Module 03 · Delivery and Lifecycle Costing · Worked Exemplar
See the module applied
A six-month delivery review: variance analysis and AI assessment against the mobilisation baseline.
Heron Facilities Solutions
Meridian Property Group
Periods 1–6 (6 months)
£276,400 (Module 2)
£223,873
+£16,086 (+7.7%)
Building on Modules 1 and 2 — the mobilisation baseline, rate deck, TUPE position, workstream structure, and open challenge flags carry forward from the Module 2 handover. The delivery review tracks performance against that baseline at the six-month point.
See it in use
Variance analysis at Period 6
Workstream
Baseline (£)
Actual to date (£)
Variance (£)
Programme
£33,415
£31,200
–£2,215
TUPE and HR
£58,487
£72,340
+£13,853
Systems and IT
£47,875
£51,200
+£3,325
Training
£8,207
£7,950
–£257
Compliance
£4,571
£4,571
£0
Client management
£1,380
£2,760
+£1,380
Procurement
£53,852
£53,852
£0
Total
£207,787
£223,873
+£16,086 (+7.7%)
AI analysis — six dimensions
Delivery position assessment
Dimension
Assessment
Cost Performance
Amber. 7.7% over baseline before approved variation. Variation-adjusted position is favourable. Primary driver is TUPE pension exposure — an identified risk at mobilisation. Agency staffing is an emerging secondary driver.
Strategic Lens Review
Partially. Regional footprint established; Meridian relationship developing as planned. Margin compression from pension costs and agency staffing is eroding the 8–10% target. Current estimated margin at Period 6 run rate: 5.5–6.5%.
Variance Drivers
Primary: DB pension costs (£18,500 unbudgeted). Secondary: agency cover for two T1 leavers adding approximately £3,200 per period. Approved variation OC-001 is positive but requires monitoring in Periods 7–12.
Intervention Recommendations
HIGH: Complete T1 replacement recruitment before Period 8. MEDIUM: Margin review at Period 9. LOW: Formalise OC-001 scope before Period 7 actuals entry.
Overall Assessment
The contract is performing within acceptable parameters when the approved variation is factored in. The two material risks identified at mobilisation have both resolved. Agency staffing is the active management priority. A margin recovery plan should be prepared for Period 9 review.
This excerpt covers the variance analysis and AI delivery assessment. The full exemplar includes the complete Stage 1 input walkthrough — contract profile, baseline reference, rate deck revisions, workstream structure, period-by-period actuals entry, TUPE delivery-phase tracking, operational changes, and challenge flags — together with the full six-dimension AI analysis including the Challenge Flag Review dimension.