Preparing for Road Investment Strategy 3: Enhancements

Description

The purposes of this study are two-fold. Firstly, it is intended to provide understanding to the ORR of the independently audited unit rates and assumptions underlying Highways England's internal scheme cost estimates, and that these are comparable with appropriate external benchmarks. Secondly, the study should provide the ORR with a better understanding of the way in which rates are updated over time. In doing so, the study should assess the extent to which improvements in efficiency are reflected in the forecast costs of future projects. We expect the outcomes of the study to shape the approach we take to assessing Highways England's plans for RP3. For example, if we have a high level of confidence in the assumptions underlying Highways England's forecasts, this will allow us to devote less resources to challenging the cost estimates for individual projects.

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