Quickly estimate infrastructure costs for a passenger transport operator

Our Client

Our client is one of the world’s leaders in the design, construction, and operation of passenger transport systems. It is involved in the entire value chain, from engineering studies, design, commissioning, and operation of complex infrastructures. Throughout investment programs, and particularly during budget definition phases, numerous cost estimates must be made.

Challenges

Cost estimation is a strategic challenge, especially given the significant amounts involved. Moreover, it is particularly time-consuming. The Procurement Department, in collaboration with the Real Estate Department, aims to develop a new, faster approach using the easyKost software.

Implemented approach

Several types of expenditures were initially deployed: complete lots, supplies, service provisions…

The approach was structured around:

UA data collection process organized with the client’s teams based on price schedules, DGPF (detailed price lists)… from past projects/contracts or ongoing tenders.
A joint effort to identify cost drivers. Below are a few examples:
- Complexity of construction sites
- Duration of work
- Technical characteristics of supplies
- Suppliers
- Dismantling/installation
- …
Building models using easyKost
Real-time updating of models with new quotations

Client benefits

The main benefits of using easyKost have been as follow:

Reduced Time for Cost Estimation. Budget estimates in seconds, enabling multiple simulations compared to the traditional “economist” approach, which is much more time-consuming.
Improved Accuracy. The integration of real-time data allows for market variations to be considered, reducing discrepancies between forecasts and actual costs.
Identification of Optimization Opportunities. A predictive analysis-based approach helps identify optimization levers (choice of materials, complexity reduction, optimization of installation solutions, etc.) and focus on key cost drivers.
Cost Savings in Supplier/Service Provider Negotiations. These AI and analytics solutions help detect inconsistencies in supplier/service provider quotations (DGPF), enabling better negotiations. Inconsistencies in price schedules, which are almost impossible to detect manually, are highlighted.
Better Capitalization and Inter-company Collaboration. The AI-processed data is collected, allowing for improved capitalization on essential project/construction data. Collaboration between different departments (Cost Estimation, Program, Procurement, etc.) is thereby strengthened.

Application to client’s other categories

After these initial successes, the client deployed the same process across a large number of other categories in the field of infrastructure construction and services.