Justification of the stages of research. How to formulate the business case for the project Rationale for conducting
How to write a rationale? How to justify the proposed solution? (10+)
Rationale. Compilation Tips
Consider the rules for compiling justifications. First, we will discuss the general approach, then we will dwell on the particulars related to certain types of justifications.
Before writing a rationale, you need to answer two questions for yourself:
- What do we want to justify? It is necessary to formulate the substantiated idea as briefly and clearly as possible.
- Before whom we want to justify (further I will call these people conditionally "readers"). This is important to understand, since the base on which you need to rely depends on it.
Rationale Structure
Basic statements
First, you need to formulate statements that readers are likely to agree with.
For example, freezing of the water pipe will make the object unusable. The existing pipe laying depth is higher than the freezing depth.
For example, the cost of liquefied gas is half that of motor gasoline, and the consumption per 100 kilometers is the same.
What do we want to justify?
Now you need to give a substantiated statement or concept.
For example, I propose to re-equip the plumbing.
For example, I propose to transfer vehicles to liquefied gas.
Logical chain
Let's build a logical chain
For example, according to statistics, every three to five years in our region there are extremely low temperatures that our water supply system cannot withstand. In case of freezing of the water supply, it will have to be shifted in any case. This will take one to two weeks. At this time, we will not be able to produce products and will lose income.
For example, the cost of installing gas equipment for one car is 40 thousand rubles. The daily mileage of one car is 300 km, and the cost of gasoline is 1000 rubles. in a day. Daily savings will be 500 rubles. The payback period of the project is 80 days.
Supporting materials
For example, in the application, meteorological tables with a minimum temperature for the last 30 years and standards for laying water pipes depending on temperature.
For example, in the application there is a commercial offer from a supplier of gas equipment, safety certificates, data on current fuel costs, materials confirming gas consumption per 100 km.
Objections. Protection
According to the first example, there may be objections:
- The water supply has been in operation for three years and has not frozen.
- High cost of plumbing.
For the second example, there may be objections:
- Gas equipment is unstable at low ambient temperatures
- Lack of gas filling stations along the route of cars.
- Less security.
Here are some explanations for these objections:
First example
- Over the past three years, there have been relatively warm winters. But relatively warm periods are always replaced by extremely cold ones.
- A complete overhaul is not required. It is possible to equip the water supply system with an automatic periodic water run to prevent freezing.
Second example
- It is planned to install equipment that involves switching gasoline / gas. At low temperatures, starting and warming up will be carried out on gasoline.
- The gas filling station is located 10 kilometers away from the route. Refueling will be required every 200 kilometers, that is, the route will be extended by 20 km (to refueling and back). It's 10% and the savings is 50%.
- Standards for gas equipment guarantee its safe operation if the requirements are met.
Conclusions. Draft decision
According to the first example. I propose to make a decision on the installation of an automatic water supply system from freezing.
According to the second example. I propose to make a decision on the conversion of the fleet to gas.
Alternatives
In conclusion, it is sometimes useful to review alternatives to show that they have been analyzed and to point out the advantages of the chosen solution over the alternatives.
Separate types of justifications
There are some standard types of justifications. They differ in the considerations on which decisions are made and in what is justified.
The economic rationale in his simplest form indicates the reason why the respective organization intends to carry out the project. The business case usually includes a discussion of the benefits that the organization can derive from the successful completion of the project, possible alternatives, and the financial analysis to determine investment attractiveness this project.
In practice, especially in the case of large projects or projects involving significant risk to the organization, the business case is often issued as a stand-alone document and attached to the project initiation form. In the case of small and medium projects (which are the most common), the benefits - including savings, cost reduction, the possibility of obtaining additional income etc. can be listed directly in the project initialization form.
A business case is a lot like the analysis we do when we make a large purchase. For example, you are about to buy new car convertibles and are willing to pay no more than $35,000 for it. First you need to find out which of the automakers make convertibles and which can fit into your price range (from a project management point of view, you are considering alternatives).
