The Responsible Agency should prepare a realistic and complete set of cost estimates reflecting current and potential market conditions. This should include, but is not limited to:
• land acquisition costs
• Government's cost of development and other approvals
• likely development approval condition costs
• procurement costs; and
• an appropriate separately identifiable amount for contingencies for the occurrence or realisation of risks, including any escalation, interest rate, or foreign exchange risk.
Responsible Agencies should appropriately identify and communicate emerging risks through a set of Commercial Principles as part of the PPP procurement process.