4.2  Sensitivity analysis

It is advisable for any Authority to complete a detailed sensitivity analysis of its preferred option in the context of its affordability ceiling.  Key variables should be tested to assess their impact on the project outcomes to include:

•  Fluctuations of all major inputs including private sector profit on the anticipated cost of the project;

•  Modelling scenarios on the Authority's wider finances against the fixed payment any contract for financial stability / going concern issues.