
reference and written
evidence base to support
estimates and
assertions.
Succinct
Business cases should be
succinct and cater for a
range of audiences. Applicants
can provide attachments
to the submission to
support their business
case.
Show and tell:
Applicants should showcase
the benefits of their proposal
while demonstrating a clear
understanding and control of key
risks and issues.
Applicants should follow five core guiding principles in preparing
the components of their business cases:
1.4 GETTING STARTED: PLANNING FOR AN EFFECTIVE BUSINESS CASE
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1.4.1 GUIDING PRINCIPLES
Before business case drafting begins, some
planning is required. The main objective of
the planning is to ensure the development
process takes account of the information
and skill inputs needed and who should
contribute to the content of each section.
The first step is to review who within a Council
or organisation is best placed to contribute
to the individual sections and subsections
of the business case. For example, while
the business case may be managed within
a Council’s community strategic planning
team, significant input may be required
from the finance, infrastructure and services
teams. There may also be benefit in taking
advantage of a regional approach, and
At a minimum, applicants will need to provide
the following supporting documentation:
• Proposal schedule/timeline
• Scope of works (or similar documentation)
• Capital expenditure quotes/estimates
from service/product suppliers
• Procurement plan
• Risk management plan and risk register.
Additional documentation may be provided
to support an applicant’s case. Examples
of additional documentation that may be
submitted (although not limited to) include:
• Evidence of consultation with
stakeholders and the community
• Maps, pictures and diagrams
• Stakeholder and communications plan
• Governance plan
• Cost plan.
Applicants may consider using external
advisors to fill some information gaps or
manage their business case development
process. Before engaging an external advisor,
it is recommended that applicants seek
advice from the Department of Premier and
Cabinet’s (‘the Department’) Regional NSW
Group to discuss options to develop their
business cases in a cost-eective manner.
harnessing the specific experience and
expertise of neighbouring councils.
The applicant should consider which
external stakeholders could help support
the proposal. The support provided could
either be key information inputs, and /
or general endorsement of the merit of
the proposal. These stakeholders could
include relevant NSW and Commonwealth
Government agencies, neighbouring or
local councils, Members of Parliament,
Destination Networks, Joint Organisations
and independent experts.
The Regional NSW Group is also available as
a general resource for advice on eligibility,
how to apply for funds and technical
questions relating to preparing business
cases. Applicants may contact the Regional
NSW Group at:
www
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Website: www.nsw.gov.au/writingabusinesscase
Email: regionalnsw[email protected]w.gov.au
Telephone: 1300 679 673
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1.4.2 BUILDING YOUR TEAM AND SECURING STAKEHOLDER SUPPORT
1.4.3 BUILDING YOUR TEAM AND SECURING STAKEHOLDER SUPPORT
1.4.4 PURPOSE OF THE BUSINESS CASE
Business cases are best viewed as a ‘live’
document. Best practice will see business
cases being reviewed, and where appropriate,
revised over the life of the proposal to
reflect feedback from the Department, from
stakeholders or new information.
While the business case process focuses on
investment due diligence, applicants may
need to consider additional due diligence for
the latter phases of the proposal lifecycle,
including engineering and environmental
assessments, commissioning and benefits
realisation.
1.4.5 REFRESHING AND REVISING YOUR BUSINESS CASE
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SECTION 2:
PREPARING
THE CASE FOR
CHANGE
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SECTION 2:
PREPARING THE CASE FOR
CHANGE
Applicants must demonstrate that there is a clear need for the proposal and that the proposal delivers
on strategic local, regional and / or State priorities.
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A background section should be included to
improve the reviewers’ understanding of the
proposal.
This section should explain the need for
investment. This may include but is not limited
to factors such as:
• Need to provide new facilities
• Need to refurbish or improve existing
facilities
• Need to deliver improved local economic
and social infrastructure
• Need to deliver improved regional voice
and data connectivity
• Need to improve participation and
performance in sports at all levels
• Need to improve arts and cultural
infrastructure
• Opportunity to activate economic potential
• Opportunity revitalise local communities
and economies
• Opportunity to spur job creation in regional
areas
• Opportunity to grow regional centres
• Opportunity to improve economic growth
and productivity.
This may include proposals to manage future
anticipated issues or emerging opportunities
(e.g. through new technologies).
It is important to link the problem and the
proposed solution by stating how and to what
extent the proposal will contribute to meeting
the stated objectives.
