Cost Intelligence is the digital transformation
of cost management practices to improve
Infrastructure Cost Intelligence
Improving investment decision making
investment decision making.
It facilitates the combination of cost data, analytics,
market intelligence and estimating knowledge to We work with you to create a wider
deliver best practice services and tools covering
capital, operational and whole life spend. approach beyond commercial and
The infrastructure cost intelligence team has
extensive experience in deploying solutions
financial assurance to unlock further
savings and reduce risk.
to support and improve cost management at
all project lifecycle stages. Working across the
water, power, highways and rail sectors, the cost
intelligence team optimises investment decisions
to improve performance and target investment
supported by a regulatory audit trail.
Our class-leading cost intelligence practices
allow us to provide both bespoke commissions
and reports as well as enhanced traditional
services such as project estimating.
Financial metrics
Cost Data Analytics Capital Operational
Market Intel Estimating Environmental Carbon Socio-economic
Performance metrics
Contact
Tristan Harvey-Rice Edward Day
Associate - Data Analytics Associate - Inflation and Regulation Strategy
+44 (0) 7500 765605 +44 (0) 7704 770882
tristan.harvey-rice@aecom.com edward.day1@aecom.com
aecom.com
Select experience
Capex and opex estimating,
Wessex Water
To facilitate robust capex estimating, we
analysed Wessex Water’s supplier data
where available, and then combined
with industry cost data to develop a fully
auditable PR19 rate library used for all
bottom-up estimating enabling efficient
and robust reviews to be undertaken
and helping ensure all scope was
captured and priced appropriately.
AMP7 benchmarking,
Tier 1 contractor
Provision of how costs at a process
and unit rate level compared to industry
in general and specifically against
the client’s own cost data to quantify
inflationary risks over a contract
period. This work also included a
confidence variance for the forecast
and commentary on the likely impact of
macro-economic factors such as Brexit.
Benchmarking Template
MANHOLES (URBAN)
Key services
Capex and opex estimating: High
level estimating can be efficiently
delivered using our suite of top-
down industry models. For complex
or detailed-design estimating, we
maintain standardised library of
industry rates, cost and carbon
libraries and models embedded
in our best practice estimating
systems. Our processes are flexible
enough to accommodate varying
Key services Select experience AMP7 framework inflation forecast,
Cost modelling Inflation and market reporting Tier 1 contractor
Inflation studies and forecasts: PR19 inflation forecast, As part of the client’s AMP7 bid for
Accurate cost modelling is imperative for business Understanding the market within which you Providing greater certainty of Wessex Water Severn Trent’s capital works, we
planning, creation of initial cost estimates and operate is essential for infrastructure companies. inflation risk both on live and future The South East has a number of forecasted CPI-H over the period of
production of target costs across programmes Macro-economic events as well as regional projects, a robust and auditable significant projects earmarked for AMP7 and our view of industry costs over
of works. Maintaining a library of models allows labour shortages can significantly impact inflation cost and tender price indices construction over the next decade the same time period. This allowed the
estimates to be based on the clients own historic data projects, reducing cost efficiencies and delaying and forecasts allow intelligent client including Hinkley Point C. We provided client to assess any forecasted deficit
and tailored to the environment and site complexities programmes. We enable companies to fully decisions regarding inflationary risk Wessex Water with an analysis of likely between target costs adjusted by CPI-H
that most impact their cost certainty. understand potential risks and make intelligent and how this can be mitigated. tender price increases which could be and their actual inflationary pressures
decisions through: expected due to increased construction and make appropriate adjustments to
−− Capex and opex estimating Bespoke inflation indices for
output in their geographical region. their bid submission to compensate.
−− Direct and indirect benchmarking −− Inflation studies contracts: The incorrect selection
This enabled Wessex Water to adjust

−− Forecasts of an index, which does not reflect

client requirements, applications or −− Cost data capture and validation business planning estimates to allow for
Regulatory business plan support, −− Market reports and regional studies the works undertaken, increases the
data, and integrating capex, opex and −− Complexity studies increased tender prices and whether
Anglian Water risk of unexpected cost pressures.
whole-life cost forecasting. −− Tender price studies a special factor adjustment should be
This can lead to contract disputes
Commercial Outperformance and −− Contract inflation clauses advice and analysis sought through for PR19.
Cost data capture: Understanding and the breakdown of collaborative
Construction Economics Alliance
the value of consistent data capture working and behaviours essential Project inflation study,
partner providing a range of PR19
against a well-defined breakdown in modern integrated partnering/ Confidential client
analytics and cost intelligence
structure can support both the alliancing delivery models. Bespoke
commissions enabling the provision Cost inflation analysis for a sewer
creation of a breakdown structure to inflation indices aligned to project
of auditable costings, auditable risk treatment works upgrade allowed
facilitate future estimating and/or the works, and agreed with both parties,
percentage adjustments, a bespoke our client to understand the variance
mining of data against an established before entering into a contract can
inflation index aligned to quarterly between the inflation adjustment applied
structure. enabling inflationary pressures to be
cost data and alternative efficiency D e by the utility provider and the inflationary
li v fully reimbursed.
metrics for evidencing alternatives to cost pressures they were experiencing.

