Testing
the Options
The options
must be tested using the same criteria. There are 4 tests:
Demand and Finance Test
- Can the services needed (demand) be provided and financed?
High and changing school and housing demand and lack of Council
finance or inability to use it for building new schools and
homes will automatically eliminate many options.
What
Factors inform the Demand and Finance Test?The demand and
finance test is the first test that will be applied to the
16 options in order to reduce them to a smaller number. The
key characteristics tested here are:· Is there demand
for school places and housing?
· Is there availability of replacement housing?
· What condition is the current housing stock and school
in?
· What Council finances are available for use?
· Will it allow a change in tenure?
· Can more housing be built in this area thus increasing
density?
· Are the sizes of flats right?
· Will the option meet the objectives of the community,
the Council and Government?
The
Net Present Value Test
- What is the value of the financial costs and benefits of
each option? When will benefits occur and for how long? Which
is the option where the value of benefit minus cost is the
highest?
The
Quality of Life Test
- This assesses the benefits of each option that cannot be
priced. Here, the benefits to health of good housing or the
beneficial effects of a good standard of living space can
be assessed.
Market
Test - Quite simply, potential partners and funders
are consulted as to whether they would wish to tender and
deliver the different options. Market leaders in the field
are consulted which should provide the Council with confidence
that there is interest in delivering the options chosen.
To find out more about these tests download our file 'Education
and Housing Option Appraisal- Introduction and the options
available'
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