Introduction

And finally: it all comes together. All ingredients of the Project Execution Plan (PEP) have been discussed so far. But before we go on we still have to assess whether the project as it stands is economically viable. So first let us focus on the last element of the PEP: the economic project evaluation.

In this module we also will link back to the more strategic elements of project management from Module 1 and reflect upon your lessons learned during this course.

Learning objectives

In the final module we still have a number of learning objectives to realize.

The final requirement to get our project approved by the Board is an economic evaluation of the plans and the expected deliverables. Based on the economic outlook, represented by a combination of indicators, the executive board of your company is able to make a business decision on the future of your project. Are we going ahead with it or not? The indicators used vary over industry and market sectors and we will give you a feel for those that fit a specific industry.

The economic evaluation is an essential part of the Project Execution Plan and is the final part of the front end. All the data has been compiled and gathered about the design so the final verdict on the viability of the business case is the last step before a decision can be taken. It is the result of the close cooperation between estimators, schedulers, the project manager, procurement experts, the business developer, the principal, the finance manager and the controller and the executive board. Closer alignment you can’t get!