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Capital Investment Manual: updated information

  • Last modified date:
    12 March 2007

Business case guide

Structured on nine steps to producing an OBC and FBC, the guidance is extant for conventionally procured capital schemes and for PFI schemes up to and including option appraisal leading to the identification of a public sector comparator for PFI schemes.

However, for build schemes with a capital cost over £20m to be procured under PFI, the NHS specific version of the 2004 Treasury value for money assessment guidance should be followed at OBC and FBC.

Project organisation

This guidance describes the key roles and responsibilities for any capital investment scheme.  It then outlines recommended structures for managing construction and IT projects.  However, published in 1994, the guidance is, in the main, superseded by the OGC Successful Delivery Toolkit - Project Management

Management of construction projects

This guidance sets out the management procedures for all but small and simple construction projects.  It covers the stages of FBC approval, Design, Tender & Contract, Supply & Construction, Commissioning and Post Completion.  Capital cost forms (FB1-4) are included.  The procedures have a mandatory status, as have the specified actions required of Project Directors for all schemes that require Departmental, Treasury or Ministerial approval. 

Superseding guidance published since 1994, however, has modified their application in practice.   This includes changes to approval procedures, growth in PFI procurement and developments in design guidance.  The CONCODE suite of guidance referenced in the text as complementary guidance has similarly not been updated and, like the procedures, tends to support traditional contract strategies and associated advisor appointments.  Moreover, the Department's review of central returns in 2005 has discontinued the need to submit the information set out in Appendix 8: Mandatory Reports to the NHS Executive and in Appendix 9: Assessment for Consultants' and Contractors' Performance, though they remain as good practice guidance for project management reporting.

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