Dynamic estimating is of paramount importance in the UK water sector, particularly in light of the upcoming Asset Management Period 8 (AMP8). This new regulatory period, which is set to begin in 2023, will bring significant changes to the industry and will require companies to have a flexible and adaptable approach to estimating project expenses and outcomes. One of the key challenges during AMP8 will be managing framework delivery partners, who play a crucial role in the delivery of water infrastructure projects.
According to research by British Water, the optimal delivery model for the water sector is one that combines the expertise of both the water company and their framework delivery partners. By utilising a collaborative approach and utilising Benchmark Estimating Software, companies can ensure that their projects are completed on time, within budget, and to the highest standard.
One of the key challenges during AMP8 will be managing inflation. As prices for materials and Labor are expected to rise, it is important for companies to have a system in place to regularly adjust their estimates accordingly. This ensures that projects are not underfunded and that budgets are not exceeded. By incorporating inflation estimates into their overall project estimates, companies can ensure that they are able to meet the challenges of AMP8 head-on.
Another important factor to consider during AMP8 is the fluctuation of costs. The cost of materials and labour can vary greatly depending on factors such as location and availability. By regularly re-evaluating estimates, companies can ensure that they are not caught off guard by unexpected changes in costs. By forecasting costs using dynamic estimating and benchmark estimating software, companies can be better prepared for any challenges that may arise during AMP8.
In addition to managing inflation and fluctuating costs, dynamic estimating will also play a crucial role in managing changing timelines during AMP8. As projects progress, it is not uncommon for timelines to shift and change. By regularly re-evaluating estimates, companies can quickly adapt to these changes and ensure that projects are completed on time and within budget.
Water utilities will also need to manage their framework delivery partners effectively to ensure that projects are delivered on time and within budget. This includes having clear communication and regular meetings, setting performance targets, and holding partners accountable for meeting these targets. By effectively managing their framework delivery partners and utilising benchmark estimating software, water utilities can ensure that they are getting the best value for money and that projects are delivered to the highest standard.
In conclusion, dynamic estimating is essential for companies in the UK water sector, particularly during AMP8. By regularly re-evaluating estimates, effectively managing framework delivery partners, and utilising benchmark estimating software, companies can ensure that their projects are completed on time, within budget, and to the highest standard. This collaborative approach, as outlined by the research from British Water, will help companies to meet the new regulatory standards, stay competitive, and ensure a sustainable future for the industry.