We have developed the capital evaluation framework to assist our clients with prioritising the capital program.
The framework comprises the following activities:
- Project Go/No go
- Project Justification
- Consequence Evaluation of not undertaking the project
- Financial Analysis
- Cost Benefit Analysis
- Project Ranking
The purpose of this framework is to:
- Provide a robust process for the identification and prioritisation of capital projects
- Acknowledge the life cycle costs of a capital project with the view to incorporating the costs into future budgets
- Provide personnel with a tool that will be used to assist them in identifying capital projects that align with policy
The following principles apply to the framework:
The framework will be applied to all capital projects
- All capital projects will undergo a capital evaluation that includes a financial analysis
- A full cost benefit analysis will be applied to capital projects in excess of $100,000
- A life-cycle approach is undertaken to the costing of projects
- Benefits incorporated within the framework incorporate the following:
- Social
- Environmental
- Financial
- Strategic
- Revenue
- The framework will consider both tangible and intangible benefits
- A risk based approach to project evaluation is applied
- The framework supports Council’s Asset Management Policy
Should you wish further information please contact us.