Step By Step Appraisal Guidance
These steps are presented broadly in the sequence in which they should be undertaken, but this should not be interpreted rigidly. For example, it is not necessary to wait until all the options are defined before starting to consider costs, nor is it necessary to identify all the costs and benefits before beginning to identify risks and uncertainties.
However, something that may generally be interpreted rigidly is that the conclusions and recommendations should not be decided before the analysis is undertaken!
- Step One: Explain the Strategic Content
- Step Two: Establish the Need for Government Intervention
- Step Three: Define the Objectives and Constraints
- Step Four: Identify and Describe the Options
- Step Five: Identify and Quantify the Monetary Costs and Benefits of Options
- Step Six: Assess Risks and Adjust for Optimism Bias
- Step Seven: Weigh Up Non-Monetary Costs and Benefits (including Equality, Sustainability and Lifetime Opportunities)
- Step Eight: Calculate Net Present Values and Assess Uncertainties
- Step Nine: Assess Affordability and record proposed arrangements for Funding, Management, Marketing, Procurement, Benefits Realisation, Monitoring and Evaluation
- Step Ten: Assess the Balance of Advantage between the Options and Present the Appraisal Results and Conclusions