What you need to do

Produce a high level cost estimate for the life of the investment, based on previous experience/comparison with similar investments/projects. Include an estimate of the returns/value of the project in comparison with potential alternatives. Identify who (or which bodies) will hold the budget and make the investment decision. Check that there is enough funding available in the current year's budget allocation. Identify whether the project exceeds thresholds for EC procurements. Indicate the range of risk allowances needed:

• cost with no risk allowance
• cost in 'worst case' scenario with risk allowance breakdown
• likely 90% completion cost together with risk allowance breakdown.

Include human resource use - internal staff as well as external resource provision.

Points to consider

For cross-cutting projects it is especially important to establish who will approve the investment decision relating to the project, who will hold the budget and how financial provision will be controlled over its full life cycle.

See also

• Life Cycle Costing
• For construction projects see:  Achieving Excellence in Construction: No. 7: Whole-Life Costing