Prepare your business case

This section gives guidance on how to prepare a business case.

The main reason for the development of a business case is to give all interested stakeholders a clear view of what the project will involve, how much it will cost and how it will be funded, a proposed timetable, and a clear vision of what services the new building will be able to deliver. This section is not intended to offer a template for all business cases. An example of a business case for the development of new practice premises is included.

A full list of the headings that will need to be considered when developing a business case are as follows:

• Executive summary
• Background:
• location of services
• patient demography
• primary healthcare team
• services provided
• description of current premises
• need for change
• Strategic context:
• taken from the PCT's SSDP
• Development proposal:
• brief description of the options - the extent of options will vary from plan to plan depending upon the key drivers for change such as, age of GPs, availability of land, working in partnership with other organisations, etc
• Preferred option:
• reasons for choosing the preferred option - a full option appraisal will not normally be necessary unless the development proposal does not flow naturally from the PCT's estate strategy or SSDP
• Details of the proposed development:
• schedule of the accommodation stating number of rooms, space requirements in square metres and their intended use
• capacity for future expansion
• site layout, floor plans, sections and elevations
• car parking requirements
• details of the specification where known
• name of PCT's design champion and details of their involvement
• Details of the developer and other partners to the scheme:
• name, address and background of the proposed developer
• how the developer has been chosen, evidence of track record and success of similar schemes
• name, address and background of other partners to the scheme
• how intended tenants/occupiers have been chosen, evidence of track record and success of similar schemes
• Legal and financial implications and affordability:
• reasons for choice of capital or revenue funding
• copy of approval of application for consent to acquire an interest in property whether freehold or leasehold
• estimated total project capital cost of the scheme and how the cost has been estimated
• proposed tendering arrangements for the construction – brief details of the selection process
• estimated revenue costs
• details of the DV's assessment of the current rental value and items eligible for reimbursement, where applicable
• details of the proposed use of the premises flexibilities
• summary of the heads of terms of the proposed lease
• estimated capital charges, where applicable
• details of the current charges of existing premises and the net increase/decrease in revenue, where applicable
• copy of approval for payment of negative equity/mortgage deficit
• Funding options:
• details of funding streams to be provided for the scheme, e.g. 3PD, Local Authority grants, private loan arrangements, lease rentals from proposed tenants, etc
• Timetable:
• details of the proposed programme of events including the various stages such as consultation process, acquisition of land, scheme design, planning permission, tender period, legal and financial negotiations, construction period, bid approval, post project evaluation, etc
• Management arrangements:
• lead manager for the project, lead contacts within the GP practice, PCO, development company, partnership organisation
• names of consultants, architects, quantity surveyors, planning consultant, valuer, etc
• Other resource implications:
• Need for additional clinicians, administrative staff, etc
• Risk assessment:
• an assessment of any factors that are likely to have a significant impact on the scheme
• Key benefits and outcomes:
• summary of the main beneficial aspects of the development scheme including improvements in patient satisfaction, quality of care, staff morale, operational aspects such as faster response to enquiries to patients, communications etc
• Conclusion
• Appendices:
• to include details which are best provided separately rather than within the main body of the bid document, eg plans, financial calculations, etc

It should be stressed, however, that it is unlikely that all these headings will need to be covered by any individual scheme as often the business planning process will have taken place over many months and some of this information will have submitted in other ways. Individual PCTs should advise practices and developers of the level of detail that will be required for any particular scheme. A typical business case is available as a downloadable document.