Defence: Value for money is more important than ever

March 7, 2025

Ridge cost management partner Wayne Harper explains how to get the most bang for the taxpayers’ buck on these specialist, nationally important projects

Value for money is of paramount importance on defence projects, closely followed by cost certainty and on-programme delivery. Budgets are constrained, and ultimately this is taxpayers’ money, so we need to ensure that every penny is spent wisely.

That means identifying risks as early as possible, and proactively mitigating them. At Ridge, we’ve been delivering defence projects in the UK and overseas for many years, and our multidisciplinary teams work closely to ensure budgets are set accurately from the outset and maintained throughout.

Here are four key strategies that we use to control costs and achieve predictable outcomes:

Explore alternative procurement routes

Our project management teams work with defence clients to help them identify the best procurement strategy from various options, including commercial vehicles. This involves contracting with a commercial organisation to deliver facilities on the client’s behalf, going outside the Defence Infrastructure Organisation process. This can speed up delivery dramatically, and increase cost certainty by avoiding programme delays that cause costs to rise.

Maintain a high-quality cost database

Accurate estimating is key for maintaining project momentum, and avoiding the need for value engineering at a later stage. At Ridge, that starts with our internal cost database, which has been honed and refined over many projects in this highly specialised sector. Defence facilities are typically bespoke, and they tend to be more expensive due to their additional security requirements, which includes both physical security and active systems. There may also be special operational requirements during construction, such as the logistics of transporting materials to site via circuitous routes to maintain confidentiality. Being able to draw on robust, quality data at an early stage is essential for providing the cost certainty that our clients need.

Involve specialists early

That early stage certainty is particularly important when it comes to M&E, which can represent in excess of 50% of the total cost of a defence project due to their heightened security and resilience requirements. At Ridge, we are fortunate to have a dedicated M&E cost management team, who work closely with our designers, project managers and sustainability consultants. Because they have an intimate understanding of both building services and the cost implications of even minor enhancements, they can provide transparent, precise estimates even before a design is fully developed.

Get the whole-life picture

Capital cost is only half the story on defence projects. These facilities will also need to be maintained for a design life of 60 years or more, and the choices that are made at delivery stage can have a significant impact on operational budgets. We look beyond initial capital expenditure with whole-life costings that include operations, maintenance and sustainability, to give defence clients visibility of ongoing spending requirements, and help them make better decisions to achieve long-term value. This might include opting for more hard-wearing finishes or cladding materials that will have a longer life, for example, or installing more efficient mechanical and electrical systems to cut energy bills.

At Ridge, we believe that a cross-discipline approach is vital for making sure there are no surprises, and that projects are set up for success from the earliest stages. Our teams work closely together to support defence clients to make confident decisions and deliver long-term value – ensuring that every pound that is spent strengthens readiness and supports those who serve.

Wayne Harper is Associate Partner in the Cost Management team at Ridge. You can contact him at wharper@ridge.co.uk. www.ridge.co.uk

A multidisciplinary Ridge team will be at Stand 66 at the DPRTE on 26 and 27 March 2025.