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Post-Investment Review Template (Capital Project Look-back)

Approval baseline, cost and schedule vs plan, benefits realised, re-appraisal on original basis, NPV bridge, root causes, assumption accuracy, lessons, actions

Фінанси, інвестиції та облікПовнийGreen Book 2026 and Magenta Book (UK public sector, by reference)postinvestmentreview

Як використовувати: Use it 12 to 24 months after go-live to compare a capital project or acquisition with what was approved. Fill the approval baseline first, then re-run the appraisal with actuals on the original valuation date and discount rate. The main pitfall is changing the method in the re-appraisal, which hides whether value was lost to outcomes or to the analysis.

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Post-Investment Review: [Project name]

Post-investment review (PIR, also called post-completion audit or capital project look-back) comparing what a capital project actually cost, when it was delivered and what it achieved with what was approved: original approval baseline, delivery against cost, schedule and scope, benefits realised, financial re-appraisal with an NPV bridge, root causes, accuracy of the original assumptions, lessons, recommendations and close-out. Written as original practice guidance; public bodies in the UK evaluate under HM Treasury guidance (the Magenta Book for evaluation, with the Green Book 2026 edition for appraisal), which is cited by reference only. Replace every [bracketed] value and every row marked Example. This is a document format, not financial, investment, tax, legal or accounting advice.

Document control

FieldValue
Document ID[PIR-YYYY-NNN] Example: PIR-2029-002
Project and capex ID[Name, ID] Example: Leipzig warehouse automation, CAP-002
Baseline documents[Appraisal ID and version; capex request ID and version] Example: APR-2027-002 v1.0; CXR-2027-002 v1.0
Review type[Light check / Full review / Close-out review]
Review period[Go-live to review date] Example: 2028-04-01 to 2029-09-30
Review dateYYYY-MM-DD Example: 2029-10-20
Version[0.1]
Status[Draft / In review / Final]
Owner[@reviewer]
Independence of reviewer[Internal audit / FP&A / Other business unit / Project team]
Approvers/reviewers[@sponsor], [@cfo], [@audit-committee-chair]
Distribution[Approving body of the original request], [project sponsor], [capital allocation committee]
Last updatedYYYY-MM-DD
Classification[Confidential]

Approvals

RoleNameDecisionDate
Reviewer[@name][Issued]YYYY-MM-DD
Project sponsor (management response)[@name][Responses agreed]YYYY-MM-DD
Chief Financial Officer[@name][Accepted]YYYY-MM-DD
Approving body (board or investment committee)[@chair][Noted / Actions approved]YYYY-MM-DD

Revision history

VersionDateAuthorChange summary
0.1YYYY-MM-DD[@name]Data collection and baseline reconstruction
0.5YYYY-MM-DD[@name]Example: Re-appraisal and NPV bridge drafted
1.0YYYY-MM-DD[@name]Example: Management responses added, issued to the board

Contents

1. Summary and overall rating

DimensionApproved (Example)Actual or re-forecast (Example)Rating
Capital costEUR 2,800k (incl. contingency 150)EUR 3,010k (+7.5%)Amber: within tolerance, contingency exhausted
One-off operating costEUR 75kEUR 92kAmber
Go-live2028-01-012028-04-01 (one quarter late)Amber
Savings FY2028EUR 520kEUR 330kRed
Savings FY2029EUR 680kEUR 690k (9 months actual, 3 months forecast)Green
NPV at 9.0% (valuation date 2027)EUR 437.2kEUR 139.6kAmber: still positive
IRR12.66%10.12%Amber: above 9.0% hurdle
OverallAmber: value created, less than approved

Conclusion (Example): the project is delivering its run-rate savings and still clears the hurdle, but about two-thirds of the approved NPV was lost (297.6 of 437.2, 68%), mostly to cost overrun and a one-quarter delay (265.4), with a smaller run-rate shortfall from FY2030 (38.2). The decision to invest was sound on the evidence available in March 2027; the shortfall came from an under-scoped building survey and an installation plan that did not allow for the peak-season freeze. The main lesson for future appraisals is to schedule installation around operational freeze periods and survey the site before ordering.

