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DIO awards Gleeds new cost price analysis contract

Posted 10 September 2020 · Add Comment

The Defence Infrastructure Organisation (DIO) has awarded the Cost Price Analytical Capability (CPAC) contract to international property and construction consultancy Gleeds, which will make DIO a more intelligent customer when costing infrastructure programmes.

Above: Ken Munro, Defence Director, Gleeds.
Courtesy Gleeds

The first Discovery and Design phase of the contract is worth approximately £2-million. The contract if fully taken would have a duration of nine years and an estimated maximum value of £20-million.

This new solution will also provide better delivery of estimated costs and cost intelligence for new build, operation, maintenance and refurbishment work on the Defence estate.

At present DIO goes to the market for information on costs. The new contract will bring this expertise in house. This will be more cost-effective way of gathering this knowledge and will ultimately provide better value for money for the taxpayer.

This change to ways of working will help DIO to provide better forecasts of costs, obtain better performance data from DIO suppliers, improve existing cost estimating abilities and ensure that DIO makes better informed investment decisions.

Nick Wilkinson, DIO Commercial Director, said: “This contract demonstrates how DIO wants to innovate and do things differently.

“This new way of working will ensure that DIO has access to the most comprehensive information and data. This will allow us to be as efficient and effective as possible when procuring suppliers and planning bespoke projects for Defence.”

Ken Munro, Defence Director, Gleeds said: “We are very excited that Gleeds has secured the contract to deliver DIO’s CPAC service. This is exactly the sort of digital future that we and our key supplier PwC have embraced and my team is delighted at the prospect of combining our subject matter expertise with DIO’s deep knowledge of end user requirements to deliver this capability.

"This is a visionary step that has been taken by DIO and we are really looking forward to working with Nick and his team to realise the significant commercial and financial planning benefits that they have identified.”



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