Network Rail - Embedding Whole Life Costing into Infrastructure Projects

Faithful+Gould has provided subject expert support to enable Network Rail to produce a Whole Life Costing (WLC) manual to embed whole life cycle costing into all future infrastructure projects from 2014 onwards.

The WLC manual for projects provides the following:

  • Core principles: defining WLC and life cycle costing (LCC), why it is important and when / how to apply it
  • Roles and responsibilities: clients, project sponsors, PM, QS, RVM and route asset managers and engineers
  • Establishing WLC in projects: how to produce economic and financial modelling on projects, estimating methods for capital construction costs, estimating methods for life cycle costing and non construction costs, how we deal with sustainability and reliability, driving WLC into the decision making process though risk and value management
  • Methods, products and tools to use
  • WLC tasks during the GRIP stages: checklist (following the RIBA plan of works format)
  • Evidence required at key decision points
  • Cost breakdown structure + unit costs method (link to Rail Methods of Measurement)
  • Case studies

This will have massive implications on the UK construction industry and will change the way investment decisions are made in future. The WLC manual embeds the WLC and LCC cost breakdown structure from the ISO 15686, new rules of measurement and also the 'unit cost framework' methodology as Network Rail's Rail Methods of Measurement. This provided a standardised cost framework for cost analysis and benchmark cost data all asset categories (for all infrastructure asset categories – e.g. tunnels, structures, track, signalling, as well as for stations, car parks and other operational buildings).

The Office of Rail Regulations has made WLC a mandatory requirement for funding of all future infrastructure construction project works to the rail network from April 2014 onwards.