We already have a cost model – why do we need another ? – Typically, cost models that are developed in-house tend to address immediate project requirements and are difficult to “grow” with the project. They may only give a narrow, initial view. They can be difficult to adapt to changing project specifications, and don’t always lend themselves to “what-if” analyses either. As projects become more complex comparing multiple options can be awkward, and confusing. Our highly-structured system has been designed from the outset to be flexible, adaptable, and to facilitate sensitivity testing across a range of options because (in our experience) there is rarely just one single answer.
How is your model different ? – In our experience, most cost models are focused on a specific element of a project and consequently there’s a risk that the wider cost implications aren’t included, which could give misleading results. Our approach can model the whole operation, from refuse collection, transfer, through to processing and disposal. We can account for collection and transfer costs, CapEx and OpEx, management costs, overheads, income, tax, contract incentives and differential indexation – to name just a few – and we can adapt the model to address any specific requirements. This can give a genuinely strategic overview, and help support clients through a more robust option appraisal process to a better result.
How do I know that the model is accurate ? – We always start with a model baseline, which replicates where the client organisation is now. This is useful as a reference point, but is also used to calibrate the model against known operational and budget-based data. Once this calibration is complete and has been “signed off” (usually in collaboration with representatives from finance) all future models are built using the baseline as a starting point.
Can I have a copy of the model ? – Yes. We will provide full copies of the results (tailored to suit your requirements) but it’s not practical to release a fully functional copy of the model. The models are extremely complex and without a understanding of the structure, operation and programmed functions, it would be very easy for a casual user to produce misleading results and not necessarily be aware of it. So, for security, we don’t release functional copies of the model to end users.
Anything else ? – If you have any other questions, or would simply like to talk to someone please contact us.