Applicants need to articulate the problems that need resolution
and how the problems link to the identified objectives and
expected outcomes of the proposal.
The information provided by applicants
to establish a clear link between problems
and the proposed solution may be
summarised in an Investment Logic Map
or similar visual representation.
2.1 BACKGROUND
2.2 RATIONALE FOR INVESTMENT
6
Applicants should document the key outcomes
from their proposal.
Outcomes should be described in quantitative
terms where possible (e.g. a 5% increase in
participation rates). Where they are not able
to be quantified, these should be described in
qualitative terms. In these instances, applicants
may wish to consider alternative approaches to
present their case including:
• Desktop reviews
• Literature reviews
• Case studies
• Historical trends
• Data analysis.
Applicants should also identify parties that will
be impacted by the proposal. Beneficiaries may
include the applicant, government agencies,
users or recipients or the general community.
Proposals may also serve to deliver wider
economic impacts to an industry sector or to
the regional economy.
In this section, applicants need to outline what the anticipated
outcomes are and who the beneficiaries from the investment
will be.
Proposals may involve or impact a broad range
of stakeholders including user/recipients,
businesses, the community and government
agencies. Applicants need to demonstrate
broad support for their proposals and actively
manage potential negative spill over impacts
and delays.
Identifying and understanding the impacts
is important to building community support.
Applicants should identify key stakeholders as
early as possible and document:
• Consultation that has been undertaken with
stakeholders
• Issues, impacts and concerns that have been
included or excluded from the proposal
scope
• How the proposal responds to these issues,
impacts and concerns.
In this section, applicants should demonstrate that they have
broad stakeholder and community support for the proposal,
that stakeholder/community concerns have been identified
and mitigations to address these are in place.
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Applicants need to consider how well their
proposal aligns with priorities, actions,
directions and strategies outlined in prevailing
State, regional and local government
documents.
Examples of these documents include:
• Premier’s/State Priorities
• State Infrastructure Strategy
• NSW Government agency strategies and
plans
• Regional plans prepared by the NSW
Department of Planning and Environment
• Regional Economic Development Strategies
• Local government strategies
• Asset management plans.
Proposals should contribute to the delivery of State, regional
or local government priorities as well as the applicant’s priori-
ties. Proposals with a stronger alignment to these priorities are
more likely to receive a higher priority.
2.3 STRATEGIC ALIGNMENT
2.4 EXPECTED OUTCOMES
2.5 STAKEHOLDER & COMMUNITY SUPPORT
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A proposal with a strong case for change will
be able to demonstrate:
• That it resolves a clear set of problems and
issues.
• That if is consistent with prevailing State,
regional and local government plans
• The outcomes are well understood
• That it has broad stakeholder and
community support.
In this section, applicants should demonstrate that they have
broad stakeholder and community support for the proposal,
that stakeholder/community concerns have been identified and
mitigations to address these are in place.
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2.6 CASE FOR CHANGE CHECKLIST
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SECTION 3:
ANALYSIS OF
THE PROPOSAL
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SECTION 3: ANALYSIS OF
THE PROPOSAL
Applicants must demonstrate that their proposal oers the best value for money and is aordable con-
sidering all available alternatives.
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The objectives describe the desired changes
to be brought about by the proposal. These
objectives should be directly linked to the
problems or opportunities identified by the
applicant.
Applicants should identify success indicators
for each identified objective to be able
to clearly demonstrate the value of their
investment to the Department and proposal
stakeholders. Applicants should ensure their
reporting arrangements allow for the tracking
and reporting of these indicators.
Applicants should identify what the proposal aims to achieve.
These objectives should be directly linked to the problems or
opportunities identified by the applicant.
The base case allows an assessment of relative
costs and benefits of the preferred solution (as
well as other alternative solutions).
The base case is typically a ‘status quo’
scenario. In many instances, this will be a ‘do
nothing’ scenario. In some instances, there will
be minimum expenditure required and the base
case may need to be a ‘do minimum’ scenario
e.g. complying with new fire safety standards.
The base case should be identified as a reference point to mea-
sure the changes brought about by the proposal. Defining a re-
alistic base case is important as it may be the preferred option.
Indicators are best expressed using
the ‘SMART’ principle:
Specific– objectives should be well defined
Measurable– objectives should be
measurable so that they can be tracked.
Achievable– objectives should be deliverable
by the applicant.
Relevant– objectives should directly relate to
identified problems.
