the guideline When should I use this guideline? This guideline may support activities undertaken at all stages of the investment lifecycle as uncertainty can impact all aspects of infrastructure development and delivery through to asset operation. Who should use this guideline? Your function Your responsibility The guideline can help you: Investor/Senior Directing an investment through its Identify potential uncertainty impacting your Responsible development and delivery, project, including the trigger points that indicate Owner (SRO) approving/recommending changes to when a different action may be required. budget, time and scope where Identify strategies to allow you to respond flexibly necessary. to uncertainty realised during project delivery Leading project governance activities. and/or the asset’s operational life. Delivering the project benefits, Exercise actions to allow you to respond managing an asset through its advantageously to any changing conditions. operational life and achieving Manage stakeholder expectations regarding ongoing service delivery project delivery and exercising options. requirements. Business case Planning and developing a full Understand real options analysis and associated writer business case for investments of all real options valuation techniques, and manage sizes and types. consultancies to develop real options analysis. Cost and analyse options incorporating real options analysis required. Build real options trigger points and strategic planning requirements into project plan and procurement strategy. Project/Program Manage an investment through Reflect real options requirements in project Delivery Team delivery within approved budget, time planning, procurement and contract and parameters. documentation. Consider real options requirements in tender assessment, decisionmaking processes and contract negotiations. Manage investment delivery through uncertainty, monitoring conditions and triggers, and using approved options to respond advantageously to changing circumstances. Ensure the of real options identified in the business case is realised, as appropriate.
the guideline When should I use this guideline? This guideline may support activities undertaken at all stages of the investment lifecycle as uncertainty can impact all aspects of infrastructure development and delivery through to asset operation. Who should use this guideline? Your function Your responsibility The guideline can help you: Investor/Senior Responsible Owner (SRO) Directing an investment through its development and delivery, approving/recommending changes to budget, time and scope where necessary. Leading project governance activities. Delivering the project benefits, managing an asset through its operational life and achieving ongoing service delivery requirements. Identify potential uncertainty impacting your project, including the trigger points that indicate when a different action may be required. Identify strategies to allow you to respond flexibly to uncertainty realised during project delivery and/or the asset’s operational life. Exercise actions to allow you to respond advantageously to any changing conditions. Manage stakeholder expectations regarding project delivery and exercising options. Business case writer Planning and developing a full business case for investments of all sizes and types. Understand real options analysis and associated real options valuation techniques, and manage consultancies to develop real options analysis. Cost and analyse options incorporating real options analysis required. Build real options trigger points and strategic planning requirements into project plan and procurement strategy. Project/Program Delivery Team Manage an investment through delivery within approved budget, time and parameters. Reflect real options requirements in project planning, procurement and contract documentation. Consider real options requirements in tender assessment, decisionmaking processes and contract negotiations. Manage investment delivery through uncertainty, monitoring conditions and triggers, and using approved options to respond advantageously to changing circumstances. Ensure the of real options identified in the business case is realised, as appropriate.
Investing%20under%20uncertainty%20-%20real%20options%20ILG%20technical%20supplement%20-%20Version%201%20June%202018.docx