Investment appraisal

Investment appraisal should:Capability maturity checklist assessment for project investment appraisal

  • assess the viability of achieving the objectives;
  • support the production of a business case.
Indicators Level 2 attributes


Level 2 capability is concerned with ensuring appraisal supports go/no go decisions with acceptable reliability.

At level 3 there should be consistent principles guiding investment appraisal across the range of complexity.

Stakeholders will be actively involved in determining the criteria for appraisal and all subjective data will be subject to analysis.

The investment appraisal will be regularly reviewed as delivery documentation is updated with progress.

Collect inputs

Stakeholders are informed of the criteria to be appraised.

All objective data is collected. Where subjective data is used it is identified as such and appropriately structured.


Appraisal techniques are adequate for the justification of the work.


The appraisal is communicated to stakeholders as appropriate and is the primary input to go/no go decisions by the sponsor.

Indicators Level 3 attributes
Collect inputs

Stakeholders are involved in determining the criteria to be appraised.

All objective and subjective data are collected. Subjective data is quantified wherever possible.


Appraisal techniques are sophisticated and cover all aspects of the data collected.

Multiple techniques will probably be used to confirm viability from differing perspectives.


The appraisal is continually reviewed throughout the life cycle. There are agreed tolerances for controlling escalation of deviation from baselined appraisal.



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