Cost Engineering
Strong track record in effective cost engineering on major defence projects.
We have a dedicated team of 15 expert cost engineers with a proven track record on major government projects across UK defence. Our staff are devoted to the management of project costs, undertaking such activities as, modelling, estimating, assurance, investment appraisals, and risk analysis.
Our experts customise the approach and outputs to meet the specific requirements of each individual customer. We are experts at analysing technical options and building cost estimates where little or no data exists, our transparent approach ensures all assumptions are agreed at the outset before work begins.
We assist customers by saving money on existing projects, whilst also advising on the most efficient way to spend money on future projects, ensuring optimal value for money is always achieved.
Services
- Cost modelling: Provision of detailed tender evaluation to support decision making and drive value for money in the delivery of projects. Utilising should-cost modelling to forecast what a service, project or programme ‘should’ cost over its whole life.
- Compliance with SSCS: Provision of allowable cost reviews (ACR) to ensure full compliance with Single Source Cost Standards (SSCS).
- Identification of cost savings: Cost saving reviews highlighting potential opportunities to reduce project costs without adversely impacting delivery timescales.
- Cost Management: Planning and controlling budgets using techniques such as earned value management (EVM) to reduce the likelihood of project overspend.
- Scheduling: planning and controlling risk and cost using techniques such as Schedule Risk Analysis to reduce the impact of risks and time delays to the project.
- Data collection & analysis: Collection and analysis of data to estimate the time, cost, material, and labour required to manufacture a product, construct a building, or provide a service. Robust estimating upfront allows accurate budget setting, building confidence in the likelihood of delivering on budget.
- Basis of Estimate production: Development of a detailed BoE including scope, assumptions, exclusions, and data source.
- Cost estimation: Utilision of multiple estimating techniques based on data maturity and availability, ensuring the best possible estimate is achieved.
- Robust financial modelling: Utilisation of best-practice techniques to build bespoke financial models to forecast future cost, taking account of inflation, forex movements, and uncertainty.
- Detailed cost breakdown: Provision of a detailed breakdown of cost through implementation of a cost resource breakdown structure (CRBS).
- Risk-based cost outputs: Generation of probabilistic outputs through monte-carlo simulation, ensuring all approvals criteria are met.
- Sensitivity analysis: Detailed sensitivity analysis examining the impact of parameter changes on the modelled output, enabling decision-makers to better understand cost drivers.
- Performance monitoring: Monitors current performance against baseline cost and KPI’s to reduce the chances of project overspend.
- Tracking Progress: Analyses Earned Value Management (EVM) data to track progress against project milestones, enabling decision makers to quickly implement corrective action.
- Performance Reporting: Develops dynamic reporting through dashboards, detailing current position against forecast and real-time what-if analysis.
- Financial model review: Independent review of the accuracy, robustness, and reliability of financial models and input data. Improving the overall quality of decision-making and third-party confidence in the outputs.
- Independent verification of financial models: Independent verification of cost models to ensure they meet best-practice requirements and are calculating error free
- Cost input review: Independent validation of cost inputs including review of assumptions and data maturity assessment
Why TP Group?
- More than 30 years' experience in the Defence sector
- Proven track record on major government projects across UK defence
- Dedicated team of cost professionals numbering more than 15
- Straightforward to engage through multiple frameworks
- Independent consultancy not affiliated to any software or technology
Our work in Cost Engineering
Logistics Technology Investigations (LTI) Work Package 6 (WP6) delivered robust analysis of Fossil Fuels and Alternative Energy to assist Dstl in understanding energy demand across UK Defence, recommending how this could be reduced and showing what alternative energy sources could offer to better support climate change. The work was split into three work packages.
The Type 26 programme is delivering new Anti-Submarine Warfare Frigates for the Royal Navy. TP Group demonstrated their strength in Cost Modelling while assisting DE&S during the demonstration phase, enabling delivery of the successful business case securing Main Gate approval for the £5.1 billion manufacturing phase.
Project Marshall covers the modernisation of Air Traffic Management (ATM) services at MOD airfields in the UK and UK Overseas Territories. TP Group created a comprehensive view of all major ATM assets under Project Marshall, covering eighty sites and over 4,400 items of equipment.
TP Group was involved in the Submersible Ship Nuclear Replacement (SSNR) programme by providing cost inputs to Primary Plant down-selection, ensuring capability was achieved at lowest possible cost and all OBC evidence requirements were met.
TP Group was tasked by MOD to assist in the Wildcat support solution definition for the next Integrated Operational Support solution (WIST) price period beginning in 2022.