Multi-disciplinary Steering Group
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overview
Multi-disciplinary Steering Group
Our multidisciplinary steering group of diverse experts, professionals and member companies have the required wealth of the UK and international expertise on cost assurance and audit on infrastructure projects and construction contracts. Through our CSR and governance initiative, we are working with funders, clients, and contractors to drive change and transformation industry-wide.
Clients
Our Group Members
members
Our Legal & Contract Specialists
members
Our Infrastructure Project Client Specialists
members
Our Audit & Assurance Specialists
members
Our Multi-disciplinary Contractors
Our Key Outputs
Global Expertise
Key Output 16
In this report, we emphasize the value of audit and assurance on major infrastructure projects in ensuring transparency, accountability, and providing independent assurance to funders, investors and taxpayers in a landscape, that is increasingly complex and heavily scrutinised.
Key Output 15
The insights and answers to various questions are elaborated on in this KO15 report, which is essential reading for the wider industry as complexities and legal challenges of sound contract management intensify.
Key Output 13
Contract management is set to undergo decades of change as a result of recent advancements in generative AI. The creation, evaluation, and tracking of contracts could all be fundamentally altered by these new technologies. One viewpoint is that they could obscure procedures and increase reliance on lawyers.
Key Output 14
The role of data analytics, artificial intelligence (AI), and process standardisation on infrastructure cost estimates and assurance is expected to be transformative. These technologies will significantly enhance the accuracy, efficiency, and reliability of infrastructure project costs, leading to better decision-making, cost control, and overall project success.
Key Output 12
In Key Output 12, our steering group examines the Current Challenges with People and Cost Assurance and Audits on Infrastructure Projects. This output developed by our steering group of experts includes discussions on key themes relating to the topic, real-life issues, practical examples and examines the future outlook for cost assurance on infrastructure projects.
Strategic Collaboration
Key Output 11
In Key Output 11, our steering group examines the risks, market forces and supply chain challenges. We discuss the topic as usual from a multi-disciplinary perspective. We explore the topic from the perspective of funders, clients, legal and contract experts, audit and assurance experts and contractors delivering infrastructure projects. This output developed by our steering group includes discussions on key themes relating to the topic, real-life issues and practical examples and examines the future outlook.
Key Output 9
KO9 examines the future assurance of infrastructure projects and construction contracts. We discuss these topics from a multidisciplinary perspective and include relevant questions and answers and perspectives from clients, contractors and subcontractors. KO9 is led by a diverse group of experts from our member companies and is necessary working on infrastructure and construction projects worldwide.
Key Output 10
Our Key Output 10 (KO10) looked at the future assurance of infrastructure projects and construction contracts. Including relevant questions and answers as well as perspectives from clients, contractors and subcontractors, KO10 is led by a diverse group of experts from our member companies and is a necessary for those working on infrastructure and construction projects worldwide.
Key Output 8
In our Key Output 8 (KO8), we emphasise the importance of leveraging technology to drive cost assurance and support the audit of infrastructure projects and construction contracts. We highlight the key role of digital transformation in delivering a construction industry that is fit for 2050 and beyond.
Industry-wide Guidance
Key Output 7
We shared our Key Output 7 – Cost assurance and audit in practice with the industry. This guidance document answers many frequently asked questions about cost assurance and auditing for infrastructure projects and contracts in a question and answer format. We also looked at the use cases for Primavera Unifier technology for contract management, collaboration, cost control and governance as presented by Oracle.
Key Output 5
In August 2021, our wider industry shared our key output 5 – People Perspectives. This incorporates high-level guidance led by Network Rail/High Speed 2 (HS2), with technical best practice presentations led by Rail diary. This included the latest thinking on people from many perspectives and experts. Special thanks to all our members and key contributors.
Key Output 6
This quarter we look at cost reporting in Key Output 6. This is a broad concept, from the spectrum of factors to be considered for effective cost reporting, to compliance to standards, contract form, and cost recovery requirements, to reliance on data from third parties from multiple sources for decision making.
Key Output 4
In April 2021, our multidisciplinary steering group shared our Key Output 4 – Legal Perspectives with the industry. This contained insights and technology use cases from Cemar – on the Think Project at Hinkley Point C. We hope that the wider industry will find the content beneficial. Thanks to Eversheds Sutherland, who led this output, and to the key contributors and members.
