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Spelthorne Borough Council |
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Commercial Business Case Guidance and Template Pack |
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Aligned to Spelthorne Commercial Strategy 2026-2028 |
Appendix 1
Contents
01/04/2026 v1
Commercial Business Case Guidance and Template Pack
1. Guidance
How to complete the template, what “good” looks like, and common pitfalls to avoid.
This guidance supports the Spelthorne Commercial Strategy 2026/27 and ensures business cases are complete, compliant, proportionate and auditable. Use alongside the Business Case Template and the Author Checklist.
1. Proposal Overview
• Keep the summary short and outcome-focused.
• Be explicit about type of activity (e.g. procurement vs asset decision).
2. Strategic Alignment
• State which Corporate Plan priorities are supported and how residents benefit.
• Explain link to MTFS (e.g. savings, income, cost avoidance) and any IRP actions.
• Confirm statutory duties supported and any compliance risks mitigated.
3. Applying the Commercial Principles
• Purpose & Outcomes: define SMART benefits.
• Value for Money: present options with total cost, benefits and risks; include benchmarking or quotes where proportionate.
• Capacity & Capability: identify resource needs (skills, time, systems).
• Social Value & Local Impact: use the Social Value model relevant to SBC objectives; specify measurable commitments where possible.
• Insight & Innovation: summarise market engagement, research, or pilot learning.
• Transparency & Ethics: avoid off-contract purchasing; follow CPRs.
4. Commercial Lifecycle
• Always cover Identify→Assess→Plan→Procure→Manage→Review – scale your effort to the value/risk of the proposal.
• Include a simple options appraisal and sensitivity test for key cost drivers.
5. Governance & Assurance
• Costs: include lifecycle costs (set-up, operating, maintenance, exit).
• Risks: complete risk scoring; show mitigations and residual risk.
• Legal/Finance/Procurement: evidence input and approvals required before Committee.
• Technology & Data: engage IT/Data Protection early if systems or personal data are involved.
6. Documentation & Reporting
• Use standard templates; keep an audit trail of analysis, decisions and approvals.
• Store documents in the agreed location and reference them in the case.
7. Procurement & Contract Management
• Define outcome-based specifications; avoid overly prescriptive inputs unless necessary.
• Use evaluation criteria that balance quality and price appropriately.
• Set KPIs that are few, measurable and relevant; include change control, financial checks and exit arrangements.
8. Monitoring & KPIs
• Name the owner for each KPI, data source, frequency and governance route (e.g. quarterly committee report).
9. Transition Readiness (beyond 2027)
• Ensure assets, contracts and liabilities are recorded accurately and that handover documentation is complete.
Common Pitfalls & How to Avoid Them
• No options appraisal or weak VFM case → include at least a do-nothing and preferred option with cost/benefit comparison.
• Missing approvals or late engagement with specialists → involve Legal, Finance and Procurement early.
• Unclear KPIs → define measures before procurement, align to outcomes.
• Hidden costs → include overheads, lifecycle and exit costs.
Quick Reference – Required Attachments
☐ Business case document
☐ Options appraisal & cost model
☐ Risk register (scored)
☐ Sensitivity test
☐ Market insight summary
☐ Procurement documents (route, spec, evaluation)
☐ Contract management plan (KPIs, monitoring, exit)
☐ Transition pack items (register updates, documentation)
Business Case Approval
Proportionate controls apply throughout. Seek early advice from Procurement, Finance and Legal
2. Business Case Template
Version: 1.0 | Date: 12 Mar 2026 | Owner: __________________
1. Proposal Overview
1.1 Proposal Title
(Insert title of proposal / project / purchase / contract decision)
1.2 Lead Officer / Service Area
Lead Officer: ________________________________________________
Group Head/ Service: ________________________________________
Contact Details: _____________________________________________
1.3 Summary of Proposal
Clear, brief explanation — what is being proposed and why?
