As a £14.8bn programme in the public eye, the need to manage costs and ensure value for money is paramount. The creation of an initial control baseline was critical in satisfying sponsors and achieving the ‘green light to proceed’ and was the fundamental basis upon which costs were controlled. The baseline is supported by a standardised work breakdown structure allowing variances in cost performance to be identified and managed effectively.

The Cost Management function in Crossrail is responsible for:

• Providing programme level cost planning/estimating, budgeting, forecasting, reporting, managing and control of all the costs associated with the programme;
• Minimising the Anticipated Final Cost (AFC) and driving best value;
• Ensuring the Anticipated Final Crossrail Direct Cost (AFCDC) remains within the funding envelope
• Integrating Cost Management requirements with Industry Partner practices and ensuring that they deliver in accordance with the Crossrail Sponsors’ Requirements;
• Setting robust cost baselines pre and post contract award;
• Controlling cost through pro-actively identifying and managing change;
• Operating a robust cost forecasting process to provide the appropriate financial provision;
• Providing reliable, accurate and timely cost performance data;
• Integrating with programme financial reporting; and
• Being efficient to operate and align with the projects systems architecture.

This cost management learning legacy seeks to share the key cost management procedures used on the Programme which may be of interest to other projects establishing their own cost management regimes including:

• Cost Management and Forecasting Procedure: A single procedure providing timely and consistently accurate cost information and which pro-actively supports the delivery of Crossrail’s cost objectives;
• Estimating Procedure: A centralised estimating approach, based on using consistent procedures, and providing sufficient capability for Crossrail to provide granular estimate detail by contract, in addition to robust capex and opex benchmarking to enable value for money (VFM) demonstrations to stakeholders;

The learning legacy also includes lessons learned on key aspects of cost management including setting up and implementing Earned Value (including the use of ‘earned schedule’ as a supplemental performance measure focused on schedule progress), Crossrail’s Approach to Estimating, and developing the Initial Control Baseline which was fundamental to achieving full delegated authority and funding to deliver the programme, including the optimisation and de-risking of the delivery programme, leading to significant savings.