Investment Guidance RouteMap
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Private finance initiative (PFI)
- PFI guidance
- New standard preliminary invitation to negotiate (PITN)
- New standard prequalification questionnaire
- New standard output specifications
- Standard contract
- Land and buildings in PFI schemes
- Design development protocol for PFI schemes
- Generic economic model PFI schemes
- Learning lessons from postproject evaluation
- Improving PFI procurement
- Changes to Treasury Green Book
- Investment in IM&T in the NHS
- Social Care PFI Initiative
- New hospital schemes
- Investment Guidance RouteMap
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The five-case model
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Last modified date:8 February 2007
The strategic case: strategic fit
Users seeking assistance in developing their business strategies and objectives for strategic, outline and full business cases should reference guidance included in this section, where direct links to relevant websites are provided.
The economic case: options appraisal
The purpose of this stage of the business case is to identify as wide a range of options as possible that meet the objectives set out the Strategic Case and to evaluate them. This section includes guidance on option appraisal, including cost/benefit analysis, optimism bias, sensitivity to risk testing and value for money assessment.
- The Green Book: Guidance on the appraisal of public sector investment proposals
- Changes to the Green Book
- DH guidance on calculating the adjustment for optimism bias (build schemes)
- HM Treasury Value for Money assessment guidance, and DH guidance
- Principles of the Generic Economic Model
- Treasury Taskforce Technical Note 5: How to construct a public sector comparator
The financial case: affordability
The aim of this stage of the business case is to identify the total whole life, and net costs of the investment, and the sources of funding in order to demonstrate affordability to the procuring organisation and associated health economy. Guidance in this section includes capital costing (not yet included) accounting treatments and PFI specific issues.
- Treasury Taskforce Technical Note 1: How to account for PFI transactions
- PFI Guidance Manual (Section 3)
- DH guidance on calculating the adjustment for optimism bias (build schemes)
- Guidance on equipment in NHS PFI projects
- Balance sheet treatment in NHS PFI schemes
- OGC guidance on certain financing issues in PFI contracts
- Land and buildings guidance
The commercial case: commercial aspects
The purpose of this stage of the business case is to consider the implications of the potential procurement options and to set out the rationale and commercial arrangements associated with the chosen procurement route. Guidance in this section includes procurement, bidder selection, contractual items and design quality.
The management case: achievability
The purpose of this stage of the business case is to demonstrate the achievability of the project by setting out how it will be managed over the lifetime. This section includes guidance on project documentation, approvals, contract and risk management, audit and lessons learned.
The five-case template for IM&T schemes
OGC guidance
The business case is an essential document for project success. It provides justification for the procurement in terms of its alignment with the objectives of the organisation; it also provides the basis for managing the delivery of the project on time, within budget and to agreed quality standards.
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