14.1.2  Project capital costs

[Insert name] provided the capital costs (refer report by [insert name]) based on the reference project assumptions in Section 12.3: The reference project and commercial development. The capital cost estimates are:

•  Land acquisition and development is estimated to have a market value of $5.0 million.

•  Base construction costs of the hospital building (based on the dollar cost of work rates per square metre using detailed drawings of the reference project and gross floor area) were estimated at $150.0 million as defined in the reference project. This includes the on-grade car park.

•  Project design is estimated at $0.5 million.

•  Payments to consultants for design and architectural services are estimated at $1.0 million.

•  Cost escalation during the construction phase is estimated as in line with the CPI.

In addition:

•  Plant and equipment were estimated by [insert name] at $50 million.

•  Refurbishments are to occur in years 5, 8 and 11 based on three-year capital expenditure cycles post-construction, and are to be spread equally.

•  Capital (upgrade/refurbishment) is estimated at 10 per cent of the base construction cost, incurred in year five, based on estimated lifecycle of specific items of capital equipment.