Welcome : The Cross Whitehall Estimating Group (CWEst)

Building a Collaborative Network

 Cross Whitehall Estimating (CWEst) Group

During this short presentation we will share with you

▪ The purpose and origin of CWEst

▪ The importance of Estimating and how we are raising its profile

▪ How we are collaborating and benefiting from our Group’s work

Today’s Speakers
▪ Gary Hill, Cost Assurance and Analysis Service (CAAS)

▪ Sirish Parekh, Highways England (HE)

▪ Aleister Hellier, Infrastructure Projects Authority (IPA)

 Cross Whitehall Estimating (CWEst) Group

Who are CWEst and what is its Purpose?

▪ Simply put, we are a Group of Estimating and Costing leads from various UK Government
Departments and Arms Length Bodies (ALB’s) with the common goal of learning, sharing and
collaboration.

▪ Our philosophy is captured in our Mantra:

▪ “Simplify Standardise, Systemise and Professionalise Project Estimating Processes
across Whitehall”

▪ Our Vision:
▪ “Bringing together estimating experts across Government/Client organisations to
promote leading practice with a simple ethos of trust and Collaboration”.
 Cross Whitehall Estimating (CWEst) Group
CWEst History and Origin
▪ An idea crafted over a cup of coffee
o We had common issues and challenges
o How we could benefit from learning and sharing
o What would a Cross Whitehall Group look like?

▪ Launching the Group

o We created some Terms of Reference
o Launched the “Cross Whitehall Technical Group” (CWTG) which was later restructured to become
CWEst
o Held our first meeting which was attended by circa 8 Departments / ALB’s

▪ So we planted the little Acorn and watched as it started to grow

 CWEst Journey and Growth
Official
Recognition
30
Identity &
Sponsor
Re-brand
Membership

Steady
20 progress

1st
Meeting
10
Idea Flyer & Growth
Messaging Strategy

April 19 June 19 Sept 19 Dec 19 Mar 20 June 20 Sept 20

 Cross Whitehall Estimating (CWEst) Group
CWEst Current Work Streams
▪ Capability Improvements
o Development of estimating standards and practices

▪ Data Sharing
o Data sharing to improve benchmarking

▪ Leading Practice Development

o Identify and Share leading practices

▪ Advisory Panel
o Deep Dive panel to solve common technical estimating issues

▪ Seniors Guide to Estimating

o To provide an overview of estimating for Seniors

▪ Support to IPA’s Estimating Practices Guide

o Development of estimating standards and practices
Importance of a Cost Estimate
 Importance of a Cost Estimate
To make informed decisions by
▪ Quantifying potential solutions, i.e. options and scenario analyses, including
assessing optimal option(s), even if by relative comparison.

▪ Provide confidence in a project’s delivery to cost and schedule (at various stages).

▪ Observe impact on changes (e.g. scope, design, regulations/standards).

▪ Identify cost drivers and their impact;

▪ Assess potential risks, to minimise them occurring and better prepare for them;

▪ Review possible opportunities, to maximise benefit realisation.

▪ Communicating quantified assumptions and decisions to key stakeholders to

encourage a collaborative environment from start to finish.

▪ Supporting Project Controls

 Importance of a Cost Estimate
For example: Decisions & Drivers

whole life cost (£) carbon (tonnes CO2e) key drivers (sensitivity analysis)

OPEX CAPEX
 Importance of a Cost Estimate
Estimating Principles
▪ Requirements and alignment with project (e.g. WBS)

▪ Robust basis of estimate with clear evidence trail aligned to requirement(s)

o e.g. MDAL

▪ Roles & Responsibilities

▪ Maturity assessment (e.g. Data, Estimate, Project)

▪ Source data/information and methodologies

▪ Risk, Opportunity and Uncertainty

▪ Assurance and Governance

▪ Integration with Project Delivery

▪ Change control
 Importance of a Cost Estimate
Estimating & Project Delivery
▪ The Need for a Living Quantified Plan (Estimating)

▪ The Need for Resilience (Project Delivery Team)

cost
scope
change actual cost

risk estimate

opportunity

time
 Importance of a Cost Estimate
Estimating & Project Delivery
▪ The ‘Estimating Funnel’

▪ Estimate structure

Overhead
Construction/
Manufacture

Risk
cost cost

O&M
Development
Design
Feasibility OBC FBC time
 Importance of a Cost Estimate
The CWEst Group approach
▪ Good practice estimating has been around for decades, mostly in theory, with limited
implementation in practice.

▪ The CWEst Group is addressing this by:

o Agreeing the Success Criteria of an estimate
o Identifying key issues faced within estimating
o Addressing key issues and optimising the estimating
discipline via Workstreams
 Importance of a Cost Estimate
The CWEst Group approach
Data Availability
Relevance
Context
Granularity
CWEst Group Workstreams
Maturity
Provenance Capability Improvement
Scope Design maturity vs Estimate maturity
Estimating Timing Data Platform
(Best) People & Capability & experience is variable
Practice Behaviours Stakeholders expectations Leading Practice
and/or Org. Lack of understanding
Advisory Panel
Education/Training required
Policy
Under representation of costs
SRO Guidance
Process Discrete estimates as opposed to 'Estimate Journey'
Tracking estimating through project life & performance links IPA Estimating Practice
Whole life perspective
Not integrated with stakeholders' processes
Repeatability / Inconsistent/Erratic
Deterministic estimates developed at early stages that
should be Range estimates
Contingency Diminishes learning opportunity.
Introduces shortcut and lack of transparency
Needs context (e.g. RCF)
Collaboration
 Traditionally, Government has a reputation of not being very
collaborative with its delivery organisations.The IPA wants to
change that reputation.
▪ In the past this is probably a fair comment. However, government is moving towards becoming more collaborative with its delivery
partners.

▪ As we have seen in Gary & Sirish slides earlier, the IPA sponsors CWEst and helps to facilitate by bringing organisations together (not
withstanding MoD/Highways England Chair roles) to collaborate and share and lastly, to support and inform government. The
benefits…

▪ As well as IPA sponsoring CWEst, DfT have been doing some brilliant work and collaboration with its delivery partners under the TIES
banner.

▪ The IPA provides training to government SROs through the MPLA (Major Projects Leadership Academy) run by Oxford Business School
and training for Programme Managers/Project managers through the (PLP) Project Leadership Programme run by Cranfield. Each
cohort bring together delivery professions from across government departments. Creating a network and collaborative of network
outside your existing organisation and breaking down silos.

▪ In 2018, IPA’s former CEO published a blog “Crossing the Valley of Death - Bridging the Gap between Policy Creation and Policy
Delivery in Government” When I think of this, I think of how we, Government, absolutely need to work and collaborate with our
delivery organisations to ensure we provide policy and projects that are based on reasonable assumptions and inputs, trust and
collaboration so that we set-up our projects and policy outcomes with the best chance of success and we do that by working together.
 Questions and Feedback

Hopefully you have found the presentation interesting

▪ We would be pleased to learn from other peoples experience from undertaking similar
work and initiatives.

▪ We will now try and answer some questions.