Financial sustainability is an important factor in the consideration of Healthcare projects. The consideration of Costs at an early stage will be required in order to complete a robust Feasibility Plan (as indicated in Part F).
Costing has two key aspects, Capital Cost (Construction Cost) and Recurrent Cost (Running Cost).
The Capital cost will affect the size and quality of the project as well as the capacity of the investor to fund the initial construction. Recurrent Cost affects the profitability in the short and long term. An early assessment of both Capital and Recurrent cost is necessary in order to ensure a successful and realistic project.
Discussions of Costing for hospitals are often confused due to a multitude of methodologies and terminologies used. Depending on the methodology or context of discussion some elements of cost may be included or excluded. The calculation methodology may even vary between experienced Quantity Surveyors. This makes benchmarking and comparison harder and unreliable.
The purpose of this Part is to define a simple methodology and language for the description of the costing of healthcare facilities.
|Terms and Abbreviations||476.2KB||View|
|Appendix 1 - Capital Costing Guidelines||1.2MB||View|