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Two Stage Capital Works Approval Process for Australian Government Construction Projects

 

-- This has been superseded by RMG 500 – Commonwealth Property Management Framework. Refer to: http://finance.gov.au/property-management-framework/ --

 

The Two Stage Capital Works Approval Process (Two Stage Process) assists agencies to provide the Australian Government with an appropriate level of oversight, transparency and information when deciding on whether to fund capital works construction projects.

The Guidance for the Two Stage Capital Works Approval Process for Australian Government Construction Projects assists Non-corporate Commonwealth Entities to navigate the Two Stage Process.

The Department of Defence (Defence) maintains a separate Two Stage Approval process for Defence Estate Capital Works. Property leased and owned by the Commonwealth that is located overseas is subject to the Property Framework. The Commonwealth’s overseas owned property estate is managed by the Overseas Property Office (OPO) within the Department of Foreign Affairs and Trade.

The principles and factors described in this Guidance, enable agencies to:

  • make financially sustainable investment decisions throughout the capital works lifecycle;
  • identify the elements to be considered when developing whole-of-life costs for Commonwealth capital works construction projects; and
  • perform balanced and transparent evaluations of investment options through the adoption of cost-benefit analysis and other mechanisms that take into consideration economic, environmental, social, heritage and other relevant issues in their decision making.

Assistance on the Two Stage process is available from PropertyFramework@finance.gov.au.

RMG 502 Guidance for the Two Stage Capital Works Approval Process for Australian Government Construction Projects

This RMG replaces FMG No. 14 Guidance for the Two Stage Capital Works Approval Process for Australian Government Construction Projects.

The Two Stage Capital Works Approval Process (Two Stage Process) assists entities to provide the Australian Government with an appropriate level of oversight, transparency and information when deciding on whether to fund capital works construction projects, complex procurements and land remediation activities.

The revised document contains no change in policy, only updated terminology to ensure consistency with the PGPA Act.

Templates

The following Business Case templates should be used by agencies when undertaking the Two Stage Capital Works Approval Process. The templates present a consistent format for providing technical information essential to a New Policy Proposal.

 

Contact for information on this page: PropertyFramework@finance.gov.au