You then determine the vehicle specifications you want and negotiate the final price with the distributor (from a project management perspective, you determine the benefits of those specifications). You can also consider financial alternatives and decide which interest rate and payment type suits your budget.
If you are primarily interested in total amount that you will have to pay for this car (including interest payments), then you should choose the payment option with the lowest interest rate that can be found. But if the amount matters to you monthly payments, then when looking for all the same options with the lowest interest rate, you should give preference to those whose conditions allow you to stretch payments for as long as possible. The business case considers similar factors.
Business Case Elements
There are no hard and fast rules for documenting the business case. Typically, you are trying to determine the tangible results of doing (or not doing) a given project. By tangible, we mean “measurable”—cost savings, increased productivity or capacity, increased revenue, increased market share held by the company, and so on. In the process of communicating with the people who are interested in your project, you can find out what is most important to them.
The list below will give you some idea of the types of material elements that you need to keep in mind when determining the business case for a project. Not all of these elements need to be documented for every project; however, the more complex the project and the greater the risk it poses to your organization, the more of these elements you need to include in your business case:
- saving;
- cost reduction;
- opportunities for additional income;
- increase in the market share owned by the company;
- customer satisfaction;
- analysis cash flows.
The cash flow analysis is documented as part of the business case for the respective project. The purpose of this review is to help reviewers (or committees) select projects that are suitable for implementation. We will look at several methods of cash flow analysis in the article on "Project Selection Criteria". In addition to measurable elements, the business case should also include intangible elements, including possible, albeit unplanned, costs to the organization. The list below contains a number of examples of this kind:
- transition costs;
- operating costs;
- changes in business processes;
- personnel changes;
- recurring benefits.
Other Business Case Considerations
In addition to cost, benefit and cash flow analysis, the business case needs to consider alternative solutions or methods of practical implementation of the respective project. For example, there are thousands of vendors offering millions of products that can do x, y, and z, but each one comes at a price. Is, for example, turnkey solution offered for $2 million better than an alternative solution that is partly outsourced and partly implemented in-house by the organization?
Questions of this kind often have to be considered in economic justification. Each of alternatives must include both tangible and intangible elements listed in the previous section. The economic justification should be completed with certain conclusions and recommendations. If the business case is properly prepared and documented, it speaks for itself. However, in any case, it would be useful to indicate which alternative is best for your organization.
The business case can be prepared by the custodian or project leader, depending on the culture of the organization concerned. However, regardless of who prepares the business case for the project, it is the custodian who is responsible for its financial performance, while the manager is responsible for the successful planning, execution and practical implementation. Figuratively speaking, the manager monitors the correct execution of the project form, but fills the content (investments) in this form with the guardian, on which, in the end, the amount of profit provided by the final product (or result) of this project depends.
In the course of the current financial and economic activities, the institutions of law enforcement agencies, in order to maintain the normal technical and operational characteristics of the buildings and structures assigned to them, carry out current and major repairs, and sometimes reconstruction and construction of new fixed assets. Let's talk about what institutions should pay attention to when carrying out repair work.
Conceptual apparatus
Before proceeding directly to the repair work, the institution should determine what type of work will be performed: major (current) repair or reconstruction. Indeed, in case of incorrect qualification of work and payment of the wrong type of expenses, the institution can be held liable for misuse of funds.
For this, it is necessary to refer to the regulatory legal acts regulating activities in the field of construction, since the current accounting and tax law does not contain definitions of these concepts.
In accordance with paragraph 3.8 of MDS 81-35.2004, the overhaul of buildings and structures includes work on the restoration or replacement of individual parts of buildings (structures) or entire structures, parts and engineering equipment due to their physical wear and tear and destruction with more durable and economical, improving their performance.
For reference: preventive (current) repair consists in systematic and timely work carried out to prevent wear of structures, finishes, engineering equipment, as well as work to eliminate minor damage and malfunctions.
