Resolving a Bottle-Neck Decision in a Public Infrastructure Megaproject

Fact-based analytical decision foundation and a management selection of the optimal solution

The client's problem

A public transportation provider needed a strategy for how to optimally put in place a new sub-infrastructure worth several million euros, and a prerequisite for the next phases. An objective decision model was required to provide transparency of facts and management dilemmas in order to determine the optimal method.

 

Our approach

The project followed four phases. Firstly, lessons learned from previous asset development projects were identified. Secondly, the requirements for the asset were identified in terms of minimizing the lifetime costs of the assets while fulfilling technical needs, minimizing operational risks and ensuring timely construction. Thirdly, the lifecycle costs for each of the possible construction methods were determined in terms of construction costs, maintenance costs and renewal costs. These costs consisted of both the direct costs associated with building the asset and potential indirect cost incurred by the company’s other assets depending on the construction method. In turn, a key aspect of the decision model was to clarify the complex interrelationship between the various construction methods and the total costs associated with the asset’s construction. Lastly, a thorough implementation plan for putting the asset in place was developed.

 

Value delivered

Significant reduction in complexity and costs. Hence, increasing the likelihood of successful delivery of the highly important public infrastructure mega-project.