Control: 3.S.9 Transparent Value/Cost/Risk Trade-offs Made | Integrated Project Management System (IPMS)

Title	Description
Context	To make quality decisions on scope development, it is essential to understand the value/cost/risk trade-offs that can be made. Trade-offs between economic performance and Greenhouse Gas performance should also be understood. Creating a value/cost/risk trade-off staircase including Greenhouse Gas performance is a way to depict the build-up of opportunity value transparently, starting with the minimum technical scope as the base. The staircase promotes discussion on which elements to include in the competitive scope and which to exclude. It also promotes discussion around the trade-off between value measures (e.g. Net Present Value, Investment Ratio, Ultimate Recovery, Greenhouse Gas Performance, etc.). Where the Assess staircase considers the impact of larger risks and uncertainties on value for a wide range of possible concepts, the Select is focused on the range of possible outcomes (i.e. the impact of risks and uncertainties) for a narrower concept range.
Activity	Build and use cost/value/risk trade-off staircases considers including Greenhouse Gas performance to articulate the recommended scope decisions to the Decision Executive (DE) and Decision Review Board (DRB), whilst showing the level of robustness of the selected concept against the Technical, Economic, Commercial, Organisational and Political (TECOP) risks & uncertainties and how the project manages unfavourable outcomes. Use Decision Quality to explicitly demonstrate that sufficient preparation has been undertaken to enable selection of the preferred concept.
Purpose	To ensure the opportunity selects the optimum concept to deliver best value whilst being robust against key risks and uncertainties.
Requirements from other Standards	None
Evidence recorded in	Concept Select Report
Accountability for meeting Control Intent	Front End Development Manager
Phase	Select