Multi-criteria analysis (MCA) is a tool that can be used to compare and refine investment proposals. When applied consistently and transparently, it is a suitable approach for filtering options before applying more detailed quantitative analysis, or to compare options where impacts are not easily quantifiable. 

Multi-criteria analysis is a form of appraisal that measures variables such as material costs, time savings and project sustainability as well as the social and environmental impacts in addition to monetary impacts. 

Infrastructure Australia’s Multi Criteria Analysis is currently only performed on projects to be considered for inclusion on the Infrastructure Priority List. 

The Assessment Framework is divided into four stages: 

• Stage 1 – Defining problems and opportunities – building a strong evidence-base to fully understand the scale and breadth of problems and opportunities.  

• Stage 2: Identifying and analysing options – identify, analyse and filter options to respond to the problems and opportunities you identified in Stage 1. Identify a comprehensive longlist of options, and then demonstrate how you have applied a robust options analysis process to filter this to a shortlist of options. This will save on investing resources in developing unpromising options in your business case during Stage 3. 

• Stage 3 – Developing a business case – document the outcomes of Stage 1 and Stage 2 in a business case, articulating the detailed options analysis process undertaken, the merit of the preferred option and the deliverability considerations of the proposal. 

• Stage 4 – Post completion review – this is to demonstrate whether the project achieved its intended objectives, whether it delivered the benefits described in the project’s business case (Stage 3) and whether the outcomes could have been achieved in a more effective and efficient way.