Timely– objectives should be achieved within
a specific timeframe.
3.2 DEFINING A BASE CASE
3.1 PROPOSAL OBJECTIVES & INDICATORS
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This section should describe how and why the
preferred option was selected.
Applicants should demonstrate that a range
of options that would meet the proposal
objectives were considered. A comprehensive
option development process can often identify
alternative options that may deliver better
value for money or identify value management
opportunities to make the preferred solution
better. This process could also identify options
that are cheaper but have a lower level of
benefits.
OTHER DELIVERY OPTIONS
Alternative options that applicants may need to
consider (this is not an exhaustive list) include:
• Alternative sites (i.e. upgrading an existing
site or relocating to a greenfield site)
• Dierent building options (i.e. layouts,
footprint, materials etc.)
• Dierent operating models (i.e. alternative
operating models for art facilities may
include local government run, not for profit
limited by guarantee or company limited by
guarantee)
• Staged redevelopment or upgrade of
facilities (i.e. does all the work need to be
done at the same time or could dierent
packages be prioritised over several
planning horizons)
• Options to maximise usage of assets (i.e.
considering sharing of community facilities
with other community groups)
• Standalone or precinct based approach
(i.e. investment in a new community facility
may be maximised through investment of
surrounding facilities such as the visitor
information centre, caravan park or local
transport hub).
Other criteria including legal/regulatory,
stakeholder support, technical considerations,
risk and sustainability may also need to be
considered in selecting the preferred solution.
The preferred solution put forward should be shown not only
to be a good solution, but the best solution available to resolve
the identified problems.
The scope of works should include the key
elements and why each element is needed.
The description of the works proposed should
include:
• Location
• Quantifiable details including area/length,
capacity etc.
• Relevant design standards
• Property purchases required
• Major adjustments to utilities (e.g.
gas, electricity, water, sewerage, and
communications) required.
The proposal scope should also allow for
the additional design, preliminaries, project
management and proposed governance
arrangements to be enacted.
Concept diagrams, sketches or photos may
be used to help describe the scope. Further
supporting documentation may be submitted
as an appendix to provide further detail.
This section should describe exactly what is being delivered
by the proposal (the preferred option) and interdependencies
with other projects.
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3.4.1 SCOPE OF WORKS
3.4 INFORMATION ABOUT THE PROPOSAL
3.3 OTHER OPTIONS CONSIDERED
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In some instances, it is worth highlighting works
that will not be addressed by the proposal.
This may be relevant where a proposal forms
one element of a larger set of works or where
ancillary supporting works are proposed to be
undertaken by another proposal.
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3.4.2 PROPOSAL EXCLUSIONS
In some instances, there may be
interdependencies between the proposal and
other proposed works. These relationships need
to be highlighted to allow for an assessment of:
3.4.3 RELATED PROJECTS
The build-up of costs will usually be done by a
suitably qualified cost estimator although cost
estimates may use actual quotes. The cost
build-up should include:
• Base cost rates
• Base quantities
• Contractor margins
• Project management margins
• Contingency.
The applicant should report the total cost of their proposals and
outline how they arrived at their cost estimates. It should be
clear what works the cost estimate includes, how it was derived,
and whether any contingency and inflation have been included.
Applicants should report capital costs in two
ways:
• On an unescalated basis (i.e. without
inflation) to inform the cost benefit
assessment
• On a nominal basis (i.e. with inflation) to
inform funding and aordability assessment.
The assumed inflation rate(s) and its basis
should be reported.
All cost estimates should be exclusive of GST.
3.5.1 REPORTING COSTS
Further guidance on good practice cost
estimation can be obtained from
3.5 PROJECTED COSTS
www.investment.infrastructure.gov.au/whatis/
costestimation/
• To what extent the related project(s)
enables the proposal in question
• Whether the related project(s) and the
proposal in question need to be considered
collectively
• To what extent a delay or cancellation of
a related project(s) would impact on the
proposal.
In many instances, the upfront capital costs
may represent only a fraction of the total cost
of funding a proposal. To inform the value for
money and aordability assessment over the
life of the proposal, applicants should disclose
all ongoing costs associated with their proposal.
These ongoing costs may include:
• Operating costs
• Maintenance costs
• Repair costs
• Asset renewal and replacement costs.
In some instances, the proposal may realise cost
savings or revenues. These cashflows should
be identified separately to allow an assessment
of the net change in costs over the life of the
proposal.
