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News & Press: 2019 News items

A Critical Review of Cost Benefit Analysis In Use for Both Public & Private Projects

Friday, 25 October 2019  
Posted by: Bert vd Heever
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Paper by Ellen Lau, Hong Kong, “A Critical Review of Cost Benefit Analysis In Use for Both Public & Private Projects”, 2015 PAQS Congress Proceedings, Yokohama, Japan

Value Management is concerned with improving and sustaining a desirable balance between the needs and wants of stakeholders and the resources needed to satisfy them. Stakeholder value judgements vary, and VM reconciles differing priorities to deliver best value for all stakeholders....” (IVM, 2013)

Value analysis has long been used by surveyors in evaluating the client’s objectives and so is cost-benefit analysis. With the focus on economic objectives, the industry has become more demanding in this modern era where global policies and environmental issues are dominating the minds of the decision-makers. Not only public clients and corporate clients, private clients today also pay attention to cost-benefit analysis in their development in meeting stringent rules and complying with regulatory measures in respect of cost accountability. In analyzing the literature relating to cost benefit analysis, this paper attempts to address the economic perspective of cost-benefit analysis and its unique significance of social costs for the human well-being.
 
Some key issues that are important in cost-benefit analysis but are seldom noticeable in the preliminary stage of project planning are identified in the analysis.
 
Two case examples are given to briefly illustrate the usage of CBA.
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The findings are useful for those who are working with cost-benefit analysis, irrespective of whether they are serving public clients or private clients.

Click here to download the paper from the ICEC website