Costain saves £15m on Welsh road job

02/06/2011
Highways Reporters

Costain has helped to deliver £15million worth of cost savings for a major road project in Port Talbot through managing innovative client specific solutions and value engineering.

The Early Contractor Involvement phase of the Port Talbot Peripheral Distributor Road Stage 2 project, between April 2009 and October 2010, led to £15million of savings against the original tender.

This was delivered through having a dedicated team from Costain and the client, Neath Port Talbot County Borough Council, reviewing the scheme’s objectives.

Value Engineering involves developing the same or better product while using fewer resources. Some of the solutions included changing the carriageway foundations from piling to reinforced earth together with surcharge and settlement periods, and amending road layouts to reduce carriageway areas.

“Working with the client, we used a three-stage Value Engineering process which focused our efforts on ideas that were more likely to deliver value without compromising on quality,” said Charlie Sleep, Planner for the scheme.

“Throughout the process, we maintained a running total of the potential and achieved savings. This allowed us to determine which ideas were worth pursuing further at each stage of the process, whilst keeping a focus on the target savings required."

The actual construction budget for the scheme was £84 million but this was eventually brought down to £69 million.

“We’re delighted with the results which represent an excellent example of working together to find client-specific solutions,” said Rhys Griffith, Project Manager for Port Talbot PDR scheme.

“The Value Engineering delivered project savings which made the scheme affordable and ensured that Transport Grant funding was provided by the Welsh Assembly.”
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