Capital Evaluation Framework

1373We 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.