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Defence Estate Quality Management System (DEQMS) Davis Langdon Certification Services

Government and Departmental Project Approvals

Cost Agreement - Department of Finance Role

When considering and agreeing costs, Finance is responsible for examining a range of matters in conjunction with Defence, including the:

(a) comprehensiveness and reasonableness of the assumptions used;

(b) cost effectiveness of the individual components of the proposal;

(c) efficiency of the delivery mechanisms proposed;

(d) the appropriateness of any changes in operating costs;

(e) extent to which existing activities could be used to deliver the proposal; and

(f) possible follow-on impacts to other programmes within the Defence or in other entities.

The costings information supplied to Finance must be sufficiently detailed to allow Finance staff, who may not have been involved in the development of the project, to:

(a) understand and assess the costing brought forward;

(b) identify all the assumptions and data inputs upon which the estimates calculations are based; and

(c) be able to combine the assumption and data inputs to derive the costings which are presented.

Cost Agreement does not constitute Finance support for a project, merely the financial estimate of the costs. Finance will provide comment on the overall project as part of the First and Second Pass process.

Government and Departmental Project Approvals