2. Scope and method of the review

2.1 Questions answered

  1. Was the project delivered to the approved cost, timing and scope?
  2. Are the approved benefits being realised, measured against the recorded baseline?
  3. What is the project's value now, on the original basis and looking forward?
  4. Why did outcomes differ from the plan?
  5. How accurate were the appraisal assumptions, and what should change in the appraisal and delivery process?

2.2 Evidence

EvidenceSource (Example)Checked against
Capital costProject ledger, purchase orders, supplier invoicesGeneral ledger, assets under construction account
One-off operating costCost centre CC-410General ledger
SavingsPayroll, agency invoices, maintenance and energy costs CC-410FY2026 baseline in APR-2027-002 section 11
Operating KPIsWarehouse management reports, quality logSample of daily reports
ScheduleProject plan, acceptance certificatesContract milestones
InterviewsSponsor, project manager, fulfilment director, controller, supplierNotes on file

2.3 Limitations

Example: FY2029 savings include three months of forecast (October to December). Savings are measured as the change in actual cost against the FY2026 baseline adjusted for volume (orders shipped) and wage inflation; volume grew 6% between FY2026 and FY2029, so an unadjusted comparison would understate savings.

2.4 Independence, evidence standards and tone

The value of a post-investment review depends on whether the approving body trusts it. Choose a reviewer who did not prepare the original appraisal or run the project: internal audit, FP&A or the finance lead of another business unit. The project team supplies data and comments on the draft, but the conclusions are the reviewer's. Record the reviewer's independence in Document control, and say plainly if a fully independent reviewer was not available.

Hold the review to the same evidence standard as an audit working paper. Agree costs to the general ledger and the assets under construction account rather than to the project tracker; agree savings to cost-centre actuals, adjusted for volume and price by a method fixed at approval; and support dates with signed acceptance certificates. Where evidence is incomplete, say so in section 2.3 and limit the conclusion accordingly instead of filling the gap with estimates from the sponsor.

Keep the tone factual. The purpose is better decisions, so separate the quality of the decision from the quality of the outcome: a sound decision can still produce a poor result because of an event nobody could reasonably have foreseen, and a careless decision can turn out well by luck. Name processes and assumptions, not people, and give the sponsor the chance to respond in writing before the report goes to the approving body.

2.5 Process

The review follows the same steps for every project, so results can be compared across the capital programme.

3. Original approval baseline

ItemApproved position (Example)Source
Decision and dateBoard approved 2027-04-12 with two conditionsBoard resolution [number]
ScopeConveyors, sortation, pick-to-light, control software, installation, building worksCXR-2027-002 section 3
CapexEUR 2,800k including contingency EUR 150kCXR-2027-002 section 3.2
One-off operating costEUR 75kCXR-2027-002 section 3.2
Working capitalSpare parts EUR 100kAPR-2027-002 ASM-002
Go-live2028-01-01APR-2027-002 ASM-003
Savings profileEUR 520k year 1, EUR 680k year 2, rising about 2% a year to EUR 766k in year 8APR-2027-002 ASM-004
Discount rate9.0%APR-2027-002 section 5
Headline metricsNPV EUR 437.2k, IRR 12.66%, payback 5.08 years, discounted payback 6.96 yearsAPR-2027-002 section 7
ConditionsCON-001 final payment after 30 days stable operation; CON-002 contingency draws above EUR 50k approved by the CFOCXR-2027-002 section 10.3
Supplementary approvalsNone required: overrun within tolerance (lower of 10% or EUR 250k)CXR-2027-002 section 11.2

4. Delivery against cost, schedule and scope

4.1 Cost

Work packageApproved (EUR k) (Example)Actual (EUR k)VarianceCause reference
WP-01 Equipment1,6501,6500Fixed price held
WP-02 Control software and interfaces420520100VAR-003
WP-03 Installation and testing31036555VAR-002
WP-04 Building works180300120VAR-001
WP-05 Internal project management9012535VAR-002
WP-06 Contingency1500(150)Drawn into WP-02 to WP-05 and WP-09
WP-09 Additional safety guarding (not in scope)05050VAR-004
Total capex2,8003,010210+7.5%
One-off operating cost (WP-07, WP-08)759217Extra training days after delay
Spare parts (working capital)10012020Supplier list revised at acceptance

