14.1.3  Project operating costs

Operating costs for the project have been estimated by [insert name] based on the following assumptions:

•  Building maintenance and maintenance for plant and equipment are based on expected utilisation of the building and associated facilities produced by [insert name of source].

•  The cost of wages and salaries is based on current and forecast wages and is inflated at CPI + 1 per cent which equates to 3.5 per cent per annum.

•  Running costs for the hospital (i.e. electricity, gas, water, telephone etc.) were estimated at $2.0 million per year.

•  The cost of insurance was estimates to be $1.3 million per year.

•  Construction overheads which relate to the costs of managing the project during the construction period (including oversight of the construction contractor) were estimated at $1.0 million per year.

•  Operating overheads relating to ancillary running costs not directly involved in the provision of the hospital or related infrastructure are estimated by [insert name] at $0.2 million per year.

•  Administration overheads due to the cost of ongoing facilities and project management were estimated by [insert name] at $0.5 million per year.

•  Indirect capital cost allocation for partial use of other government equipment and resources was estimated by [insert name] at $0.1 million per year.

•  Third-party revenue was estimated by [insert name] at $5.0 million per annum. This relates to lease rentals related to the florist, car parking and patient TV services.