Quality and cost effectiveness are two complementary and inter-related factors that must be considered with precision and care in infrastructure development projects in all sectors. They are often considered as factors in opposition to each other: an increase in quality will result in a decrease in cost-effectiveness and vice versa, but in reality the relationship between these two factors is far more complex, and their evaluation must cover the whole life cycle of a project.
Cost cutting (and reduction in quality) at an early stage of a project may often result in increased costs later on, making the project less cost-effective, less viable or even non-viable. This is often a critical factor in the evaluation of competing bids for a project; a bid that appears to be less expensive may end up costing more for the public sector body.
CIID is developing ratings systems for the various stages of project development and implementation across sectors, for factors including:
Financial model and structure
Quality of delivery
As infrastructure project methodology and technologies evolve, CIID will conduct an ongoing refinement of ratings and benchmarks, and the parameters that must be included in such evaluations.
Please contact us for further information, or if you would like to contribute to this process