Components of a PCC and their Financial Evaluation

There are four different cost analyses involved in the full PCC. These are:

1.  Raw PCC.

2.  Competitive Neutrality PCC

3.  Transferable Risk

4.  Retained Risk 

Each of these components' financial evaluation is described below. Each of these PCCs has a distinct purpose and includes certain elements that are not always included in other components. Only by calculating all of the components of the PCC can the public sector truly understand the full public costs of completing a project. All of these components added together equal the total value of the PCC for the project. 50

_________________________________________________________________________________________

50  Partnerships Victoria (2001), 7.