In the course of the analysis of the above definitions, it can be concluded that only minor work can be carried out during current repairs, therefore, all major work must be carried out with overhaul. For example, a partial repair of a roof, taking into account the insignificance of material and labor costs, will be a current repair, and a complete change or replacement of all types of roofing will be a capital one.
According to clause 3.4 of MDS 81-35.2004, during the reconstruction (reconstruction) of existing workshops of the enterprise and objects of the main, auxiliary and service purposes, as a rule, without expanding the existing buildings and structures of the main purpose, associated with improving production and raising its technical and economic level and carried out under a comprehensive project for the modernization of the enterprise in order to increase production capacity, improve quality and change the range of products, mainly without increasing the number of employees while improving their working conditions and environmental protection, the following activities can be carried out:
- expansion of individual buildings and structures of the main, ancillary and service purposes in cases where new high-performance and more advanced equipment in terms of technical indicators cannot be placed in existing buildings;
- construction of new and expansion of existing workshops and utility and service facilities;
- construction on the territory of the existing enterprise of new buildings and structures of the same purpose to replace the liquidated ones, the further operation of which, according to technical and economic conditions deemed inappropriate.
Thus, if an institution plans to replace the roof covering, this will be recognized as a repair (current or major), and if it wants to equip offices in the attic or build an attic on the roof, then these works will already be a reconstruction.
Note that there are similar norms in the Urban Planning Code.
The list of the main works carried out during the current and major repairs in relation to objects of the socio-cultural sphere is given in VSN 58-88 (p), and in relation to objects production area- in MDS 13-14.2000.
In accordance with clause 1.1 of VSN 58-88 (r), this provision applies to communal and socio-cultural facilities, regardless of the form of ownership. According to Appendix B to SP 118.13330.2012 “Public buildings and structures. Updated version of SNiP 31-06-2009, approved by the Order of the Ministry of Regional Development of the Russian Federation of December 29, 2011 No. 635/10, public buildings and premises include:
- buildings and structures for facilities serving the population;
- buildings of facilities for servicing society and the state (in particular, the buildings of courts and the prosecutor's office, as well as law enforcement organizations (police, customs)).
Note: the list of additional works carried out during the overhaul is given in Appendix 9 to VSN 58-88 (p).
According to clause 5.1 of VSN 58-88 (r), a major overhaul should include the elimination of malfunctions of all worn-out elements, restoration or replacement (except for the complete replacement of stone and concrete foundations, load-bearing walls and frames) them into more durable and economical, improving the performance of buildings under repair. At the same time, an economically viable modernization of a building or facility can be carried out: improving the layout, increasing the number and quality of services, equipping with the missing types of engineering equipment, landscaping the surrounding area.
When reconstructing buildings (objects), based on the prevailing urban planning conditions and current design standards, in addition to work performed during major repairs, the following can be carried out:
- changing the layout of the premises, erecting add-ons, built-ins, extensions, and if there are necessary justifications, their partial disassembly;
- raising the level of engineering equipment, including the reconstruction of external networks (except for backbones);
- improving the architectural expressiveness of buildings (objects), as well as the improvement of adjacent territories.
During the reconstruction of communal and socio-cultural facilities, expansion of existing and construction of new buildings and structures for auxiliary and service purposes, as well as the construction of buildings and structures of the main purpose, included in the complex of the object, may be envisaged to replace those being liquidated.
The list of the main works performed during the current repair is presented in Appendix 4 to VSN 58-88 (p).
Rationale for ongoing work
Particular attention should be paid to the issues of the validity of the repair work. According to paragraph 6 of Art. 55.24 of the Civil Code of the Russian Federation, in order to ensure the safety of buildings and structures during their operation, institutions must provide maintenance of buildings, structures, their operational control and current repairs.
Operational control over the technical condition of buildings, structures is carried out during their operation through periodic inspections, control checks and (or) monitoring the state of foundations, building structures, engineering support systems and engineering support networks in order to assess the state of structural and other characteristics of the reliability and safety of buildings, structures, systems and networks of engineering support and compliance of these characteristics with the requirements of technical regulations, project documentation.