Example checks: actual capex 1,650 + 520 + 365 + 300 + 125 + 50 = 3,010. Overruns before contingency: 100 + 55 + 120 + 35 + 50 = 360; contingency 150 absorbed part, net overrun 210. Tolerance was the lower of 10% (280) and EUR 250k, so 250; the overrun of 210 stayed within it.

Cash timing: EUR 2,610k paid in FY2027 and EUR 400k in FY2028, consistent with the deferral reported in Rolling Forecast (finance/rolling-forecast). The supplier invoiced 314 of the 476 acceptance milestone (MS-3) in December 2027 against the completed factory acceptance test; the remaining 162 was paid in Q1 2028 after site acceptance on 2028-03-10, and the retention (MS-4, 238) in Q2 2028 after final acceptance on 2028-05-15 (CON-001). Check: 162 + 238 = 400; 3,010 - 400 = 2,610.

4.2 Schedule

MilestonePlanned (Example)ActualSlip
Order signed2027-04-302027-04-28None
Delivery to site2027-09-302027-10-142 weeks
Site acceptance test2027-12-152028-03-10About 12 weeks
Go-live2028-01-012028-04-01One quarter
Final acceptance (CON-001)2028-02-282028-05-15About 11 weeks

4.3 Scope and quality

Record any scope added or removed and whether the asset meets its specification. Example: contract throughput (9,000 order lines per hour) reached in the performance test on 2028-05-10. Safety guarding (WP-09) was added after the occupational safety inspection. No scope removed. Conditions CON-001 and CON-002 were met: the retention was paid after stable operation, and the two contingency draws above EUR 50k (WP-04, WP-02) carry CFO approval.

4.4 Interpreting delivery variances

Read the cost table at work-package level before looking at the total. A total within tolerance can hide a large overrun in one package offset by an underspend or by contingency; in the example the gross overruns before contingency were 360, almost two and a half times the contingency, even though the net overrun of 210 stayed within the 250 tolerance. Report both figures: the net overrun shows whether the approval limit held, the gross overrun shows how good the estimate was.

Separate three kinds of difference. Scope changes (work added or removed, such as the safety guarding in WP-09) are decisions, and the question is whether they followed the change process. Estimating errors (the building works) show whether the original estimate was robust. Delivery problems (the paused installation) show whether the plan and its controls worked. Each kind leads to a different lesson, so do not net them off against each other.

Treat timing in the same way as cost. A one-quarter delay rarely shows in the capital cost table, yet in the example it cost almost as much NPV (122.0) as the whole capital overrun net of phasing (133.4). Show the approved and actual dates of every milestone and the reason for each slip, and carry the effect into the benefits and the re-appraisal.

5. Benefits realised

Benefit IDMeasureBaselineTargetActual (Example)Status
BEN-001Net operating savings, FY2028EUR 0EUR 520kEUR 330kBehind: late go-live
BEN-001Net operating savings, FY2029EUR 0EUR 680kEUR 690k (9 months actual, Q4 forecast)On track
BEN-002Cost per order, LeipzigEUR 4.60 (FY2026)EUR 3.95 by FY2029EUR 4.02 (FY2029 to September)Close: 0.07 above target
BEN-003Mispick rate0.45% of lines0.15%0.18%Close
BEN-004Peak agency hours61,000 (Q4 2026)Below 15,000 (Q4 2028)22,000 (Q4 2028)Behind: system in first peak

Savings method (Example): baseline cost per order for FY2026 is inflated by actual wage growth and multiplied by actual FY2029 volume; the difference from actual cost, less the maintenance contract and energy increase, is the net saving. Other initiatives at the site (a new carrier contract) are excluded by measuring only cost centre CC-410 labour, agency and equipment lines.

