Cost and benefit analysis
Purpose of cost and benefit analysis
The cost-benefit calculation is an integral part of the rationale for starting a project and the rationale for development in general. The City of Helsinki's projects should generally generate benefits and the benefits must exceed the costs. Costs include both the cost of implementation during the project and the post-implementation costs incurred by the project (e.g., operating and maintenance costs). The result of the calculation is information that allows management to decide on the implementation, continuation and priority of the project.
The project's cost-benefit calculation also facilitates targeted communication between, for example, core (business) and digitalization activities.
The cost-benefit statement breaks down and calculates the cost items for the different parts of the project or change. The cost-benefit calculation also helps determining the value of the acquisition when it is time to launch the public tender.
Other sources
Cost analysis guide for municipalities (Finnish Association for Municipalities)
EU-projects' business case templates
Gov.uk business case templates