For reference: on the basis of clause 3.2 of VSN 58-88 (r), the inspections carried out are divided into scheduled and unscheduled. In turn, scheduled inspections are divided into general and partial.
During general inspections, the technical condition of the building or the object as a whole, its systems and external improvement are monitored, with partial inspections, the technical condition of individual structures of the premises, elements of external improvement. Unscheduled inspections should be carried out after earthquakes, mudflows, heavy rains, hurricane winds, heavy snowfalls, floods and other natural phenomena that can cause damage to individual elements of buildings and facilities, after accidents in heat, water, power supply systems and when deformations are detected grounds.
Note: general inspections should be carried out twice a year (spring and autumn).
To conduct these inspections, the institution should create a commission, and their results should be reflected in the documents on the registration of the technical condition of the building or object (registers of the technical condition, special cards, etc.). These documents should contain an assessment of the technical condition of the building or facility and its elements, identified faults, their location, the causes that caused these faults, as well as information on the repair work performed during the inspections. Generalized information about the state of a building or object should be reflected annually in its technical passport.
The basis for carrying out repair work should be acts of inspection of property and defective statements (defective acts) (Letter of the Ministry of Finance of the Russian Federation dated 04.12.2008 No. 03-03-06 / 4/94). In order to conduct inspections in the institution, it is necessary to form a commission or appoint responsible persons. It is advisable to show the following information in the defective statement:
- identification data of the fixed asset item (inventory number, brief description object, its location, etc.);
- identified defects and shortcomings;
- a list of necessary works to bring the fixed asset object into working condition;
- signatures of the members of the commission conducting the inspection.
At the same time, in our opinion, it is advisable to approve the forms of documents in accounting policy institutions. As an example, you can use an act on detected equipment defects, which is drawn up in the form OS-16, approved by the Decree of the State Statistics Committee of the Russian Federation dated January 21, 2003 No. 7.
Note: the forms of these documents are not approved. This means that these documents can be drawn up in any form.
Repair work can be carried out both by the employees of the institution (as part of the performance of their official duties), and with the involvement of third-party organizations. Recall that the involvement of a third-party organization must be carried out in accordance with the procedures provided for federal laws dated 05.04.2013 No. 44-FZ “On the contract system in the field of procurement of goods, works, services to meet state and municipal needs” (hereinafter referred to as the Law on the contract system) and dated 18.07.2011 No. 223-FZ “On the procurement of goods, works , services certain types legal entities".
Design and permit documentation
After the institution has decided on the shortcomings that must be eliminated, an estimate for the repair work is drawn up and concluded government contract on the basis of the procedures provided for by the Law on the contract system. Recall that the construction contract should determine the composition and content technical documentation, and it should also be provided which of the parties and in what period must submit the relevant documentation.
The basis for determining the price of a contract for the construction, reconstruction, overhaul or current repair of an object capital construction is an project documentation(including estimated cost works), developed and approved in accordance with the legislation of the Russian Federation.
By virtue of Art. 48 of the Civil Code of the Russian Federation, project documentation is documentation containing materials in text form and in the form of maps (diagrams) and defining architectural, functional, technological, structural and engineering solutions to ensure the construction, reconstruction of capital construction facilities, their parts, overhaul, if during its implementation the design and other characteristics of the reliability and safety of capital construction facilities are affected.
The composition of the project documentation is given in Part 12 of Art. 48 of the Civil Code of the Russian Federation and Decree of the Government of the Russian Federation of February 16, 2008 No. 87 "On the composition of sections of project documentation and requirements for their content." In the event of a major overhaul of capital construction facilities, preparation is carried out separate sections project documentation based on the assignment of the developer or customer, depending on the content of the work performed during the overhaul of capital construction projects.
Note: it should be borne in mind that in the case of current repairs, only an estimate justifying the cost of the work is sufficient.