Measure benefits with the method agreed at approval, and apply it consistently. Three adjustments are almost always needed. First, adjust the baseline for volume, because a growing business would have spent more in the do-nothing case; savings measured against an unadjusted baseline are understated in growth and overstated in decline. Second, adjust for input prices such as wage inflation, using the actual rates rather than the planning assumption. Third, isolate the project from other initiatives at the same site, either by measuring only the cost lines the project affects or by estimating the other initiatives' effect separately. Document each adjustment and its source so that the next review can repeat it.

Distinguish run-rate from cumulative benefits. A project can reach its run-rate (the annual saving once everything works as designed) and still be behind on cumulative benefits because it started late, as in the example. The approving body needs both views: the run-rate tells it whether the asset performs, the cumulative figure tells it whether the investment case still holds.

Unplanned benefits and disbenefits: Example: fewer manual-handling injuries (3 reportable incidents in FY2026, none in FY2029 to date); disbenefit: a single control-software supplier now holds a critical dependency (see REC-003).

6. Financial re-appraisal

6.1 Re-appraisal cash flows (valuation date 2027, 9.0%)

YearFYCapex and working capitalPre-tax savingsTax depreciationTax at 30%Net cash flowDF at 9.0%Present valueCumulative PV
0 (Example)2027(2,730.0)0.00.00.0(2,730.0)1.0000(2,730.0)(2,730.0)
1 (Example)2028(400.0)330.0376.2513.9(56.1)0.9174(51.5)(2,781.5)
2 (Example)20290.0690.0376.25(94.1)595.90.8417501.5(2,280.0)
3 (Example)20300.0680.0376.25(91.1)588.90.7722454.7(1,825.2)
4 (Example)20310.0694.0376.25(95.3)598.70.7084424.1(1,401.1)
5 (Example)20320.0708.0376.25(99.5)608.50.6499395.5(1,005.7)
6 (Example)20330.0721.0376.25(103.4)617.60.5963368.2(637.4)
7 (Example)20340.0736.0376.25(107.9)628.10.5470343.6(293.8)
8 (Example)2035225.0751.0376.25(112.4)863.60.5019433.4139.6

Notes on the example:

  • Year 0: capex paid in FY2027 2,610 plus spare parts 120 = 2,730. Year 1 capex 400.
  • Tax depreciation: actual capex 3,010 / 8 = 376.25 a year. Year 1 tax: 0.30 x (330 - 376.25) = -13.9, a tax credit used within the German tax group, so it adds to cash flow: 330 + 13.9 - 400 = -56.1. A full year of tax depreciation is kept in year 1 for comparability with the approved model, although the asset was available for use only from 2028-04-01 and actual German tax depreciation is time-apportioned (9/12 in 2028). The effect on NPV is small; disclose it rather than change the basis.
  • Savings from FY2030 are re-forecast at 98% of the approved profile, rounded to whole EUR thousand, because the run-rate in FY2029 is about 2% below plan on a volume-adjusted basis.
  • Year 8: disposal value 150 less tax 45 = 105, plus spare parts released 120 = 225. Net cash flow 751 - 112.4 + 225 = 863.6 (rounded from unrounded tax).
  • Present values use unrounded factors and agree with the four-decimal factors to within 0.1.

6.2 Metrics: approved versus re-appraisal

MetricApproved (Example)Re-appraisal (Example)Change
NPV at 9.0% (EUR k)437.2139.6(297.6)
IRR12.66%10.12%-2.54 points
MIRR (9.0%)10.93%9.67%-1.26 points
Payback (years from start of FY2027)5.085.64+0.56
Discounted payback (years)6.967.68+0.72

Payback for the re-appraisal: cumulative undiscounted cash flow is -394.2 at the end of year 5, so 5 + 394.2 / 617.6 = 5.64. Discounted payback: 7 + 293.8 / 433.4 = 7.68.

