Checklist of Typical Capital and Revenue Costs and Benefits

Costs and benefits to be covered by an appraisal will typically include:

1. Initial capital costs, such as:
   • purchases of land and buildings, including accommodation for staff, computers, equipment and vehicles;
   • purchases of equipment, vehicles, hardware and software;
   • installation and implementation costs;
   • development costs including staff costs and consultancy and other professional fees;
   • testing;
   • training;
   • special furniture
   • infrastructure and works services;
   • communications; and
   • initial security and contingency costs.
2. Opportunity costs, based on up-to-date market valuations, of capital assets which are already in public ownership, such as land, buildings, equipment and vehicles.
3. Replacement costs required during the appraisal period. These may be needed in respect of any capital assets employed on the project.
4. Staff costs recurring throughout the appraisal period, including not only salary costs but also the costs of accommodation, superannuation, employers' national insurance contributions, allowances and other overheads. Double counting should be avoided e.g. if the purchase cost of a new building for staff has already been included, then it would be incorrect also to include an allowance for accommodation within annual staff costs. Relevant staff may include those involved in:
   • management;
   • operation;
   • support; and
   • ongoing training.
5. Operating costs recurring over the whole term of the appraisal, such as:
   • maintenance charges;
   • licensing and support costs;
   • bureau services;
   • leasing and rental costs;
   • recurring contingency and security costs;
   • energy costs
   • rates; and
   • cleaning
6. Residual values of capital assets used in options, either at the end of the appraisal period, or in the year in which they are released from use, whichever is sooner.
7. Cost of Carbon, where a project is deemed to have a significant carbon impact.
8. Any other costs and benefits that can be valued in money terms, such as revenues.
9. Costs and benefits affecting other parts of the public or private sectors.
10. Quantified measures, or at least descriptions, of those costs, benefits or impacts which cannot be measured in money terms.