Independent Commercial, Cost & Risk Review of Road Development

Brief

HKA was engaged by Transport Scotland to provide an independent cost review and identification of risks associated with the scheme design, to identify any points of commercial exposure and to provide confidence to sponsors that the scheme could be built within its budgetary envelope.

What we did

To support the programme, HKA was appointed by Transport Scotland to conduct an independent high level analysis and verification of the cost estimates for the road upgrade. This was required such that Scottish Ministers could have confidence in the construction cost estimate prior to proceeding with any procurement. HKA’s team successfully conducted reviews of multiple sections of the scheme’s design as well as associated costs, programme schedules and risk allocation for each part of the route. This enabled us to provide instil confidence in the cost allocation and provided the opportunity to identify risks that could be addressed pre-emptively to avoid future cost escalation. HKA did this by providing expertise in:

• Capital cost appraisal
• Risk management

Outcomes

As a result of this review, Transport Scotland was provided with confidence, based on the information available at the early stage of the scheme’s development, that the dual carriageway development could be delivered within the US$3.9 billion budget.