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Capital project life-cycle

Project planning is part of the capital investment cycle as set out in the Capital Project Life-cycle. It is concerned with the establishment of the business need and all pre-planning involved in developing a capital project.

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Department of Health Capital Project Life-cycle
 
 Project development process Program planning process Gateway review process
 
  Government policy framework
(Victorian Health Priorities Framework 2012-2022)
 
  |  
  Policy outcomes / objectives  
  |  
  Departmental strategic priorities --- Service strategy  
  |   |  
  |   Asset strategy  
  |   |  
  |   Multi-Year Strategy  
  |   |  
Proposal   Service plan
Throughput / demand identified.
Model of care requirements.
  |  
  |   |  
  Capital benchmarking
(based on desk top analysis)
--- Strategic business case
Needs identification - alignment with strategic objectives.
High level options identified (capital and non-capital).
Indicative costs and timeframe.
--- ----------------- --- Gate 1 - strategic assessment
  --- Forward program    
  |   |  
Planning and evaluation   Scoping and costing   Project initiation   |  
  |   |  
  Planning brief
Indicative project requirements.
  |  
  |   |  
 

Master plan
Identification of facility planning options to meet future business requirements.
Broad scope of works - new vs modification, major service or site issues.

--- Design list  
  |   |  
  Cost plan A
(rate by floor area estimate)
--- Feasibility study
Detailed assessment of capital development options - scope, TEI, timelines.
Preliminary procurement assessment.
  |  
    |  
  Cost plan B
(concept estimate)
---   |  
  |   |  
  Business case   Full business case
Options identified and appraised - affordability, achievability and value for money established.
Costing of preferred option, risk analysis, preliminary financial packaging and project management structure.
--- ----------------- --- Gate 2 - business justification
  --- Asset investment proposals  
  |   |  
  |   Funding approval  
  |  
Delivery   Development   Cost plan C1
(preliminary estimate)
--- Schematic design
Design brief and design sketches of agreed option.
 
  |  
  Cost plan C2
(confirmation of cost estimate)
--- Design development
Completion of design in detail.
 
  | --- ----------------- --- Gate 3 - procurement strategy
  Implementation   Cost plan D
(tender estimate)
--- Documentation
Preparation of tender / construction documentation.
 
   |  
  Tender, evaluate and award --- ----------------- --- Gate 4 - tender decision
  |  
  Construction  
  | --- ----------------- --- Gate 5 - readiness for service
  Commissioning  
  |  
Operation   Asset management --- ----------------- --- Gate 6 - benefits evaluation
  |  
  Post occupancy evaluation