Direct and indirect benchmarking

er
comparitive costings to inform PR19 te l l i g e n This enabled the client to begin
of costs against industry peers, t In

ce
os

Pl a
Business Plan. discussions on a revision to the inflation
allowing better understanding of

C
adjustment mechanism within the
total costs and intelligent targeting of

contract to better aligned adjustments
efficiency efforts.
with the actual inflationary pressures the

client was experiencing.

ce
os n

te
t Intellige

ra

M

Select experience
Water resource management plan
support (PR19), Affinity Water
Capex model creation was performed
for a number of water treatment
processes and involved using
industry data to produce blended
cost models and then calibrating
them via benchmarking to ensure
they represented Affinity Water’s cost
environment. Opex cost models were
developed from Affinity Water’s own cost
data covering over 300 water treatment
sites to obtain a suite of multi-variable
opex cost models.
Carbon tool data collection,
Environment Agency
To perform efficient extraction and
compilation of data amassed across
hundreds of varied carbon calculation
workbooks, we developed a tool to
rapidly process the data.The tool was
user-configurable, allowing future
adjustments to the way data extraction
is defined and where it is stored in the
amalgamated tables.
Assembly creation, HS2
An auditable Excel-based prototyping
platform was designed to allow basic
parameters for principal assets to be
defined, from which a full bottom-up
estimate is automatically produced,
utilising a central cost library. As
the design matures, further asset
details can be added which override
default assumptions. Once approved,
prototypes are transferred into the
CostOS estimating system.
The assemblies allow the impact of cost
and design changes to be immediately
seen across the entire programme, and
the effects of different procurement
strategies to be explored with little effort.
Key services
Data management: Migrating data
between systems, harvesting data
and adopting new data management
tools.
Data science and analysis:
Extracting statistical relationships
from data to produce useful insights
and forecasting or benchmarking
tools.
Machine learning: Supporting
the development and deployment
of machine learning technologies
to maximise the understanding of
relationships in big data.
Data capture: Performing auditable
data collection, cleansing, analysis
and model production.
Business transformation: Working
with lean practitioners to produce
value stream maps and then
capture the relevant data allowing
quantification of opportunities.
pe
on O
i to
Key services
r
Digital transformation Regulatory support
A key challenge facing many companies is the Infrastructure companies that operate in a
intelligent organisation, collation and interrogation regulated environment or those that report to
of what is often a vast accumulation of historical government departments require enhanced
information in order to extract useful insights from the knowledge of their costs and performance. We
data deluge. work with a range of infrastructure clients on
their multi-year business plans assisting in the
A wide range of business processes can benefit from presentation and quality assurance of costings
techniques for managing and assessing large and/or and helping to establish wider performance
disparate sources of data including: metrics to effectively communicate future planned
works are efficient and align with customer needs.
−− Machine learning
−− Data management −− Business plan consulting
−− Data science and statistical analysis −− Efficiency measures
−− Visualisation and reporting −− Special factor reporting
−− Benefit realisation
−− Procurement strategies
Special factor reporting and
complexity drivers: Understanding
cost drivers is essential for
infrastructure clients to enable
accurate cost estimates and to
provide additional assurance of costs
for regulatory purposes. We provide
infrastructure companies with a
range of auditable project complexity
factors to adjust estimates and
to validate increased spend due
to special factors aligned with
geographical, social and geological
constraints.
Procurement strategies: The
continued drive to increase
efficiencies results in clients having
to work closer with their delivery
partners, commonly in Alliancing
arrangements. We assist clients to
establish future procurement models
aligning client needs and outcomes
to contractors reward.
Select experience
Decision-making platform,
Yorkshire Water
To balance financial and whole-life
performance across a programme
of works, we supported Yorkshire
Water and SEAMS in the development
of a Decision Making Framework
platform which allows the client to
assess solutions based not only on
the capital and operational costs
but also considering the benefits of
environmental and socio-economic
factors. This integrated approach to
decision making will allow Yorkshire
Water to align their future programme
of works with their customer values and
to evidence projects which produce the
best outcome rather than just cost.
Business planning consultancy,
Anglian Water
As part of the commercial
outperformance and construction
economics alliance at Anglian Water,
we are delivering a range of Business
Planning consultancy commissions
including; complexity factors to adjust
project estimates, auditable risk
percentage allowances, alternative
metrics to measure efficiency other than
cost and business plan assurance.
Procurement strategies,
Scottish Water
To enable increased efficiencies
and enhanced collaborative working
practices, we are providing strategic
advice to Scottish Water on differing
procurement models. With experience in
operating across different infrastructure
sectors, we have been able to provide
best practice knowledge to enable
Scottish Water to consider alternative
procurement models post Strategic
Review 2021.

AECOM 6