Can the application of the RICS Cost Prediction Statement prevent colossal over expenditure we see on so many major infrastructure projects?

Question

Tom Spilsted · Answer

This is a very thorough guidance note produced by the RICS with a global spread of authors. I am sure many of the processes and approaches are used in the industry already, however the biggest issues on the large infrastructure projects as we see with HS2, Hinkley, and Houses of Parliament buildings refurbishment, remains that the media and political comments always go back to the first budget to give the soundbite headline of "shock horror billions over budget", but is it the same project scope?
A number of key points always seem to come into play with major (in particular public sector) infrastructure projects -
1. Scope definition - what is included and what isn't?
2. Scope creep as routes or local planning / political issues kick in.
3. Historic cost data bases - how relevant are they really, are inflation adjustments relevant?
4. Contingencies?
Personally I think forecasting on these projects is incredibly hard even before the politics kick in. Hopefully the document will help those involved in these forecasts. As a way forward should the industry be trying to get a number of companies to work in tandem through the whole lifecycle of these projects to ensure consistency of approach etc. Its a big ask for the individuals involved as the timeframes can be long - many years on one project can be a challenge.

Can the application of the RICS Cost Prediction Statement prevent colossal over expenditure we see on so many major infrastructure projects?

Infrastructure

Budgets

cost

forecasting

RICS

Steve Hardy

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