6.3 NPV bridge

StepDriver (Example)Effect on NPV (EUR k)NPV after step
StartApproved NPVn/a437.2
VAR-ACapex 3,010 instead of 2,800, all at year 0(166.4)270.8
VAR-BEUR 400k of capex paid in year 1 instead of year 033.0303.8
VAR-CSpare parts 120 instead of 100(10.0)293.8
VAR-DFY2028 savings 330 instead of 520 (late go-live)(122.0)171.8
VAR-EFY2029 savings 690 instead of 6805.9177.7
VAR-FFY2030 to FY2035 savings at 98% of plan(38.2)139.6
RoundingSteps computed unrounded0.1n/a
EndRe-appraisal NPVTotal (297.6)139.6

The capex steps include the change in tax depreciation that follows from the higher cost.

6.4 Forward-looking view

Sunk costs are irrelevant to decisions still open. Example: at the review date the remaining decisions are whether to add the second sortation loop (real option recorded in APR-2027-002 section 9.2) and whether to extend the software support contract. Volume is about 1.17 million orders a year (6% above FY2026), below the 1.5 million trigger, so the expansion is not yet proposed. The asset shows no impairment indicator: re-forecast cash flows comfortably exceed the carrying amount; the controller confirms this under the group impairment policy.

7. Variance causes

Variance IDVariance (Example)Root causeForeseeable at approval?Category
VAR-001Building works +EUR 120kFloor survey done after order; slab thinner than drawingsYes: survey could have preceded the orderEstimating
VAR-002Installation and project management +EUR 90k; go-live one quarter lateInstallation window overlapped the peak freeze from 2027-11-01; works paused for six weeksYes: freeze dates were knownPlanning
VAR-003Software and interfaces +EUR 100kGroup warehouse management system release changed the interface specificationPartly: release known, scope notDependency
VAR-004Safety guarding +EUR 50kInspection required guarding not in the supplier designPartlyScope
VAR-005FY2028 savings EUR 190k shortConsequence of VAR-002 (late go-live) and slower first peak (BEN-004)Yes, through RSK-001Benefits

8. Accuracy of the original assumptions

AssumptionApproved (Example)Actual or re-forecastErrorWithin sensitivity range tested?
ASM-001 Capital costEUR 2,800kEUR 3,010k+7.5%Yes (tested +10%)
ASM-002 Spare partsEUR 100kEUR 120k+20%Not tested
ASM-003 Go-live2028-01-012028-04-01+3 monthsNo: no delay scenario was run
ASM-004 Savings, year 1EUR 520kEUR 330k-36.5%No: tested -20% on all years
ASM-004 Savings, year 2EUR 680kEUR 690k+1.5%Yes
ASM-005 Tax rate30%30%0Yes
ASM-009 Discount rate9.0%9.0% (unchanged for comparison)n/an/a

Example checks: 210 / 2,800 = 7.5%; 20 / 100 = 20%; (330 - 520) / 520 = -36.5%; 10 / 680 = 1.5%.

Finding (Example): the appraisal tested cost and savings ranges well, but did not test timing. A one-quarter delay cost almost as much NPV (VAR-D, EUR 122.0k) as the whole capital overrun net of phasing (VAR-A plus VAR-B, EUR 133.4k). Future appraisals should include a delay scenario.

9. Lessons learned

Lesson IDLesson (Example)EvidenceApplies to
LES-001Survey the site and existing structures before signing the main order when building works are neededVAR-001Capex requests with building works
LES-002Plan installation outside operational freeze periods and show the freeze on the project scheduleVAR-002Operations projects
LES-003Include a delay scenario (at least one quarter) in every appraisal with a go-live dateSection 8Investment appraisal guidance
LES-004Freeze interface specifications with dependent IT releases before orderingVAR-003IT-dependent projects
LES-005Measure savings against a volume-adjusted baseline agreed at approvalSection 5 methodBenefits management

9.1 Making lessons stick

Lessons only have value if they change what happens next time. Route each lesson to the document or process it should change: the appraisal template and its guidance, the capex request checklist, the project delivery method, or the benefits tracking routine. Record the change in that document's revision history with a reference to this review, so that a later reader can see why the rule exists.

