Table 1.H: Lifecycle Costs VfM Adjustment

 

Conventional Procurement Option - Investment in Lifecycle Costs

Conventional Procurement Option - Investment in Lifecycle Costs

Lifecycle Costs

Less than 100% of the net present value of Lifecycle Costs included in the PFI Option

Equal to or greater than 100% of the net present value of Lifecycle Costs included in the PFI Option

Lifecycle Costs VfM
Adjustment

Net present value of PFI Option Lifecycle Costs minus net present value of Conventional Procurement Option Lifecycle Costs multiplied by 40%.

Nil