In accordance with Art. 49 of the Civil Code of the Russian Federation, design documentation for capital construction projects is subject to state expertise. Examination of project documentation is not carried out if construction or reconstruction does not require a construction permit, as well as when this examination is carried out in relation to project documentation for capital construction facilities that has received a positive conclusion from the state examination and is reused, or modifications of this design documentation are not affecting the design and other characteristics of the reliability and safety of objects.
After receiving a positive conclusion from the state expertise, the project documentation is approved by the developer or customer.
According to paragraph 2 of Art. 51 of the Civil Code of the Russian Federation, construction, reconstruction of capital construction facilities are carried out on the basis of a building permit.
Registration of completed works
Recall that payment for the work performed must be carried out in the manner prescribed by the concluded contract. It should be remembered that according to Part 3 of Art. 94 of the Law on the contract system, in order to verify the results provided by the supplier (contractor, performer), provided for by the contract, in terms of their compliance with the terms of the contract, the institution is obliged to conduct an examination. Examination of the results stipulated by the contract may be carried out by the institution on its own, or experts, expert organizations may be involved in its conduct on the basis of contracts concluded in accordance with the Law on the contract system. In the case of repair work, the examination should be carried out in the form of control measurements of the work performed.
Note: in the event that the documents do not fully contain the above information about work in the past, in duplicate work book only the information available in the documents is entered.
The essence of this check is to compare the actually performed volumes of work in kind (at the construction or repair facility) with similar volumes indicated in the acts in the form of KS-2.
The initial documents for carrying out control measurements are:
- acts of work performed in the form of KS-2, which reflects the types and cost of work performed;
- acts on hidden works.
According to part 7 of Art. 94 of the Law on the Contract System, the acceptance of the results of a separate stage of the execution of the contract, as well as the delivered goods, performed work or rendered services, is carried out in the manner and within the time limits established by the contract, and is drawn up by an acceptance document signed by the customer (in the event of creation acceptance committee it is signed by all members of the acceptance committee and approved by the customer), or the customer sends it to the supplier (contractor, performer) within the same time frame writing reasoned refusal to sign such a document.
In practice, there are cases when it is necessary to carry out additional work that was not originally envisaged. It should be remembered that when concluding and executing a contract, changing its conditions is not allowed, except for the cases provided for in Art. 34 and 95 of the Law on the contract system.
In accordance with paragraphs. "b" p. 1 h. 1 art. 95 of the Law on the Contract System, a change in the essential terms of the contract during its execution is possible if, at the suggestion of the customer, the quantity of goods, scope of work or service provided for by the contract is increased by no more than 10% or reduced established by the contract the quantity of goods supplied, the volume of work performed or services rendered by no more than 10%. At the same time, by agreement of the parties, it is allowed to change, taking into account the provisions of the budgetary legislation of the Russian Federation, the price of the contract in proportion to the additional quantity of goods, additional volume of work or service based on the price of a unit of goods, work or service established in the contract, but not more than 10% of the contract price.
When reducing the quantity of goods, volume of work or service provided for by the contract, the parties to the contract are obliged to reduce its price based on the price of a unit of goods, work or service. The price of a unit of additionally delivered goods or the price of a unit of goods in case of a decrease in the quantity of goods supplied by the contract must be determined as the quotient of dividing the original price of the contract by the quantity of such goods specified in the contract.
So, if it is necessary for the customer to increase or decrease the scope of work provided for by the contract (if such a possibility was established by the procurement documentation), during the execution of the contract, it is possible to increase or decrease the scope of work for certain items of the local estimate calculation by no more than 10% based on the price established in the contract units of work. In this case, the total cost of the estimate calculation should be changed in proportion to the additional amount of work, but not more than 10%.
As for the need to perform work not provided for by the contract, in order to carry it out, the institution needs to make a new purchase by competitive methods for determining the supplier (contractor, performer) established by the Law on the contract system.
