Project assessment framework

Keeping major projects on track is critical to obtain maximum value for money for the government’s investment, and to deliver the services Queenslanders need. Queensland’s Project Assessment Framework (PAF) is used across government to ensure a common, rigorous approach to assessing projects at critical stages in their lifecycle, from the initial assessment of the service required, through to delivery. The PAF’s application is not limited to infrastructure projects or public private partnership (PPP) projects. At each stage of a project, the project’s progress and quality is assessed to ensure that the project (and associated investment) meets strategic objectives and achieves value for money. Once a project ‘clears’ a particular stage, it can progress to the next. The Treasury Commercial Group manages the PAF and works with agencies to ensure consistent application.

The PAF suite of documents

The PAF provides tools and techniques to assess projects throughout the project lifecycle. The PAF consists of the following documents:

• Policy overview (PDF 2 M)
• Strategic assessment of service requirement (PDF 463 K)
• Preliminary evaluation (PDF 573 K)
• Business case development (PDF 593 K)
• Supply strategy development (PDF 663 K)
• Source supplier(s) (PDF 931 K)
• Establish service capability (PDF 666 K)
• Deliver service (PDF 615 K)
• Benefits realisation (PDF 471 K).

The PAF is supported by the following supplementary guidance material:

• Cost-benefit analysis (PDF 917 K)
• Alliance establishment and management (PDF 602 K)
• Value creation and capture guidelines (PDF 790 K).

Related policy documents include:

• Queensland public private partnership supporting guidelines (PDF 895 K)

Agencies will also be bound by other applicable legislation, standards, frameworks, policies and guidelines. The PAF does not aim to stipulate the requirements for each individual agency, and this must be determined on a case by case basis by each agency.

An overview of the government project environment including legislation, frameworks, policies and guidelines can be found in the Policy Overview section of the PAF.

The following section contains a summary of select legislation, standards and frameworks only.

Financial and Performance Management Standard 2019 and Financial Accountability Act 2009

The Financial and Performance Management Standard 2019 (FPMS) provides a framework for a department’s accountable officer or a statutory body to achieve reasonable value for money by establishing and maintaining systems, practices and controls for the efficient, effective and economical financial and performance management of the department or statutory body. These standards are issued by the Treasurer under the Financial Accountability Act 2009. The FPMS states that departments and statutory bodies must have regard to the PAF in preparing evaluations concerning the acquisition, maintenance or improvement of assets.

Public Private Partnerships

Queensland Treasury’s Commercial Group is responsible for the Queensland Government’s procurement of privately financed major infrastructure projects. Infrastructure Australia, a business unit of the Australian Government, provides comprehensive guidance on the national framework, including guidelines for practitioners, methodologies, specific jurisdictional requirements and commercial principles.

This material provides a clear framework for Queensland and the Australian Government to achieve maximum results from private sector involvement in major infrastructure delivery.

The government’s position is that private sector involvement in public infrastructure or service delivery should be encouraged where it can be shown that the state will achieve better value for money through involving the private sector, compared with delivering the project or service entirely at the public sector’s cost and risk.

This has included supplementing the National PPP Guidelines with the Queensland Public Private Partnership supporting guidelines to suit the Queensland context.

Gateway reviews (assurance)

Depending on the capital costs or risk associated with a project, a project’s progress and quality may be assessed via a series of gateway reviews by independent reviewers. These reviews help ensure that the project (and associated investment) meets strategic objectives and achieves value for money.

Once a project ‘clears’ a particular stage, it can progress to the next. Comprehensive guidance material and tools about the gateway process and its application are available to agencies at each stage of the process.