Appendix 1
Business Case Template
Expenditure < £250,000
Project Title:
Directorate:
Prepared by:
Date:
Director
Approval:
Note: The level of appraisal required is to be proportionate and appropriate to the level
of expenditure to be incurred.
1. Introduction and Assessment of Need
Please provide a brief explanation of what the expenditure is for and why it is
needed. What would the implications be if project/acquisition does not
proceed?
Include:
 Background Information
 What you are hoping to achieve
 What is the current problem
 Provide a strategic context – ie departmental business plan, corporate plan,
regional strategies, government strategies
2. Aim and Objectives
Please state the aim and objectives of the project
Aim: What are you hoping to achieve – be specific
Objectives: Set SMART targets
3. Options
Please identify if there are any alternative options and provide a brief
explanation as to why these have not been considered further.
Set out a number of options. Always include a do nothing option (status quo).
Explain each option and how it would meet the aim and objectives and whether it is
carried forward for further consideration or not.
4. Monetary Costs and Benefits
Please state the monetary cost of the project/acquisition. A sentence should
also be included to explain how this cost has been estimated e.g. previous
experience. If there are any monetary benefits, these should be included here.
Include capital costs, revenue costs, income generated and savings made for each
option carried forward for consideration.
5. a]
Non-Monetary Costs and Benefits
Please briefly identify any non-monetary costs and benefits.
Non-monetary: Sustainability: environmental, social, health and well being
Non-monetary costs – costs which can’t be measured in financial terms.
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Non-monetary benefits – use a weighted scoring method. Document rationale for
the scores used. Mark each option.
b]
Social Value
Has social value been considered?
Social value can be defined as the additional benefit to the community that can be
derived from a procurement process over and above the direct purchasing of goods,
services or works
6. Risks
Please indicate if there are any notable risks associated with the
project/acquisition.
Consider financing, market conditions, contractor capabilities, the requirements for
statutory approvals, land ownership, etc; any factor which would have a negative
impact on seeing the project run smoothly.
7. Analysis and Selection of Preferred Option
Summarise all of the options based on costs and benefits: both monetary and nonmonetary. Clearly document the preferred option.
8. Monitoring and Evaluation
Please identify who will be responsible for monitoring the project/asset. Also
indicate how and when performance will be evaluated.
Document who will manage the project, who and how the budget will be monitored,
how the benefits will be measured.
9. Financing
Please indicate how the project/acquisition will be financed.
Example: grant aid (making reference to any conditions associated with the grant
aid including timescales/restrictions), included in estimates.
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