1.4 Type of Commercial Activity
☐ Invest to Save
☐ Contract Variation / Extension
☐ New Contract
☐ Asset decision (purchase / disposal / investment)
☐ Service change / redesign
☐ Income generation
☐ Other (describe)
2. Strategic Alignment (Key Consideration 1)
2.1 Contribution to Corporate Plan Priorities
Explain how the proposal supports: Residents wellbeing; Addressing Housing Need, Safe and reliable services; Financial resilience; Environmental responsibility; Strong communities.
2.2 Alignment with Medium-Term Financial Strategy (MTFS) and Improvement and Recovery Plan (IRP)
How does this proposal support financial sustainability and/or required IRP actions? What pressures or risks does it mitigate?
Alignment with Local Government Reorganisation objectives?
How does this proposal align with LGR objectives and ensure a safe and legal transition?
2.3 Statutory Duties
Does this proposal support or protect statutory services? Could it negatively impact statutory compliance?
Mandatory Check
☐ Have you demonstrated and evidenced alignment with the Corporate Plan, MTFS, IRP and statutory duties?
3. Application of Commercial Principles (Key Consideration 2)
3.1 Purpose & Outcomes
What clear benefit does the proposal deliver? How does it improve services or outcomes for residents?
3.2 Value for Money
Options appraisal and comparison; best balance of cost, quality and social value. Business case attached?
3.3 Consistency
Has a consistent approach been used (templates, tools, processes)?
3.4 Capacity & Capability
Do we have the skills, resources and capacity to deliver this proposal?
3.5 Social Value & Local Impact
Will it support local businesses, local employability, environmental impact?
3.6 Insight & Innovation
What market intelligence, benchmarking or research has been used?
3.7 Transparency & Ethics
Is the approach compliant with procurement rules and ethical standards?
Mandatory Check
☐ Have you evidenced how each applicable commercial principle has been applied?
4. Commercial Lifecycle Evidence (Key Consideration 3)
4.1 Identify
What need, problem or demand is being addressed?
4.2 Assess
Options appraisal, SWOT analysis, sensitivity testing, impact assessment.
4.3 Plan
Delivery plan, dependencies, procurement route, key milestones.
4.4 Procure
Procurement route justification, market testing evidence, evaluation criteria, supplier selection summary (if relevant).
4.5 Manage
Contract management arrangements, KPIs, escalation routes, risks and mitigations.
4.6 Review
How will performance be reviewed? Continuous improvement approach.
Mandatory Check
☐ Have you applied and evidenced all relevant stages of the lifecycle?
5. Governance & Assurance (Key Consideration 4)
5.1 Legal Implications
Confirm legal advice sought; key legislative issues.
5.2 Financial Implications
Full-cost understanding (including lifecycle, overheads, exit costs); budget availability; ongoing commitments; savings/income projections.
Attach: Full-cost model; Financial assessment; Sensitivity analysis; Funding source confirmation.
5.3 Risk Assessment and Assurance
Completed risk scoring (per Council methodology); top risks and mitigations.
5.4 Technology & Data Implications
System changes required? Data governance issues (security, sharing, GDPR)?
5.5 Oversight Required
State required approvals: Group Head, MAT, Committee, Statutory officers, Others.
Mandatory Check
☐ Have you demonstrated compliance with governance requirements (risk scoring, cost understanding, legal/financial assurance, technology/data considerations)?
6. Documentation & Reporting (Key Consideration 5)
6.1 Toolkit & Templates Used
List documents attached: Business case, SWOT, Risk analysis, Sensitivity testing, Market insight, Contract management checklist, Procurement docs, Other.
6.2 Audit Trail
Record of rationale, analysis and approvals; storage location.
Mandatory Check
☐ Have you used the required toolkit/templates and provided a complete audit trail?
7. Procurement & Contract Management (Key Consideration 6)
7.1 Procurement Compliance
Approved route selected and justified; CPR and Public Contracts Regulations compliance confirmed.
7.2 Contract Specifications
Outcome-based specifications; quality and cost evaluation methodology.
