Lifecycle Cost Modelling

16 January 2018
As one of the largest asset owners in the UK, Network Rail strives to ensure that its asset management policies are demonstrate value-for-money to the taxpayer, result in a safe, high-performance network, and account for accurate capital budgeting.

Strategic Consulting constructed ‘Tier 1’ and ‘Tier 2’ (portfolio and cohort) models for a number of key asset types.

These models combined data from across NR’s numerous but disparate asset management systems and take into account tonnage, deterioration, intervention strategy and input cost, amongst other factors. These models enabled Network Rail, for the first time, to predict the long-term outcomes and efficiency of their policies, and to improve the investment planning, budgeting, and scenario planning.

We have worked for Network Rail across two five-yearly regulatory submissions, providing sophisticated investment and decision analysis tools, with the aim of supporting investment planning and allocation across the new Network Rail regions.


Our models were of sufficient quality to provide evidence to the regulator (ORR) for Network Rail’s capital and operational planning for structures, civils and track.

Other comparable assets did not achieve this due to a lack of evidence provided to the regulator.

Our work has contributed to Network Rail securing over £1billion in funding from the regulator.