Bokhus

A


B
Benefit-Cost Ratio (BCR): a ratio given by PVB / PVC which indicates how much benefit is obtained for each unit of cost, with a BCR greater than 1 indicating that the benefits outweigh the costs.

Business As Usual or Counterfactual: the scenario that describes what would happen if nothing changes or if the project/proposal is not implemented.

C
Cost Overrun Guarantee

Counterfactual or Business As Usual: the scenario that describes what would have happened if nothing would have changed or if the project/proposal would not have been implemented.

D
Distributional Impacts (DIs): consider the variance of an intervention’s impacts across different social groups.

E
Equity Funding: Money invested in development projects by external parties. These parties could be private individuals, institutions, or funds. Equity funding is different to debt provided by a bank or non-bank lender.

F


G


H


I


J


K


L


M


N
Net Present Public Value (NPPV): a measure of the total economic impact of a proposal. It is the sum of all benefits and costs (expressed in present values).

O
Optimism Bias (OB): the demonstrated systematic tendency for appraisers to be over-optimistic about key project parameters, including capital costs, operating costs, works duration and benefits delivery.

Overage: a contractual mechanism which allows a seller of land to potentially benefit from any subsequent increase in the land’s value after having sold it. Also commonly referred to as claw-back, uplift or anti-embarrassment agreements.

P
Present Value (of) Costs (PVC): the sum of discounted public costs and revenues over the appraisal period, and gives the value of these impacts in the prices of a given base year.

Present Value (of) Benefits (PVB): the sum of all discounted benefits and dis-benefits not included in the definition of the PVC over the appraisal period, and gives the value of these impacts in the prices of a given base year

Q

Quantified Risk Assessment (QRA): allows an expected value (defined as the average of all possible outcomes, taking account of the different probabilities of those outcomes occurring) of the cost of the proposal to be calculated. This expected value should form the ‘risk-adjusted’ cost estimate.

R


S


T


U


V


W


X


Y


Z