To reflect operations in the accounting (budgetary) accounting of fixed assets transferred (received) for repairs, an acceptance certificate for repaired, reconstructed and modernized fixed assets (f. 0504103) (hereinafter - the act (f. 0504103)) should be applied .
The act (f. 0504103) contains information on the timing of work under the contract and actually information about the fixed asset and the costs of repair, reconstruction and (or) modernization.
The first copy of the act remains in the institution, the second copy is transferred to the organization that carried out the repair. The act is signed by members of the acceptance committee or a person authorized to accept fixed assets, as well as a representative of the organization ( structural unit), which carried out repairs, reconstruction. It is approved by the head of the organization or a person authorized by him and submitted to the accounting department.
Note: if the repair is performed by a third-party organization, the act is drawn up in two copies.
If the repair work is carried out by the employees of the institution in accordance with their official duties, costs are documented in the following unified forms of primary documentation:
- consumption of materials - an act on the write-off of inventories (f. 0504230);
- labor costs - by the timesheet (form 0504421), settlement and payroll (form 0504401, 0504403).
The result of work on the repair of an item of fixed assets that does not change its value, including the replacement of elements in a complex item of fixed assets (in a complex of structurally articulated items that are a single whole), is subject to reflection in the register accounting – inventory card accounting for an object of non-financial assets (f. 0504031) of the corresponding object of fixed assets by making entries on the changes made without reflecting in the accounting accounts (clause 27 of Instruction No. 157n).
The write-off of inventories used in the course of the work, acquired by the customer independently and transferred to the performer (contractor), is drawn up by an act of write-off of inventories, which is drawn up on the basis of the list of materials used during the work, indicated in the act of acceptance and delivery of repaired, reconstructed, modernized fixed assets .
In conclusion, we note once again that during the repair work, the out-of-service parts and parts are replaced with new ones, while the functions of the fixed asset do not change, that is, such a replacement does not expand and does not increase the capabilities of the fixed asset and does not improve its technical characteristics. In the course of the reconstruction, the initially adopted normative performance indicators are improved (increased). The cost of reconstructing a fixed asset after its completion increases original cost such an object.
With the beginning of the procedure for substantiating public procurement (), two new mandatory forms appeared when filling out. Columns No. 8 and 9 are introduced in the accompanying form of the schedule, in which the customer includes information about and the reasons for such a choice.
The need to justify is provided. The bottom line is that it is necessary to show on what basis this or that procedure is chosen, and that the decision meets the requirements of the law. Organs have been created for this function. During their verification, the purchase may be recognized as unreasonable.
Initially, the obligation to justify the chosen method of determining the supplier (contractor, performer) caused many questions among the organizers. There were no clear requirements for completing this column. Therefore, it is worth considering this issue in more detail.
Criteria for choosing a procurement method
The justification for choosing a supplier is a consequence of the correct selection of the method of carrying out the procedure.
Criteria for choosing a procurement method:
- subject and ;
- parameters ;
- optimal timing.
In some cases, the method is based on the requirements established in 44-FZ.
Justification of the chosen method of determining the supplier: electronic auction
A wide list of cases has been established when the customer can conduct. IN without fail This procedure is carried out when:
- it is planned to order goods, works, services that are included in the government List (approved);
- only one criterion for determining the winner is established - the price of the contract.
Justification of the chosen method of determining the supplier: request for quotations
Open competition
In cases where the customer determines the winner according to the criteria better conditions execution of the contract, the order is justified as an open tender.
Limited Entry Competition
Two-stage competition
At the same time, they fall into exceptions and are not consistent with the FAS procurement federal bodies executive power, which compose and implement public policy in the field of defense, management and security, as well as state institutions and state unitary enterprises subordinate to them. The list of such bodies, institutions and enterprises must be approved by a separate Government Decree.
Electronic closed auction
In accordance with Part 2 of Art. 84.1, closed electronic procedures apply in cases that are similar to paper closed auction. At the same time, the same article states that the government may oblige purchases in the form of closed electronic auctions.