Describe in detail what is proposed by the Option (scope), clearly linking it to the opportunity defined in Section 1. Any requirements for specialist resources or skills should also be identified here, as well as any dependencies that exist with other projects or initiatives. 3.1.1 Project (output) Capital include all the resources partially used (depreciated) by the project and returned to the organisation once the project is complete. These might include land, buildings, motor vehicles, computers and the like that, from an accounting point of view, appear on the balance sheet assets. Materials are wholly consumed by the project, such as concrete, timber, hire equipment and the like. These appear in our financial statements as an expense. You must also allow for the wages, salaries and on-costs (such as holiday and sick leave) of the project team, including contractors and consultants. You should also include any relevant travel and accommodation required by the project in this category. Transfer costs are incurred in taking the project live; in other words, transferring the output(s) from the project team to the client. These might include things such as user documentation, training manuals and client walk-throughs. Other indirect (overhead) costs may also be considered here, especially if the indirect costs of one or more alternatives are significantly different. Capital Materials Labour Contractors / consultants Transfers Other Total Where appropriate, you should discuss the basis for estimating these costs and your level of confidence in these estimates. On larger projects, you might also like to consider the oppportunity cost of these investments.
3.2.4 Risks to our organisation At the project initiation stage, we are interested in the relative risk to our organisation of proceeding with each Option. It is therefore important that we assess each alternative against the same criteria. These criteria can be updated or added to as required, as long as it is done consistently for each Option. LOW (1) MEDIUM (3) HIGH (5) Score COMPLEXITY Opportunity is clear and project solution is readily achievable Either opportunity or project is difficult to understand or achieve Opportunity and project are difficult to understand or achieve / 5 TIME <3 months and/or flexible timeframe <6 months and/or some schedule flexibility >6 months and/or schedule and delivery date are fixed / 5 LEARNING CURVE Successfully completed this type of project five (5) or more times Successfully completed this type of project at once We have not successfully completed this type of project before / 5 SAFETY No employee or public health or safety risks Employees and/or public may be at risk of injury or illness Employees and/or public may be at risk of serious injury, illness or loss of life / 5 STRATEGIC IMPORTANCE Outcomes link to only one (1) strategic objective of our organisation Outcomes link to several strategic objectives of our organisation Outcomes affect core service delivery and directly impacts key strategic objectives / 5 OPERATIONAL IMPACT Impacts only one (1) department in our organisation Impacts several departments in our organisation Impacts most or all of our organisation and/or may disrupt continuity of service / 5 DEPENDENCIES No major dependencies and/or inter-related projects Some major dependencies and/or inter-related projects Major, high-risk dependencies and/or inter-related projects / 5 BRAND / REPUTATION Project is only of internal interest to our organisation There is likely to be some community interest in our project / outcomes This project and/or its outcomes will be highly visible in the community / 5
Year 1 Year 2 Year 3 Year 4 Year 5 Labour Materials Compliance Overheads Other Total Compliance costs might include safety training, quality control and (especially in the case of Option Zero) anticipated fines from regulators. Overheads are administrative and other charges generally incurred by the organisation (such as rent, electricity, telephone, photocopying, insurance) that should be attributed to the asset, usually on a pro rata or fixed fee for service (eg per day). Other costs might include ongoing operator training and the forecast costs of necessary upgrades or decommissioning – add as many rows here as you feel necessary. It is important to note that some of these costs may increase over time as the solution deteriorates. Note that you do not forecast for CPI (cost of living) increases here – only the increase in costs likely to be associated with ordinary wear and tear. On larger projects, you might also like to consider the oppportunity cost of these investments. 3.3.3 Other impacts Other impacts are the non-monetary (intangible) outcomes delivered by a project. They are generally classified by the bearers of these impacts. As it is difficult to apply a single, standard unit of measure to these impacts (such as money), we often rate them with a subjective score. To the extent that it is possible to do so, you should explain and justify your scoring methodology. Impact scores may also be weighted. For example, if you wish to prioritise impacts to our organisation, the organisation score can be weighted (multiplied) by 4 times to indicate its relative importance. Weightings – and the assumptions that underpin them – must be fully disclosed (usually as an Appendix attachment). WEIGHT RATING Our organisation