3.5.2 PROJECTED ONGOING COSTS
11 12
To standardise the approach to calculating
benefits and to ease the administrative burden
on applicants, the Department’s Regional NSW
Group will prepare the cost-benefit analysis for
all NSW Government regional infrastructure
funding applicants based on inputs provided
by the applicants.
All business cases will include an economic cost benefit analy-
sis to determine whether a proposal will deliver value for
money.
Cost benefit analysis seeks to assess the
economic, social and environmental benefits
and costs over the lifetime of a proposal. In
doing so, cost benefit analysis goes beyond just
considering the direct eects, financial eects
or eects on one party, to considering all
impacts on the wellbeing of the entire society
or community.
It involves a systematic approach to assessing
the gains and losses of a proposal, emphasising
to the maximum extent possible, the monetary
value of these gains and losses. It assists
decision makers in:
• Identifying options that deliver net benefits
• Allowing dierent options to be compared
• Ensuring that all impacts on all parties are
considered
• Valuing costs and benefits incurred or
accrued at dierent points in time
The following principles underpin the cost-
benefit analysis framework:
• Base case: Costs and benefits of each
option are measured against the base case
(i.e. the incremental change).
• Valuation: All costs and benefits should be
valued in real terms (i.e. without general
inflation).
• Whole-of-life: Costs and benefits of each
option are considered over the life of the
proposal, including any ongoing costs that
may be incurred. The life of the proposal will
generally be guided by the life of the asset.
• Reference group: In general, costs and
benefits incurred or accrued by NSW
residents, businesses, the community and
government agencies should be included in
a cost-benefit analysis.
• Discounting: To compare costs and
benefits incurred and accrued at dierent
points in time, future costs and benefits
are converted into present values using a
standard discount rate to reflect the notion
that benefits and costs in the future are
worth less than benefits and costs today.
The results of a cost benefit analysis are
commonly summarised into an overall measure
of net benefit - either as a Net Present Value
(discounted benefits less discounted costs) or
Benefit Cost Ratio (ratio between discounted
benefits and discounted costs).
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3.6.1 KEY PRINCIPLES
The Department will specify the inputs
required by the Department to prepare
the cost-benefit analysis.
3.6 COST BENEFIT ANALYSIS
To support the Department’s valuation of
costs and benefits, applicants will need to pro-
vide the Department with information relating
to:
• The types of benefits and costs that may
be accrued or incurred
• The parties that will accrue or incur these
benefits or costs
• Timing of these benefits and costs
• Key assumptions
• The beneficiaries.
More information on cost benefit
analysis principles may be found at:
www.treasury.nsw.gov.au/nsw-economy/eco-
nomic-frameworks
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Identifying benefits
In the first instance, applicants should list key
benefits that are expected to arise from each
option, in addition to the upfront and ongoing
costs already identified.
Cost-benefit analysis considers a broader array
of benefits (and costs) beyond just the impact
on applicants. In most instances, these benefits
may be non-financial in nature. For instance,
the social benefit of providing new playground
equipment for children and parents would be an
example of a benefit that would be considered
in the cost benefit analysis but not in a financial
analysis.
Benefits (and costs) on other parties or assets
should also be considered. For instance,
the installation of new lighting towers may
decrease the need for maintenance on nearby
sporting fields.
Quantifying the number of beneficaries
The monetary valuation of benefits and costs
is critical to the cost benefit analysis. Generally,
the monetary valuation will be driven by the
following:
• Volume: The number of people that will
benefit from the proposal. This may be
measured for example, through changes in
the number of events or the number of new
and existing users.
• Value: The dollar value per unit of volume,
in real terms (to be determined by the
Department).
While the Department will be responsible for
estimating the proposal’s benefits, applicants
will need to supply the Department with the
underlying data and assumptions to quantify
the benefits. Such forecasts may consider:
• How many existing users may benefit
• Whether existing users may change how
often or how they use a service
• How many new users may benefit
• How often or how these new users may use
a service
• How usage may change over time, with or
without improvements.
Applicants may wish to consider the following
approaches to prepare their forecasts including:
• Desktop reviews
• Literature reviews
• Case studies
• Historical trends
• Data analysis
• Customer or community surveys.
Regardless of the approach adopted,
applicants should disclose the approach they
have adopted and references used to support
their forecasts. Applicants should balance the
eort of the forecasting exercise in line with
the projected cost of the proposal.
