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DH guidance on calculating the adjustment for optimism bias (build schemes)

  • Last modified date:
    2 February 2007
In line with the Treasury's Green Book requirement, guidance is provided on the adjustment to be made for optimism bias for capital costs of NHS build schemes that reached invitation to tender after 31 March 2003. The guidance covers the setting of the upper bound and determining mitigation. Two spreadsheets are included to assist with the calculation.

It should be noted that the starting values set out in this guidance are specific to the Department of Health whereas those employed in the Treasury's supplementary guidance to the Green Book are based on experience across various government departments.

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