Cost Type | Pre-FBC Optimism Bias Factor | Post-FBC Optimism Bias Factor |
Capital Expenditure | {10}% | {30}% |
Lifecycle Costs | {10}% | {30}% |
Operational Expenditure | {10}% | {20}%1 |
Transaction Costs | {10}% | {10}% |
Third Party Income | {10}% | {10}% |
1 The size of the relevant Optimism Bias Factor reflects, in part, the extent to which contractors are able to accurately determine probable costs. Significant levels of data facilitate FM cost estimation, thus a relatively low retention factor is applied. Lifecycle costs which are incurred only once every 10 years are more difficult to predict and thus a higher Post-FBC OB Factor is warranted.