Economics and Financing

Documentation and Quality Control of Benefit-Cost Analyses

Publication no: AP-R390-11
ISBN: 978-1-921709-95-1
Published: 23 September 2011

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The purpose of this document is to develop and present a catalogue/checklist of items, which can be employed by transport agencies and their practitioners and consultants to properly document the methodology, data, analysis and results of project appraisals.

In the past, there have been deficiencies in the way benefit cost analysis (BCA) has been documented and implemented across road transport projects in Australia. In particular, this document presents a ‘metadata’ analysis framework to promote organisational learning and quality improvement in the processes of project appraisal, funding and budgeting, and prioritisation of investment, as well as repeatability and consistency of project evaluation analysis, when required.

1. INTRODUCTION
- 1.1. Scope of the Project
- 1.2. Aim of Project
- 1.3. The Wider Context for a Project BCA
2. COMMON PITFALLS OF THE BCA PROCESS
- 2.1. Assumptions and Modelling Inputs
- 2.2. Risk Estimation
- 2.3. Quality Control
- 2.4. UK Experience
3. CHECKLIST
- 3.1. Checklist of Assumptions and Modelling Inputs
- 3.2. Proforma for BCA Process
  - 3.2.1. Establish Unit Values
  - 3.2.2. Estimate Volumes
- 3.3. Presentation of Appraisal Results
  - 3.3.1. Presentation of BCA Results
  - 3.3.2. Risk Estimation
- 3.4. Non-monetised Benefits and Costs
- 3.5. Quality Control
4. CONCLUSION
REFERENCES
APPENDIX A DELIVERABILITY ASSESSMENT