Check affordability and best value

At key stages in a project’s inception and development, formal checks should be made to ensure that it offers best value for money and that it is affordable.

Value for money should be assessed over the life of the building and should include consideration of revenue as well as capital costs. Cheap capital solutions do not necessarily offer the best medium to long term value and are often only achieved by compromising design quality and the patient experience. There will be formal approval processes that must be addressed at key stages, depending on the procurement route that is selected. These will include:

• formal approval of terms under the GP-led route or the 3PD route
• resolution of legal issues and financial close under PFI and LIFT routes
• approval of OBC and FBC under centrally-funded routes

For further information on approval processes refer to section on ‘Prepare your business case’.