3.6.2 INFORMATION REQUIRE
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For most proposals, the following cashflow
projections are sucient:
• Revenue or cost savings
• Capital expenditure
• Ongoing operating and maintenance
expenditure
• Renewals or major repairs.
Applicants should provide costs from the start
of the proposal (planning) through to the
steady state (as a general guide, 5-10 years
should be sucient).
However, depending on the nature of the
proposal, it may be appropriate to undertake a
detailed financial appraisal. For example, where
a proposal may need to be financially viable (e.g.
a new swimming pool), the Department will
need to assess whether the applicant has the
means to continue operating and maintaining
the asset after the investment is made. In these
instances, applicants should provide projected
revenue estimates or outline proposed funding
arrangements.
The input assumptions in the financial appraisal
should be consistent with the data provided
for the cost benefit appraisal e.g. anticipated
usage of new swimming pool.
In this section, applicants are requested to evaluate the budget
impact of the options from the applicant’s perspective. Its
focus is on whether the projected revenues will cover the
whole-of-life costs of the proposal.
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Co-contributions from community groups,
businesses and other government agencies are
strongly encouraged.
In addition to NSW Government funding,
potential funding sources that may be
considered by applicants include:
• Council contributions
• Industry contributions
• Community contributions
• Contributions from the Commonwealth
Government.
Where supplementary funding sources are
identified, applicants are recommended to
demonstrate how secure these funding sources
are (e.g. letters of support, MoUs) or how they
have been calculated.
Applicants will be expected to be budget for
ongoing costs, unless the funding program has
specific provisions to fund these costs.
In this section, applicants are requested to outline how they
will fund their proposal, including how much funding they are
requesting from the NSW Government.
3.7 FINANCIAL APPRAISAL
3.8 PROPOSED FUNDING
15
Where applicants propose to use funding
from non-government sources, either to fund
upfront capital costs or ongoing costs, the
Department will need to assess the viability of
these funding sources.
Applicants are requested to outline, over the
past two financial years, and for each party:
• Their financial performance
• Their financial position
• Their cash flow position.
The underlying financial statements should
also be provided.
Recognising that there will be instances
where this information will be commercial in
confidence, applicants may elect to present
this information as an attachment separate
to the business case. In these instances,
applicants should contact the Department to
discuss appropriate confidentiality and probity
arrangements.
To further strengthen the funding case,
applicants may also elect to provide:
• Letters of support, MoUs or similar
documents to demonstrate funding support
from other parties
• Contingency measures should other funding
sources fail to materialise e.g. additional
contributions from Council, staging or
rescoping.
In this section, applicants are requested to evaluate the budget
impact of the options from the applicant’s perspective. Its
focus is on whether the projected revenues will cover the
whole-of-life costs of the proposal.
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A proposal that oers the best value for money
will demonstrate that:
• Objectives are linked to stated problems/
opportunities
• A wide range of possible options to meet
the stated objectives have been considered
• The reason for selecting the preferred
option is clear
• The cost estimates are robust
• The benefits of the proposal are likely to
exceed its costs
• All whole-of-life costs, including ongoing
costs have been considered
• These costs, particularly ongoing costs, are
aordable
• Funding is available for the proposal.
3.10 ANALYSIS OF THE PROPOSAL CHECKLIST
3.9 FINANCIAL HEALTH STATUS
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SECTION 4:
PREPARING THE
IMPLEMENTATION
CASE
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SECTION 4: PREPARING THE
IMPLEMENTATION CASE
Applicants must demonstrate that they have the capacity, capability and experience to deliver their
proposals through robust strategies for project and risk management.
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Typically, key events and decision points
beyond the submission of the business case
would include:
• Review period
• Planning and detailed design
• Approvals (legislative, regulatory, planning)
• Procurement
• Development/construction
• Commissioning.
The program should demonstrate that the
proposal and its milestones are achievable.
Careful planning is required to ensure
that critical path events are identified and
sucient time is allowed for, including time
for contingency. Appropriate scheduling also
ensures that appropriate escalation in the cost
estimates is allowed for.
In this section, applicants should outline the key events
and decision points associated with their proposal.
4.1 PROGRAM & MILESTONES
The governance arrangements should address:
• Who owns the proposal
• Who is responsible for the proposal
outcomes
• Who is responsible for approving key
decisions
• Who will manage the proposal
• How it will be resourced
• Who is responsible for monitoring the costs,
benefits and risks.
