Cost drivers of major infrastructure projects in the UK - October 2024

An exemplary sponsor will work closely with the client to set the budget and the high level outcome, will manage the external environment within which the client operates and will let the client guide the project with an appropriate level of oversight. [...] But when controlling for inherent characteristics of the schemes, such as whether the roads are built in urban or rural areas (which is itself a significant driver of cost in all countries) or the diameter of water pipeline, the apparent difference disappears.10 8 National Infrastructure Commission Cost drivers of major infrastructure projects in the UK Figure 1.1: The unit cost of UK’s infrastruc. [...] 22 National Infrastructure Commission Cost drivers of major infrastructure projects in the UK The effects of the failure to develop and maintain a clear pipeline of projects are most obvious in the rail sector. [...] National Grid oversaw the delivery of the first phase of the London Power Tunnels project on time and on budget, despite the inherent risks of boring deep level tunnels through London’s geology.51 24 National Infrastructure Commission Cost drivers of major infrastructure projects in the UK Alongside examples of good practice, which exist in both the public and private sector, there are structural. [...] The Commission would also like to thank the Institution of Civil Engineers, Agilia Infrastructure Partners, Boston Consulting Group, the French Chamber of Great Britain and the Spanish Economic & Commercial Office for their support in engaging with the project and organising stakeholder roundtables on behalf of the Commission.