Major schemes process

The Department for Transport's process for considering major schemes for funding is in three stages:

• Programme Entry – making an initial case for the scheme to DfT setting out what the scheme is, what the economic case for the scheme is and how the scheme is planned to be funded and delivered. The submission to DfT is formally referred to as a ‘Major Scheme Business Case’ or is known as a bid.  Approval at this stage indicates DfT’s intention to fund construction of scheme on the basis that there are no significant changes to scheme scope, cost or expected benefits

• Conditional Approval – is applied for once all the necessary statutory powers have been granted for a scheme. This involves obtaining planning permission and other legal consents (for example listed building consents) to build and operate the scheme.  Approval at this stage indicates a firm commitment for funding from DfT subject to no change in scheme costs, design or risks after procurement.

• Final Approval - is applied for once contracts have been agreed to build and operate a scheme and works on the ground are ready to commence and the final price is agreed. Approval at this stage releases funding and allows construction to start.

Find out more on the Department for Transport major schemes web pages 

However even before the first stage there is a ‘scheme options’ process where a number of possible schemes are considered and assessed or appraised.

It is important to emphasis the same appraisal methodology for the 'preferred scheme' but at a much higher level and based on available evidence only (mainly desk-top based) is followed - this is in line with the government's evolving guidance on 'proportionate appraisal’, which tries to reduce the burden on the technical analysis, required for the appraisal process. 

The 'short-list /long-list' is broadly appraised under the following headings:

• A qualitative assessment is undertaken to determine if the scheme being presented is in line with the scheme objectives that have been set out at the outset of the study
• A qualitative assessment is then undertaken to determine the impact of the scheme under the five government goals for 'value for money' i.e. Tackling Climate Change; Support Economic Growth; Promote Equality of Opportunity; Improve Quality of Life; and Better Safety, Security and Health. 

 We try to take account of the various sub-objectives but it is not always possible at this stage as some of the detailed information may not be available - a judgement is therefore required in this case.

With available data - we outline the potential costs for each option and determine whether or not the scheme, as a whole, is affordable.

An initial assessment is then made on the deliverability of the scheme - the complexity of scheme delivery; key delivery agents and any key issues that may affect delivery, including potential public /political objections and/or issues.

 Programme Entry (approx 6 months for approval):

Week 3 – simple ‘compliance check’ to ensure that MSBC is a valid application;

Week 7 – DfT undertakes initial assessment & requests additional information or clarification;

Week 18 – Liaison with DfT and resolution of issues;

Week 26 – DfT provides final decision.

DfT have formal guidance that pre-defines the content and structure of the MSBC:

●Scheme Description;

●Strategic Case;

●Appraisal and Value for Money Case;

●Delivery Case;

●Financial Case;

●Commercial Case.

Strategic case

“ Demonstrate that the scheme is consistent with and will contribute to local, regional, and possibly national, objectives in transport and other relevant areas.”

●A clear indication of the problems that the scheme is designed to address;

●The objectives of the scheme;

●A description of the process by which the scheme came to be identified as the preferred scheme for meeting those objectives;

●How the scheme objectives align with local objectives – particularly the Joint Local Transport Plan; and

●How the scheme objectives align with national, sub-regional and regional objectives – including the RFA.

Appraisal and value for money case

  “ Demonstrate the likely benefits and disbenefits of the scheme against its likely cost.”

Key element of MSBC – provides detailed appraisal of scheme benefits / disbenefits in terms of 5 government goals:

• Tackling Climate Change;
• Supporting Economic Competitiveness & Growth;
• Contributing to Better Safety, Security & Health;
• Promoting Equality of Opportunity; and
• Improving Quality of Life and  Promoting a Healthy Natural Environment.
• Demonstrates that the scheme represents ‘Value for Money’ using standardised technical processes (including traffic modelling & economic appraisal).

Delivery Case

  “ To demonstrate how the promoter will be able to deliver the scheme to time and budget...”

Important to demonstrate that the scheme is deliverable by the local authorities to time and budget;

• The delivery / governance structure is based on sound project management principles;
• A programme for delivery has been developed and clear milestones identified e.g. consultation, public inquiry, detailed design etc;
• All risks to the project have been identified and are being mitigated against as far as possible; 
• Key stakeholders are identified and integrated into project;
• Communications / consultation strategy in place – including results of current public consultation;
• Outline evaluation strategy established to summarise how scheme will be monitored.

Financial case

“ To demonstrate that the scheme is based on sound costings..”

Provide a detailed breakdown of scheme costs – to demonstrate that they are robust by undertaking an independent review;

• To demonstrate that the scheme is affordable within the Regional Funding Allocation;
• To demonstrate that the necessary funding commitments are in place to support the non-DfT funded elements i.e. local contributions from Local Authorities;
• To demonstrate that the Local Authorities are able to bear any ongoing costs for operation and maintenance of the scheme.

Commercial case

To demonstrate a sound procurement strategy...”

• Should indicate what the preferred procurement strategy will be for the scheme – should include an explanation of how and why this has been identified.