Definition and classification of costs
The reliability of a benefit-cost comparison depends crucially on the accurate estimation of costs. All expected whole-life costs of works and management are required to be included in this including capital, maintenance and operating costs.
- Capital Costs
- Operating Costs
- Maintenance Costs
- Decomissioning Costs
Cost element |
Example: Structural flood risk management measure |
Example: Non-structural flood risk management measure |
Capital costs |
Construction of culverts or raised flood defence walls |
Telemetry system for flood forecasting and warning systems |
Operating costs |
Electricity to power moveable items such as flood sluices or gates |
Staff for flood forecasting centres |
Maintenance costs |
Inspection and renewal of the bearings in a flood gate |
Generally relatively insignificant |
Decomissioning costs |
Demolition of flood walls |
Generally relatively insignificant |


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