7.3 Supplier Analysis
Market engagement outcomes; supplier scoring summary.
7.4 Contract Management Plan
KPIs, performance monitoring, change control, exit/termination arrangements.
Mandatory Check
☐ Have you followed procurement rules and planned for effective contract management?
8. Monitoring, KPIs & Performance (Key Consideration 7)
8.1 Measures of Success
KPIs: Financial performance; Social value outcomes; Risk indicators; Compliance rates; Delivery milestones.
8.2 Monitoring Arrangements
Who will monitor; frequency; reporting route.
Mandatory Check
☐ Have you defined measurable KPIs and monitoring arrangements?
9. Transition Readiness (Key Consideration 8)
9.1 Asset, Contract & Liability Registers
Confirm inclusion of any assets, contracts or liabilities affected.
9.2 Documentation Standards
Are all materials transition-ready? Is continuity assured beyond 2027?
Mandatory Check
☐ Are registers up to date and documentation transition-ready?
10. Final Recommendation
Proceed / Not Proceed / Proceed with Modifications (provide rationale)
11. Appendices
Attach cost models, risk assessments, market analysis, procurement documents, asset information, KPI frameworks, equality/environmental assessments, and technical reports.
3. Business Case Checklist
Use this one-page checklist to confirm your case is complete and compliant.
Strategic Alignment
☐ Evidence alignment with Corporate Plan, MTFS, IRP and statutory duties is provided.
☐ Yes ☐ No Evidence: _________________________
☐ Impacts on residents, services and financial resilience are described. ☐ Yes ☐ No Evidence: _________________________
Commercial Principles Applied
☐ Purpose & outcomes are clear and measurable. ☐ Yes ☐ No Evidence: _________________________
☐ VFM evidenced via options appraisal / benchmarking. ☐ Yes ☐ No Evidence: _________________________
☐ Capacity & capability to deliver are confirmed. ☐ Yes ☐ No Evidence: _________________________
☐ Social value and local impact considered. ☐ Yes ☐ No Evidence: _________________________
☐ Transparency & ethics – procurement rules followed. ☐ Yes ☐ No Evidence: _________________________
Commercial Lifecycle
☐ Identify → Assess → Plan → Procure → Manage → Review steps evidenced proportionately. ☐ Yes ☐ No Evidence: _________________________
Governance & Assurance
☐ Risk scoring completed; top risks mitigated. ☐ Yes ☐ No Evidence: _________________________
☐ Full-cost model and sensitivity analysis attached. ☐ Yes ☐ No Evidence: _________________________
☐ Legal, finance, procurement inputs obtained. ☐ Yes ☐ No Evidence: _________________________
☐ Technology & data implications addressed. ☐ Yes ☐ No Evidence: _________________________
☐ Approvals/oversight route stated. ☐ Yes ☐ No Evidence: _________________________
Documentation & Reporting
☐ Required templates/tools used. ☐ Yes ☐ No Evidence: _________________________
☐ Complete audit trail and storage location confirmed. ☐ Yes ☐ No Evidence: _________________________
Procurement & Contract Management
☐ Approved procurement route justified. ☐ Yes ☐ No Evidence: _________________________
☐ Outcome-based specification and evaluation method set. ☐ Yes ☐ No Evidence: _________________________
☐ Contract management plan (KPIs, monitoring, exit) included. ☐ Yes ☐ No Evidence: _________________________
Monitoring & KPIs
☐ KPIs defined with data sources and reporting frequency. ☐ Yes ☐ No Evidence: _________________________
Transition Readiness
☐ Registers updated; documentation complete and transition-ready. ☐ Yes ☐ No Evidence: _________________________
Sign-off
Author: ____________________ Date: _____________
Group Head: ________________ Date: _____________
Finance: ____________________ Date: _____________
Procurement: ________________ Date: _____________
Legal: ______________________ Date: _____________
MAT: _______________________ Date: _____________
Committee (if applicable): ____ Date: _____________