Setting an Appropriate Project Analysis Budget

Often projects are not analyzed until a few years (sometimes months) before they are required.

This means that emphasis is placed on the quick design and construct process, while significant life cycle costing issues are omitted altogether or at best grossly neglected.

Allowances must be made for analysis to be completed well ahead of the project entering the final design & construction phases.

By using the Confidence Level Rating (CLR) approach, an organization can bring the projects up to an adequate confidence level at appropriate times over the asset management planning horizon.

Adequate budgets are needed for R&D or project analysis throughout the asset management-planning period. This should be sufficient to enable a project to be brought forward with the appropriate confidence level rating.

The CLR gap analysis can drive the necessary improvements in a logical and cost effective manner at the time acquired. This approach is based on the same philosophy and logic for the organization's asset management improvement programs.

As these projects emerge from the planning processes and scenario assessments, they will generally have a confidence level of between 50 and 60 percent. The two key business drivers at this point are:

• The timing of the works, i.e. when they will be required to be put into service
• The project estimate.

From this point on however, we need to drive the improvements we make in the individual projects using the CLR gap analysis method.