Design and build: business justification
The business justification stage is the first stage. It takes place once a business need has been identified which might result in a building project. The stage involves assessing whether there is justification for the project, preparing a preliminary business case and creating an organisational structure for the project. The business justification stage takes place before the selection of the consultant team, so the client may wish to appoint independent client advisers to help them.
Contents |
[edit] Preparing a statement of need.
The client identifies a business need which might result in a building project and selects a preliminary internal team to assess whether there is justification for the project.
The client prepares a statement of need, which is a first attempt to describe the possible requirements of the project. This may or may not result in the need for a project, and even if a project is necessary, it may not require a new building.
[edit] Preparing a preliminary business case.
Very experienced clients may have in-house expertise allowing them to make appointments and to prepare a preliminary business case and strategic brief. However, many clients will not have the full range of skills required and may wish to appoint independent client advisers to assist them. These advisers are separate from the consultant team which will undertake the actual design of the project. Go to the work stage: Design and build: appointment.
The client explores high level options for meeting the requirements set out in the statement of need. This may include an assessment of comparable projects. They then prepare a preliminary business case, which is a first attempt to justify the investment required by the potential project and should include a management structure, draft legal agreements and funding options.
The client assesses the preliminary business case and decides whether it merits investigating in more detail and whether procedures should be established for appointing a consultant team.
[edit] Establishing an internal organisation.
The organisational structure for the project should have been defined and approved in the client's preliminary business case and may include.
- A project director.
- A project board to advise the project director on technical and user matters.
- A project sponsor responsible for day to day liaisons with the consultant team and independent client advisers.
- Champions (perhaps heads of departments) to take responsibility for the quality of the project.
- User panels to bring experience to briefing and design workshops.
- Project stakeholders to be consulted during the early stages of the project.
[edit] Preparing an initial strategic brief.
The client develops the statement of need into an initial strategic brief which provides sufficient information about the project to allow the appointment of a consultant team who will carry out feasibility studies and options appraisals, prepare a project brief and design the development.
The initial strategic brief may include the identification of potential sites for the development. It should be noted that for particularly large projects, an environmental impact assessment may be required by the local planning authority and that this may include an assessment of alternative sites for the development. It is important to consider this when assessing potential sites. Identifying possible sites, and considering their impacts (such as the possibility of moving staff) can be a complicated process and may require the appointment of independent client advisers (such as surveyors).
The client undertakes risk assessment and value management exercises, sets an initial budget for the project and considers funding options for the project. They may then revise the preliminary business case and strategic brief.
[edit] Assessing whether there is sufficient justification to progress to the next stage.
The client considers the preliminary business case and strategic brief and decides whether to proceed to the next stage where the consultant team will be appointed, feasibility studies undertaken, and options assessments carried out.
Featured articles and news
OpenUSD possibilities: Look before you leap
Being ready for the OpenUSD solutions set to transform architecture and design.
Global Asbestos Awareness Week 2025
Highlighting the continuing threat to trades persons.
Retrofit of Buildings, a CIOB Technical Publication
Now available in Arabic and Chinese aswell as English.
The context, schemes, standards, roles and relevance of the Building Safety Act.
Retrofit 25 – What's Stopping Us?
Exhibition Opens at The Building Centre.
Types of work to existing buildings
A simple circular economy wiki breakdown with further links.
A threat to the creativity that makes London special.
How can digital twins boost profitability within construction?
The smart construction dashboard, as-built data and site changes forming an accurate digital twin.
Unlocking surplus public defence land and more to speed up the delivery of housing.
The Planning and Infrastructure Bill
An outline of the bill with a mix of reactions on potential impacts from IHBC, CIEEM, CIC, ACE and EIC.
Farnborough College Unveils its Half-house for Sustainable Construction Training.
Spring Statement 2025 with reactions from industry
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.