Applicants should demonstrate that the
nominated personnel have the relevant
experience and skills to deliver and manage the
proposal. These personnel may change as the
proposal transitions from planning to delivery
and then to operations.
Governance arrangements should also include
detail on what team and processes are in place
to control and manage the proposal. The team
should be of sucient size to deliver as well
as manage the proposal. The role of each
individual in the team should be well defined
with clear lines of reporting and delegations.
Typical project roles are outlined as follows but
may vary based on the size and complexity of
a project. For smaller proposals, some of these
roles may not be required:
• Project Sponsor: Holds ultimate
responsibility for the outcomes of the
proposal.
• Project Manager: Is responsible for the
The applicant will need to document the governance
arrangements for delivering the proposal.
4.2 GOVERNANCE
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delivery of the project and management of
the team
• Project Team: Is responsible for developing
and delivering the proposal. May contain a
mix of specialist skills made up of internal
and external resources
• Steering Committee: Provides senior
management oversight of the proposal and
advice on critical issues. Generally, such a
committee is in place for complex proposala
and/or where multiple stakeholders have a
major interest in the proposal
• Central Agency Assistance: Depending on
the size and complexity of the proposal,
the applicant may need assistance from
other agencies such as the Department of
Premier & Cabinet, Infrastructure NSW and
Treasury.
Applicants may also wish to consider the role
of external parties including key stakeholders,
funding bodies and delivery parties in their
governance arrangements.
The applicant should demonstrate a rigorous
risk assessment has been undertaken that
identifies:
• The range of risks relevant to each of the
options
• The chance of these risks occurring
• The impacts of these risks and mitigations.
The identification of risks may be undertaken
as a desktop exercise for a relatively
straightforward proposal. For a more complex
proposal, key risks may need to be determined
through workshops and stakeholder interviews.
Key risk areas to consider include:
• Scope
• Construction
• Financing
• Planning and approvals
• Legal
• Property acquisitions
• Utility relocation and adjustments
• Procurement
• Project management
• Stakeholder and communication
• Change management
• Sustainability (social, economic and
environmental impacts).
Applicants will be expected to submit a risk
management plan and a risk register with their
business case. Ideally, the risk register will tie in
with the proposal’s schedule (in terms of time
contingency) and the proposal’s cost estimates
(in terms of cost contingency). Planned
mitigations and monitoring activities will need
to be embedded in the proposal’s scope and
governance/management arrangements.
In this section applicants need to outline the key risks/
issues that the proposal faces, planned mitigations and
the rating of these risks.
4.3 KEY RISKS
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The applicant should identify any relevant legislative or
regulatory issues or approvals that may impact on the
delivery of the proposal.
4.4 LEGISLATIVE, REGULATORY ISSUES & APPROVALS
An asset ownership matrix is a simple way
of outlining who is responsible for the assets
created by the proposal.
For each of the stages of the asset lifecycle
(plan, acquire, operate/maintain and dispose),
the applicant should outline how the assets will
be managed. This should include:
• A brief description of activities
• Who is responsible for those activities.
4.6 ASSET MANAGEMENT & OPERATIONS
For an example on how to prepare a
Risk Management Plan, refer to:
Risk management is the process of managing
future uncertain events to maximise the chances
that the proposal outcomes will be achieved
within the scope, timeframe and budget.
Applicants will need to prepare a Risk
Management Plan to support their application.
This plan should outline:
• The identification of risks
• The assessment of risk exposure based
on the consequence and likelihood of
occurrence
• The monitoring and management of risks
• The mitigation of risks
• The processes involved to review the risk
register and plan
• Risk reporting.
4.5 RISK MANAGEMENT
This section documents how the risks were identified
and assessed and how they will be managed throughout
the proposal lifecycle.
Applicants should demonstrate that they can
deliver the proposal by demonstrating that
they have identified the proposed:
• Key milestones to deliver the proposal
• Resources and governance structures in
place to deliver the proposal in an ecient
manner
• Major proposal risks have been identified
including procurement, change and
sustainability impacts
• Management activities.
4.7 IMPLEMENTATION CHECKLIST
www.treasury.nsw.gov.au/information-pub-
lic-entities/governance-risk-and-assurance/
internal-audit-and-risk-management/risk
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This section outlines who has responsibility for the
ownership, operation and maintenance of the assets that
will be created by the proposal and a brief description
of the activities to manage these assets over their life.
The section should also describe if the proposal has an
impact on existing assets.
prepared by
www.corview.com.au
