APMG BBC Foundation cheat sheet

Five Case Model: strategic, economic, commercial, financial and management cases; the strategic case is prepared first and sets the case for change.

Strategic case contents: strategic context, case for change, investment objectives, business scope, benefits, risks, constraints, dependencies and stakeholder views.

Decision rule: if the proposal lacks strategic fit or a compelling case for change, it stops before economic appraisal.

Investment objectives should be SMART and each objective should trace to at least one benefit and one appraisal criterion.

Business scope records what is in and out of scope, including boundaries, interfaces, dependencies and excluded activities.

Strategic fit means alignment with organisational, departmental and government priorities and published strategies.

Benefits in the strategic case are outcome statements, not outputs, and are linked to objectives and measures.

Stakeholder analysis maps interest and influence; high-influence, high-interest parties require active engagement.

Constraints and dependencies are recorded in the strategic case and carried into delivery planning.

The economic case selects the option offering best public value using Green Book appraisal methods.

Options process: long list, short list, preferred option; the short list includes a do-minimum baseline.

Do minimum keeps current arrangements with essential maintenance only; it is the comparator, not a do-nothing option.

NPV = Σ (benefits − costs) / (1 + r)^t over the appraisal period.

BCR = present value of benefits ÷ present value of costs; BCR above 1 means benefits exceed costs.

Green Book social discount rate is 3.5% for years 0–30, then declines in later periods.

Optimism bias uplifts are applied to capital costs and schedules, with evidence-based values by project type.

Sensitivity analysis varies costs, benefits and timing; switching values identify where the preferred option changes.

Non-monetised benefits and risks are recorded alongside monetised results and weighed in the option decision.

The commercial case demonstrates a viable deal: route to market, supplier capability, risk allocation, contract terms and payment.

Procurement routes include open competition, restricted procedure, framework agreement and negotiated procedure; choice depends on value, market and urgency.

Risk is allocated to the party best able to manage it; retained risks remain in the economic appraisal.

Payment mechanisms link payment to outputs or service performance and include deductions, incentives and measurement rules.

Market sounding tests supplier capacity, appetite, likely costs and innovation before the route is fixed.

Contract management arrangements must be defined before award: performance measures, governance, variations and dispute resolution.

Single-source procurement requires a documented justification where competition is absent or impractical.

Deal structure covers contract length, pricing basis, risk transfer, termination rights and change provisions.

The financial case tests affordability: whole-life costs must fit approved budgets and confirmed funding.

Funding gap = total required funding − confirmed available funding; a positive gap means unaffordable as described.

Whole-life cost includes capital, operating, maintenance, replacement and disposal costs over the asset or service life.

Cash flow profile checks funding availability in each year; timing mismatches are affordability risks.

Accounting treatment determines capital or revenue classification, asset recognition and liability recognition.

Affordability is separate from economic value: an option may have a positive NPV but be unaffordable.

The financial case reconciles costs and funding to budget holders and accounting statements, including inflation assumptions.

Both capital and revenue budgets are tested; revenue consequences of capital investment must be funded.

The management case sets out delivery, governance, assurance, risk management, change control and benefits realisation.

Governance roles: the Senior Responsible Owner is accountable; the project board provides direction; the project manager delivers.

Assurance plan uses independent reviews, gate checks and audits at key decision points.

Delivery plan includes milestones, dependencies, resources, critical path and contingency.

Benefits realisation plan names each benefit, owner, baseline, measure and review point.

Change control assesses impacts on scope, cost, schedule and benefits before approval.

Risk management cycle: identify, assess, allocate, mitigate and monitor; the risk register is reviewed by the project board.

Post-implementation review compares actual outcomes, costs and benefits with the approved business case and records lessons.

Management case must evidence capability and capacity to deliver, including supplier and client resources.