Cost analysis

Bidders should provide detailed elemental build ups for the capital, lifecycle and facilities management costs.

The information provided must be reconciled to the financial model inputs to demonstrate that the full financial implications have been costed in the Initial Bid.  Bidders must ensure submitted versions are arithmetically correct, free from errors and circular references.

Costs should be estimated on the basis that financial close will occur on the date specified elsewhere in the ISDS document and that construction will take place in accordance with the Bidders' proposed programme.

The Initial Bid must clearly indicate:

•  the base date for the stated capital costs;

•  what provision has been included for price fluctuations up to completion of the Project; and

•  how the stated capital costs are allowed for within the Bidders' financial model.

Bidders should report on consultation with statutory authorities and undertakers on design proposals as necessary including clear statements on all assumptions, provisional sum cost allowance and associated risks as a result of information outstanding at the time of Bid submission.