Detailed business case

Overview

The detailed business case (DBC) confirms an activity that comes from the detailed programme of activities and confirms the overall assessment profile. It includes a detailed reporting of economic, financial and commercial aspects of the activity built upon the strategic/ programme/ indicative business case.

The DBC should be completed before commencing the detailed pre-implementation (including detailed design, property acquisition, consenting or construction) of the activities. It is recognised that whilst activity specific guidance may be used to inform the options considered as part of the DBC, designs should not be progressed past this level until the DBC is complete and decision makers make their informed choice of the option(s) to be taken forward to implementation.

Appraisal of alternatives and options and production of a DBC should precede any commitments to the project. This ensures the proper consideration of the transport issues relative to the proposals being developed and presentation of these aspects in a clear manner.

Detailed assessment of the option/s is carried out in the DBC which have been taken forward from the previous business case phase, with specific consideration given to:

• Outcome objectives: a detailed appraisal of option/s against the transport outcomes using quantitative techniques and analysis. 
• Assessment of impacts: a detailed appraisal of the impact of options using qualitative and quantitative techniques and analysis.
• Cost to government: a detailed analysis of the total public sector cost of options, including investment costs, operating and maintenance costs.
• Risk and uncertainty: a detailed analysis of the risk and uncertainty associated with each option.

Each business case needs to clearly articulate how the recommended programme or option will address the identified problems through the agreed investment objectives. By this phase of the business case problems, benefits, SMART investment objectives, measures, baselines and expected outcomes should all be set. Benefit realisation needs to be considered through each phase of the business case. 

See the Detailed business case overview [PDF, 60 KB] for more information.

 Key steps

• Reconfirm strategic fit and investment assessments.
• Reconfirm the project/activity team.
• Procure professional services.
• Develop the option(s).
• Understand context, problems, opportunities and constraints.
• Focus on the key risks. For example, if environmental factors are the biggest risk, more effort should be expended on considering those factors.
• Develop a scheme estimate.
• Obtain independent peer reviews as required.
• Engage with stakeholders and the public.
• Consider land and property requirements.
• Consider the strategic, economic, financial, management and commercial aspects of the business case. For further guidance, view the Detailed business case template [DOCX, 188 KB].
• Produce the detailed business case using the template.
• Obtain endorsements as required and approvals according to delegations, review with stakeholders.
• Approved.
• Progress to the next phase(s), pre-implementation.

Benefit realisation

Ensure investment objectives and a monitoring plan that includes developing SMART investment objectives, including KPIs, measures, baseline data and expected outcomes are developed. This may have been undertaken at an earlier phase, but detail should be added as relevant. 

Confirm the investment objectives and assess the preferred option(s) against the investment objectives. This is typically done to a greater level of detail and at the more focused activity level than during a programme business case. 

Complete project benefit mapping to the activity level, which should create a clear line of sight between project problems, benefits, investment objectives, measures and KPIs. 

Finalise the investment objectives and update the project monitoring plan to reflect any developments or improved evidence, using it as a base for completing the benefits realisation framework. Secure key stakeholder, project team and measure owner acceptance as relevant (as part of the management case), then upload the completed benefits realisation framework to TIO. 

If this is part of a wider programme business case, revisit the problems and benefits of the programme and determine the contribution made to the programme level investment objectives by the detailed business case. Document this in the monitoring plan. Update the programme business case if necessary to reflect benefit realisation.

Further information available at the benefit realisation page. 

Quality assurance and approvals

Records of quality assurance and approvals should be undertaken in accordance with the System Design and Delivery project assurance and approvals process.

There are also check in points [PDF, 180 KB] to keep in mind through a detailed or single stage business case. One check point is mentioned with an investment quality assurance (IQA) based on 12 of the 16 investment questions. The rationale for the check in and IQA is to provide assurance the business case is on the right track, the quality is high, and there is wider organisational buy in to the short listed options prior to public consultation. 

[JPG, 130 KB]

Technical requirements

For each phase of the business case process there are technical requirements that may be relevant to your project that will need to be considered and included in addition to general guidance and templates. Aligned to the business case philosophy, suppliers are required to meet more technical requirements as an activity progresses through the business case phases.

Outlined below are the technical requirements for completing the detailed business case, by subject matter.

Suppliers are required to comply with these requirements except where varied within the scope of a contract.

For further information or advice, contact the relevant team.

Tools

Forms and templates

Guidelines

For further information contact designpracticesolutions@nzta.govt.nz.