B14 Assess Options and Secure Funding for Capital Development
B14 Assess options and secure funding for capital development
B14.1 Identify and assess capital funding requirements
Performance Criteria - this involves being able to...(a)categorise the client, project type and type of investment and identify appropriate funding sources and types for capital funding
(b)identify and quantify factors that may influence the market for the completed project, the return on capital investment and potential risks
(c)forecast the level of finance required for contracts to the level of accuracy required by funding sources and within the constraints of significant external influences
(d)estimate projected timescales and cash flow requirements for capital funding accurately and agree them with the client
(e)phase capital funding requirements to meet the anticipated project and investment timetable and allow for contingencies for anticipated cost inflation and slippage in the project timetable
(f)select and cost appropriate insurance cover
(g)analyse capital funding requirements to meet the client's requirements
(h)prepare a report on capital funding requirements which presents a business case and is sufficiently detailed and accurate to be an acceptable basis for calculating capital funding options / The Range...
[1]Client:
• national and local government;
• government agencies;
• private sector;
• voluntary agencies
[2]Identify:
• documentary;
• investigative research;
• expert consultation
[3]Funding sources:
• international (eg EU, World Bank, UNO);
• central banks;
• commercial bank;
• local authority;
• development agency;
• grants;
• subsidies and loans;
• stock market;
• tax incentives
[4]Potential risks:
• interest rate fluctuations;
• currency fluctuations;
• market fluctuations
[5]External influences;
• interest rate movements;
• fiscal policy;
• economic indicators;
• environmental policies;
• political changes;
• funding mechanisms & fiscal measures supporting low carbon technologies
[6]Cash flow:
• income receivable;
• types and terms of payment;
• prepayments;
• expenditure;
• cash payable;
• cost of funding;
• provision for retention
B14 Assess options and secure funding for capital development
B14.1 Identify and assess capital funding requirements
The Evidence - performance and processProduct Evidence:
(1)Forecast(s) of the level of finance required (a,b,c) [1,2,3,4,5]
(2)Report(s) on capital funding requirements which include estimated timescales, cash flow requirements and insurance cover (d,e,f,g,h) [1,6]
Process Evidence:
None applicable / The Evidence - knowledge and understanding
(1)How do you categorise the client, project type and type of investment? (application) (a) [1]
(2)How and why do you analyse capital funding requirements to meet the client's requirements? (analysis) (g) [1,3,6]
(3)How do you prepare a report on capital funding requirements? (application) (h) [1,6]
(4)How and why do you estimate timescales and cash flow requirements for capital? (analysis) (d) [1,6]
(5)How and why do you agree projected timescales and cash flow requirements for capital? (evaluation) (d) [1,6]
(6)What do you identify as appropriate funding sources and types for capital funding? (understanding) (a) [2,3]
(7)How and why do you forecast the level of finance required for contracts? (analysis) (c) [2,5]
(8)What do you identify as factors that may influence the market for the completed project, the return on capital invested and potential risks? (understanding) (b) [4]
(9)How and why do you quantity factors that may influence the market for the completed project, the return on capital invested and potential risks? (analysis) (b) [4]
(10)How do you cost appropriate insurance cover? (application) (f) [4]
(11)How and why do you select appropriate insurance cover? (evaluation) (f) [4]
(12)How and why do you phase capital funding requirements? (synthesis) (e) [6]