Detailed Business Case: PRINCE2 Application for Luton Residences

This document presents a business case for the Luton Town Residences project, utilizing the PRINCE2 methodology. The project aims to address corporate social responsibility by providing housing solutions for vulnerable individuals in Luton. It examines various business options, including the construction of general-purpose and supported housing, with expected benefits primarily focused on enhancing the organization's CSR profile. Potential dis-benefits include high initial investment and challenges in managing diverse functional teams. The project timeline is estimated at 26 months, with costs associated with human resources and finance. Investment appraisal highlights potential challenges in ROI and cash flow but emphasizes the project's positive impact on addressing homelessness. Major risks identified include labor shortages, productivity issues, health and safety hazards, subcontractor performance, and change orders. The business case underscores the importance of aligning the project with corporate strategy, clearly identifying benefits, and addressing potential risks to ensure successful project outcomes.

<Insert Project Name> Created/updated 01/09/24
PRINCE2™- Business Case
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Business Case <Insert Project Name> Created/updated 01/09/24
Overview
Purpose A Business Case is used to document the justification for the undertaking of a
project, based on the estimated costs (of development, implementation and
incremental ongoing operations and maintenance costs) against the
anticipated benefits to be gained and offset by any associated risks.
The outline Business Case is developed in the Starting up a Project process
and refined by the Initiating a Project process. The Directing a Project process
covers the approval and re-affirmation of the Business Case.
The Business Case is used by the Controlling a Stage process when assessing
impacts of issues and risks. It is reviewed and updated at the end of each
management stage by the Managing a Stage Boundary process, and at the
end of the project by the Closing a Project process.
Contents The Business Case should cover the following topics.
Executive Summary..................................................................................................3
Reasons.................................................................................................................... 3
Business Options......................................................................................................4
Expected Benefits.....................................................................................................4
Expected Dis-benefits...............................................................................................4
Timescale..................................................................................................................4
Costs.........................................................................................................................5
Investment Appraisal.................................................................................................5
Major Risks...............................................................................................................5
Advice The Business Case is derived from the: Project mandate and Project Brief –
reasons; Project Plan - costs and timescales; The Senior User(s) - expected
benefits; The Executive - value for money; Risk Register and Issue Register.
The Business Case can take a number of formats, including: Document,
spreadsheet or presentation slides; Entry in a project management tool.
The following quality criteria should be observed:
 The reasons for the project must be consistent with the corporate or
programme strategy
 The Project Plan and Business Case must be aligned
 The benefits should be clearly identified and justified
 It should be clear how the benefits will be realized
 It should be clear what will define a successful outcome
 It should be clear what the preferred business option is, and why
 Where external procurement is required, it should be clear what the
preferred sourcing option is, and why
 It should be clear how any necessary funding will be obtained
 The Business Case includes non-financial, as well as financial, criteria
 The Business Case includes operations and maintenance
costs and risks, as well as project costs and risks
 The Business Case conforms to organizational accounting
standards (e.g. break-even analysis and cash flow
conventions)
 The major risks faced by the project are explicitly stated,
together with any proposed responses.
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Business Case <Insert Project Name> Created/updated 01/09/24
Executive Summary
(Highlight the key points in the Business Case, which should include important benefits
and the return on investment (ROI))
Reasons
The reason that would urge a project manager to undertake the Luton Town Residences
project is because of the corporate social responsibility that is being focused with this
particular project. The mission of this project is to have a developed project for providing
solution to the vulnerable individuals and supporting them with the housing solution in their
local community.
The business objective is looking forward to have a CSR enabled outcome that enables the
betterment of the society.
Business Options
The aspects of the different constructions that is about to be delivered as the part of the
project has several areas where the base business options need to perform something. This
generally would be in accordance to the building of the General Purpose Housing and the
Supported Housing structures.
Expected Benefits
The expected outcomes of the construction project for the residency is known mostly looking
forward to implement a general purpose housing and supporting housing for managing the
distinct housing blocks. The expected benefit is mostly for building up corporate social
responsibility for various locations across Luton. The Luton town residences would be
comprising of emergency hospitals for single young people, transitional flats for old living care
and hostels for young mothers ageing from 16 to 25. The corporate benefits that the
organisation would claim would come from the CSR activities.
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Business Case <Insert Project Name> Created/updated 01/09/24
Expected Dis-benefits
The dis-benefits that might be expected from this project would be the amount of investment
in the first place that is going to be implemented for the general purpose housing department
as the tracking and managing of issues within the only area would be run with the help of
separate distinct functional teams. For this the appropriate housing local community would
requires a huge amount of investment which would not be given back till the return of
investment is required by infiltrating the Housing Society with required set of people.
Timescale
The human resource team and the finance maintenance investments made on the
project would require a minimum of 26 months to complete the entire project from the
project initiation phase to the project closure phase.
Costs
( A summary of the project costs (taken from the Project Plan), the ongoing operations and
maintenance costs and their funding arrangements)
Investment Appraisal
With the benefits and shortcomings of the project extracted from the project plan, the
return of investment and the cash flow statement might be a problematic situation but
the project can be funded with the help of the corporate social responsibility that the
project is focusing on. It would have a huge impact on the people who are looking
forward to finding a feasible place to stay and are often regarded as homeless because
of low finances for renting or buying a home.
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Business Case <Insert Project Name> Created/updated 01/09/24
Major Risks
The four risk factors that has been found in this particular construction project if the shortage
of labour and productivity issues coma the health and safety hazards, the sub-contractor
performance and the changing of orders.
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