Cost Planning
Planning what the hospital will cost - capital and operations, with control.
Cost planning sets out what a hospital project and its operations are expected to cost: the capital and operating cost categories, the assumptions behind them, the budget structure and how costs will be controlled through the life of the project. It turns cost expectations into a plan that estimators, budgets and management can hold to.
What this service covers
- Capital cost breakdown by category
- Operating cost categories and behaviour
- Cost assumptions and escalation register
- Budget structure and cost centres
- Contingency and escalation provisions
- Cost control framework and thresholds
- Phasing of expenditure over the project
- Lifecycle cost considerations
- Tracking and reporting mechanisms
- Documented cost plan
Our process
- Define cost categories and structure
- Set assumptions and escalation provisions
- Build the capital and operating cost plan
- Design controls, thresholds and reporting
- Phase expenditure against the schedule
- Document the cost plan
Frequently asked questions
How is cost planning different from financial feasibility?
Financial feasibility tests whether the whole financial case holds - returns, funding and debt service. Cost planning builds the cost side itself: categories, assumptions, budget structure and controls.
How is it different from project cost estimation?
Cost estimation produces bottom-up cost figures for the project. Cost planning structures and manages those costs - assumptions, budgets, controls and phasing - into a plan.
What cost categories are covered?
Capital - land, building, systems, equipment and professional fees - and operating - staffing, consumables, utilities, maintenance and overheads.
How is escalation handled?
Through explicit escalation assumptions and contingency provisions built into the cost plan, so estimates stay current.
What does the customer receive?
A cost plan with the breakdown, assumptions register, budget structure, controls and expenditure phasing.