How did you work out the NLHPP Programme costs?
The detailed cost estimate for the North London Heat and Power Project has been developed through a comprehensive and robust process, which establishes the scope and programme costs and incorporates risk allowance for the project too.
Now a thorough project delivery cost estimate has been prepared for the project. It is underpinned by the rigorous work carried out by NLWA and its technical team – including engineers, architects and legal experts – to examine existing ground conditions and buried services at Edmonton EcoPark, estimate third party costs, ensure we can maintain waste management operations at the EcoPark during construction, as well as develop a robust risk review of the internal and external factors that could affect the project. Taking all these factors into account, NLWA developed its detailed cost estimate, which will provide a solid basis on which boroughs and NLWA can finance this important project for the residents of north London.
The cost estimate is underpinned by a robust benchmarking exercise, which examined the major elements of the project’s construction costs against similar infrastructure projects. Benchmarking the project follows best industry practice, ensures our cost estimate is based on strong evidence and enables us to inform our decision making during the next decade.
For example, the Energy Recovery Facility was compared with an international database of similar facilities and is predicted to be in the middle of the cost range for these comparable projects. Programme management costs were at the lower end of the expected benchmark for major infrastructure projects. Risk allowances are in line with similar projects and proportionate for the current stage of project development.
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