1. Infrastructure Projects 03 Dec 2015Cost Planning Briefing to Commercial Directors Forum1 Cost Planning Improvement Plan Awareness Briefing to Commercial Directors Forum

2. 03 Dec 2015 Cost Planning Briefing to Commercial Directors Forum 2 Cost Planning & Estimating Scrutiny Dame Colette Bowe (‘… the Bowe Review …’) is looking at what lessons can be learnt from the planning of the Control Period 5 programme in order to improve future rail infrastructure investment. This will be in the autumn of 2015. Sir Peter Hendy, Chairman of Network Rail (‘… the Hendy Review …’) is looking at how the current investment programme can be put back on a sustainable footing that is deliverable and affordable. This will be in the autumn of 2015. Nicola Shaw, CEO of HS1, (‘… the Shaw Review …’) is looking to the future: advising the government on how it should approach the future shape and financing of Network Rail in the longer term. This will be in the spring of 2016 in time for the 2016 Budget. Her Majesty’s Government has recently commissioned three pieces of work looking into Network Rail June 2015

3. 03 Dec 2015Cost Planning Briefing to Commercial Directors Forum3 Cost Planning & Estimating Scrutiny Network Rail recognises that there were shortcomings in aspects of the Strategic Business Plan submission that informed the Final Determination for CP5 with regard to the forecasting of funding requirements for the enhancement and renewals programmes. Network Rail believes that simplistic perceptions around the ‘… inability to Estimate …’ misrepresents the complex dynamics of early forecasting of railway schemes which is actually a matter of improving consistency in scope development and control, cross functional culture and engagement, service provision and governance and the level of subject matter resource, data and supporting IT systems. A credible Cost Planning Improvement Plan has been developed by Network Rail, scrutinised by the ORR and is being deployed. Network Rail and industry support for this plan is evident. It will transform Network Rail’s capability with regard to CP6, addressing the shortcomings of the preceding Control Period. Message from Mark Carne – Chief Executive, Network Rail – to Secretary of State for Transport (Patrick McLaughlin) July 2015

4. 03 Dec 2015Cost Planning Briefing to Commercial Directors Forum4 Cost Planning & Estimating Governance ‘… I want ….. ‘… Cost Plans / Estimates produced by competent individuals / organisations and approved by IP Head of Cost Planning …’ ‘… Cost Plans / Estimates formatted correctly in a national consistent manner (Rail Method of Measurement compliant) with appropriate risk – similarly for programmes with key assumptions, milestones, critical path identification and resources …’ ‘… to increase our governance and control in regard to our responsibilities within early GRIP stages of development. I want controls in place whereby our IP Regions still provide a service to their Route Sponsors / Clients but I want central governance and assurance providing certainty that what is produced is appropriate for the particular stage of a project’s development …’ ‘… Cost Plans / Estimates and Programmes base lined and a clear change control process / governance in place …’ Message from Neil Thompson, IP Commercial & Development Director 3 rd September 2015

5. /03 Dec 20155 Cost Planning Improvement Plan – Workstream The levels 1. Basic 2. Room for Improvement 3. House in order 4. Best practice 5. Leading edge PEOPLEPROCESSSYSTEMS & DATA#ESTIMATING CAPABILITY # = STAKEHOLDER ENGAGEMENT 123 4 56 7 1 63 2 5 4 7 PRIORITIES: 1.Resources: Establish an HQ service capability with a team of practitioners. Increase the Regional team capability and service offering 2.Systems and Data: Develop and deploy an integrated IM strategy to support UCM and Benchmarking (RCIS), National Rates Database (NRD) and a single corporate Estimating Tool of Choice (EToC) with ‘Service KPIs’ 3.Rail Method of Measurement (RMM): Establish the RMM across the industry as business as usual 4.GRIP Outputs: Improve the discipline for GRIP deliverables from stakeholders 5.Early Engagement: Develop a National Cost Planning Service to support GRIP Stages 0 to 3 6.Governance: Provide assurance and hold practitioners, clients and consultants to account 7.Scope Alignment / Control: Reconciliation of scope development through change control of Cost Plans throughout GRIP Stages 0 to 8 8.Whole Life Cost: Deploying and integrating Whole Life Cost and Life Cycle Cost into the Cost Planning and Estimating discipline

6. 03 Dec 2015Cost Planning Briefing to Commercial Directors Forum6 The art of Estimating

7. 03 Dec 2015Cost Planning Briefing to Commercial Directors Forum7 Questions