Thought Leadership
Key Output 2&3
Summary guidance and the latest thinking on Frameworks and Standards led by Turner & Townsend and The Orange Partnership. This includes the latest thinking on Contracts and Key Terms led by In Construction Consulting and Blake Newport. It featured best practices on NEC 3/4 Contracts and a technology use case by Ideagen on JPL / NASA. We hope you find these beneficial.
Key Output 1
In September 2020, following the inaugural meeting of our multidisciplinary steering group in June 2020, we shared our Key Output 1 with the wider industry.Key Output 1 identifies key issues, including a summary of recommendations from founding members and the latest thinking from multiple lenses and industry experts. This included a technology use case from Ideagen / Pentana Audit.
Jim McCluskey
Kier Group – Commercial Manager
With the widespread use of NEC cost-based and alliance contracts, cost assurance & cost verification has become a necessary step to provide the transparency and assurance required by employers, clients and project managers. The steering group has prepared several key outputs from groups of like-minded professionals who have examined various key aspects in detail.
Published Articles on CICES
Our Professional Publications
- KO 13: Current Developments with Legal Contracts & Technology
- KO 12: Current Challenges with people & Cost Assurance Audits on Infrastructure Projects
- KO 11: Risks, Market Forces & Supply Chain Challenges
- KO 9 Future of Assurance
- KO 8 Technology
- KO 7 Cost Assurance & Audit in Practice
- KO 6 Cost Reporting
- KO 5 People Perspective
- KO 4 Legal Perspective
- KO 3 Contracts & Key Terms
- KO 2 Standards & Frameworks
- KO 1 Cost Audit Key Issues
- Engagement Conference
- Assurance on Sustainable Projects and Investments
- Current Challenges with People & Cost Assurance Audits on Infrastructure Projects
- Investment In Green Energy Infrastructure
- The Need for Resilience on Infrastructure Projects
- Risk, Market Forces & Supply Chain Challenges
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Open Book Accounting Principles – Alliance and Cost-Based Contracts
sectors
Our Sectors
team
Our Experienced Associate Team
Frequently Asked Questions
FAQ
What should a best practice cost assurance and audit framework look like?
Our Steering Group in Key Output 2 recommended a three-line defence model as the best practice. The first line of defence consists of control functions like cost management, an element of commercial management that ensures that the contract is administered correctly and assesses the accuracy of contractual costs. The second line of defence for cost assurance may involve strategic controls to provide added confidence to key external and internal parties that project risks will be minimised and objectives met transparently and collaboratively. The third line of defence involves independent cost verification audits to comply with international auditing standards. It is recommended that a robust cost assurance and audit best practice framework be used. The framework above incorporates seven key aspects: risk-based assessment of the control environment, appropriate and agreed sampling methodology, and application of independence and materiality concepts on assurance engagements and in accounting.
Why is an initial risk assessment fundamental?
When identifying objectives, a risk assessment based on baseline information should be used to prioritise areas for improvement at a strategic level and to support key project objectives. When selecting which contracts require additional cost assurance, several factors should be considered, including:
- Type of contract being used
- The risk profile of the contract (complexity, value, stakeholder requirements, conditions which may impact progress/profitability such as ground conditions or damages)
- Warning signals (e.g., has estimated final cost increased substantially, has communications and relationships have been difficult, has there been a failure in the supply chain)
- Spend profile of the project
The above consideration will influence whether a project requires additional assurance and assist in targeting which areas require verification. For example, an analysis of the spend profile will guide the sampling methodology for cost verification.
What is the outlook for cost assurance and audits?
Historically infrastructure in the UK has been more expensive with lower-than-average productivity than its European and US counterparts. The UK government has actively communicated future expectations through reports such as Transforming Infrastructure Performance: Roadmap to 2030, National Infrastructure and Construction Procurement Pipeline 2020/21 and the Great British Railways: Williams-Shapps plan for rail. Our recommended best practice builds on CIMAs seven-dimensional cost transformation framework to support a transformative infrastructure sector, which begins with a cost-conscious culture that actively manages risks. Next, profitability is key; therefore, contract fees, project budget and fees for an assurance engagement must be reasonable. This means balancing cost certainty versus supply chain profitability because projects need to be cost-efficient but profitable and viable, or there is a trade-off that can drive the wrong people’s behaviours, as highlighted in Key Output 5.
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