Developing business cases
BQ has developed best practice frameworks and worked with government agencies to improve the quality of business cases. Government now receives more robust analysis to support investment decisions.
BQ’s frameworks are generally sound, and the business cases we reviewed generally aligned with its frameworks. However, BQ does not always effectively apply its frameworks, and some business cases could be more robust. Four of the cases we reviewed assessed options using qualitative analysis only, without the required quantitative analysis. Three of the cases we reviewed were endorsed on benefits that could not be monetised.
BQ’s assurance activities are well planned but not always fully implemented. Some assurance activities were informal and others were not conducted at the optimal time, limiting their assurance. In some cases, issues raised by peer reviewers remained unresolved and peer review logs were not always fully maintained.
The timing of infrastructure investment announcements affects the value of business cases. Early announcements create risk and lead to undue pressure to progress. There are currently no guidelines for scenarios when government announces its preferred option before the business case is complete.