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This Guide is designed to further strengthen DG XVI’s appraisal capabilities by addressing a particular problem that is encountered with large infrastructure projects: that of cost and time over-runs. It is a fact that very few of the major projects procured with the support of ERDF grant, whether under regional policy programmes generally, or through the Cohesion Fund, are completed within the project sponsors’ originally estimated budget and time frame.
Table of Content:
- Introduction 3
- Understanding The Project Development Process 4
- Initial Project Costs and Cost Varying Factors 9
- Key Determinants of Initial Project Costs 9
- Factors Which Change Costs over Time 11
- Typical Analysis of Project Costs 14
- Methods of Controlling Costs 17
- Uncertainty in Project Costings 17
- Risk and Contingency Planning 17
- Project Management 18
- An Approach to Cost Appraisal and Monitoring 19
- Project Interrogation 19
- Conclusion: Use of this Guide
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