Allocated budget Tests and affirms the Costs are based on best affordability of the project information available, which and option selected could be inaccurate Stage at which approval for Market not yet tested the project to proceed is Market conditions changing given between business case and going to tender could lessen the accuracy Refinements to the scope of the requirement and tenderers input may alter Previous Cost Relatively easy measure to Doesn’t cater for identify specification changes Simple concept to Lack of transparency on total understand and cost, won’t identify communicate 'intangible' savings You need to consider external influences such as RPI (retail price index), foreign exchange, demand change owing to staff, etc Previous Cost Easy measure to identify Relevance of basket Simple concept to Lack of transparency on total (representative understand and cost, won’t identify basket of items) communicate 'intangible' savings You need to consider external influences such as RPI, foreign exchange, demand change owing to staff, etc Risk of price fluctuations on non-basket items Final Negotiated Easily definable Doesn’t consider budget Caters for specification allocation Cost with supplier changes during activity specifications/contract leading to this Average of bids Easily definable Relies on bids received Useful when it’s difficult to received establish previous cost or where the specification is very different under new contract
Allocated budget Tests and affirms the affordability of the project and option selected Stage at which approval for the project to proceed is given Costs are based on best information available, which could be inaccurate Market not yet tested Market conditions changing between business case and going to tender could lessen the accuracy Refinements to the scope of the requirement and tenderers input may alter Previous Cost Relatively easy measure to identify Simple concept to understand and communicate Doesn’t cater for specification changes Lack of transparency on total cost, won’t identify 'intangible' savings You need to consider external influences such as RPI (retail price index), foreign exchange, demand change owing to staff, etc Previous Cost (representative basket of items) Easy measure to identify Simple concept to understand and communicate Relevance of basket Lack of transparency on total cost, won’t identify 'intangible' savings You need to consider external influences such as RPI, foreign exchange, demand change owing to staff, etc Risk of price fluctuations on non-basket items Final Negotiated Cost with supplier Easily definable Caters for specification changes during activity Doesn’t consider budget allocation specifications/contract leading to this Average of bids received Easily definable Useful when it’s difficult to establish previous cost or where the specification is very different under new contract Relies on bids received
2A(7.3)%20SPF%20GPG%20-%20Benefits%20Tracking.docx