Spending

Put the Whole Price on the Page

Put the Whole Price on the Page

The Issue

A project can appear affordable when the public is shown only its initial construction or purchase price. Design, financing, project management, contingencies, technology, site preparation and other predictable expenses can materially change the real cost. Council cannot anticipate every problem, but it can insist that known and reasonably foreseeable costs are presented before a commitment.

My Position

Residents deserve the best available estimate of the complete cost, not simply the number that makes a proposal easiest to approve. Estimates should identify what is included, excluded, uncertain and capable of changing.

What Council Can Do

Require significant expenditure reports to present the full expected project cost, assumptions, contingencies, financial risks, credible alternatives and the consequences of proceeding, delaying or doing nothing.

What I Would Advocate For

A consistent summary showing complete estimated cost; inclusions and exclusions; contingency; significant assumptions and risks; alternatives; and consequences of proceeding, delaying or doing nothing.

Costs and Consequences

Better estimates require time and sometimes outside expertise. Early estimates remain uncertain. The objective is to expose uncertainty before the decision and reduce predictable surprises.

Questions That Still Need Answers

What is included? What remains outside the estimate? How was contingency calculated? Which assumptions create the greatest risk? What would delay or change cost?

Sources and Further Reading

CONNECTED DECISIONS

Connected Decisions

No major community decision happens in isolation.

Ask Holly About This

Have a question or perspective to share? Please get in touch.

Authorized by Holly Courtright, Financial Agent - info@hollyforcouncil.ca

I would like to acknowledge the traditional hosts of the land that I work, learn and play upon and recognize that throughout my day and in my work, I remain a guest in the traditional territories of the Lkwungen (Xwsepsum and Songhees), Malahat, Pacheedaht, Scia’new, T’Sou-ke and W̱SÁNEĆ (Pauquachin, Tsartlip, Tsawout, Tseycum) peoples.