Look across reviews as well as within them. Keep a simple register of the main variances from every completed review, by project type: cost overrun, delay and benefit shortfall as a percentage of the approved figure. After a few years the register gives evidence-based ranges for sensitivity analysis (for example, typical delay for projects with building works) and shows whether lessons from earlier reviews have reduced the errors they addressed. Present the register to the capital allocation committee once a year.

10. Recommendations and actions

Rec IDRecommendation (Example)OwnerManagement responseDue
REC-001Add a delay scenario and operational-freeze check to the appraisal template and capex checklist[@head-of-fpa]AgreedYYYY-MM-DD
REC-002Require a site survey before order for capex requests with building works above EUR 100k[@facilities-lead]AgreedYYYY-MM-DD
REC-003Negotiate escrow or a long-term support agreement for the control software to reduce single-supplier risk[@procurement]Agreed, by contract renewalYYYY-MM-DD
REC-004Continue monthly tracking of BEN-002 to BEN-004 until FY2030 and report in the monthly management report[@fulfilment-director]AgreedYYYY-MM-DD
REC-005Re-assess the second sortation loop when volume reaches 1.5 million orders a year[@coo]AgreedTrigger based

11. Close-out

ItemStatus (Example)Evidence
Final cost agreed and purchase orders closedDone, 2028-06-30Project ledger
Transfer from assets under construction to fixed asset register by componentDone, 2028-04-01 (available for use)Fixed Asset Register (finance/fixed-asset-register)
Unused contingency releasedNot applicable: fully usedContingency log
Benefit tracking handed to business as usualDone, monthly management report from 2029-11Monthly Management Report (finance/monthly-management-report)
Lessons fed into appraisal guidancePending REC-001Change log of Investment Appraisal guidance
Report presented to approving bodyYYYY-MM-DDBoard minutes [reference]

Sign-off: the sponsor confirms the project is closed and benefits are owned by [@benefit-owner]. Date: YYYY-MM-DD.

12. Glossary and references

12.1 Glossary

TermMeaning in this template
BaselineThe approved position (cost, timing, benefits) against which outcomes are measured
Benefit ownerManager accountable for delivering and reporting a benefit
Forward-looking viewAnalysis of decisions still open, ignoring sunk costs
NPV bridgeStep-by-step reconciliation of the change in NPV by driver
Re-appraisalThe original model re-run with actuals and an updated forecast on the original basis
Root causeUnderlying reason for a variance that, if addressed, prevents recurrence
Run-rateAnnualised level of a benefit once the asset operates as designed
Sunk costCost already incurred that no future decision can change
Volume-adjusted baselineBaseline cost restated for actual volume and input prices, so savings are not overstated or understated by growth

12.2 References

ReferenceVersion or date checkedUse
HM Treasury, The Green Book (gov.uk, Open Government Licence v3.0)2026 edition, updated 2026-02-05; checked 2026-10-25Public-sector appraisal context, by reference
HM Treasury, The Magenta Book (gov.uk, Open Government Licence v3.0)Page last updated 2026-05-15; checked 2026-10-25Public-sector evaluation design, name only
Investment Appraisal (finance/investment-appraisal)This libraryApproved appraisal and method
Capex Request (finance/capex-request)This libraryApproved cost, conditions and tolerances
Business Case (business/business-case)This libraryStrategic objectives and benefits realisation plan
Feasibility Study (business/feasibility-study)This libraryPre-decision feasibility evidence
Variance Analysis (finance/variance-analysis)This libraryMethod for monthly cost variances
Lessons Learned (project/lessons-learned)This libraryGeneric project retrospective format

Standard and licence note

Based on common corporate practice for post-completion review of capital investments and on publicly available UK government guidance (HM Treasury Green Book, 2026 edition, and the Magenta Book, Crown copyright under the Open Government Licence v3.0), cited by reference only; no text from them is reproduced. Corvid Commerce Group, the project and every figure are fictional. This template is original text written for this collection. Check the current official versions of cited guidance before use. Template licence: MIT.

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