Cost Valuation

Consideration should be given as to when the costs will be incurred, who will incur the costs and the certainty of costs. Costs should be based on a verifiable source and the basis for the cost estimates should be retained.

Typical sources of information and supporting evidence for key costs include the following:

•  Capital, operating and maintenance and cyclical renewal/rehabilitation:

o  Planning studies;

o  Owner's Engineering Consultant estimators and quantity surveyors;

o  Internal government records of historical prices;

o  Review of past similar projects, procured either as a P3 or traditionally;

o  Private-sector information; and

o  Consultation with industry.

•  Financing

o Marketing sounding;

o Comparison with other P3 projects;

o Consultation with Alberta Finance and Enterprise; and

o Consultant input (Capital Markets, Financial).