Costain's value engineering approach has identified more than £110 - and counting - of efficiency savings for its water customers.

The challenge

Water companies are making record levels of investment to fix pipes and water systems. More than ever before, the sector is looking to find efficiencies in projects and ways of working to deliver more for less.

Costain's value engineering process

Costain uses value engineering as a systemic approach to deliver lower-cost infrastructure faster and more efficiently while maintaining high performance, quality and reliability.  

The approach is being used across its AMP8 design and build projects, which includes water and wastewater programmes with Northumbrian Water, Severn Trent Water, Thames Water and Southern Water 

Costain’s project teams are empowered to generate, analyse, and adopt ideas or techniques that help deliver projects simpler, quicker and at a lower cost. Many of these solutions involve Production Thinking, which combines modern methods of construction with innovative new technologies and techniques to boost productivity and deliver products built in a factory environment. 

These solutions are realised through several means depending on the conditions of the project. One of these is asset optimisation, whereby the performance of existing assets is maximised to promote low or no build solutions.  

Savings are also achieved through:  

  • Offsite manufacturing and design for manufacture and assembly (DfMA)
  • Standardisation
  • Lean production and minimisation of waste
  • Programme optimisation
  • Digital tools or data analytics
  • Optimised procurement practices

Costain’s approach is driven in close collaboration with customers, alliance partners and supply chain, through integrated value engineering workshops for capital delivery teams and key stakeholders. 

More than £110m in identified cost savings

The approach has enabled Costain’s project teams to identify more than £110m of cost savings to date for its AMP8 customers with more than £96m already delivered. Further efficiency savings will be identified as projects progress to construction phases. 

For each project, the potential cost savings are visualised via an interactive, live tracker providing greater transparency and clarity for the asset owners. 

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A screenshot of our live tracker detailing efficiency savings

Matt Bateman, Sector Director, Water at Costain, said: We’re working with the UK’s biggest water companies to make critical upgrades to the water system. By embedding principles such as constructability, production thinking and modern methods of construction at the earliest possible stage, we’re delivering efficient and cost-effective projects for our customers.  

“Our value engineering approach is promoting greater collaboration and knowledge sharing with our customers, enterprise partners and supply chain. Together, we’re accelerating the infrastructure improvements and upgrades needed to enhance the resilience of the UK’s water system.” 

Our value engineering approach is promoting greater collaboration and knowledge sharing with our customers, enterprise partners and supply chain.

Matt Bateman Sector Director, Water, Costain

Costain applies its value engineering process to projects in its other infrastructure sectors, including road and rail.

Want to learn more about value engineering? Get in touch with our teams: