NEW YORK--(BUSINESS WIRE)--Today, multinational consultancy Linesight releases the initial findings of its pioneering initiative to benchmark data from global life sciences construction projects with a combined value of US$13.9bn across the sector. The research shows that the ‘Lang Factor’ which has been used as standard in the life sciences sector to estimate project costs has limitations and can be significantly improved. The Lang Factor uses the equipment planned for a new facility as the basis to estimate an early-stage cost forecast for facility construction. Linesight’s data indicates that developing a Lang Factor from a more extensive dataset of projects across a number of large life sciences organisations is more powerful and insightful than simply having a Lang Factor developed from one organisation’s project data. It allows for Lang Factors to be broken down into facility types, rather than a broad-brush approach, and factors in peer benchmarking.
Nigel Barnes, Director of Life Sciences, Europe, Linesight said: “This is hugely significant for life sciences construction projects, because it shows that the effectiveness of the traditional ‘rule of thumb’ used to cost and plan future projects is limited. In contrast, by using Linesight’s benchmarking data, a far greater degree of accuracy in forecasting budget and schedule is possible than when using the traditional Lang Factor formula. This can powerfully support the initial case for future projects with compelling data and, crucially, provide a much higher degree of predictability.”
The ongoing benchmarking initiative, which formally launched in January 2021, now involves 16 life sciences companies, with six additional organisations having joined the collaboration recently namely; CSL Behring, Resilience, Takeda, Organon, Roche and Thermo Fischer. These companies now join the other coveted participants in the initiative, including AstraZeneca, Amgen, Bayer, Biogen, BMS, Kite Pharma, Merck, Pfizer, GSK and WuXi Biologics. Linesight runs the global benchmarking initiative on a pro bono basis, and participation is open to any life sciences organisation who is willing to share their project data. Linesight manages the data in a highly confidential fashion, with strong ethical walls in place to protect the participants project information. This is strictly governed.
Linesight’s dataset has quadrupled since the inception of the project and with new members continuing to join the initiative, it is expected to yield further insightful results in the coming months. Since schedule intelligence and cost information are equally important to the participants, Linesight has focused on capturing both datasets. Linesight then cleanses the data from a confidentiality perspective, analyses and interprets it and shares the anonymous results emerging via an interactive dashboard in consultation with their subject matter experts.
Barnes said: “Construction projects in the life sciences sector differ greatly from one another, posing a barrier to benchmarking on a project-by-project basis. This has led many to assume benchmarking is not possible within this sector. However, we break down each project into multiple detailed components that can then be compared on a like-for-like basis. As the life sciences sector moves forward with its current phase of record growth globally, the results we are starting to see emerge are already proving to be crucial in decision making to support the sector to roll out the construction required.”
Commenting on his participation in the initiative, Andrew Casey, Global Estimating and Benchmarking Manager at AstraZeneca said:
“We at AstraZeneca were early joiners in this initiative, and participation has proven hugely beneficial to enhance our internal review process. While we continue to use our internal sources to look at our own database of project information, leveraging the external benchmarking intelligence that we garner from the Linesight initiative is very powerful in the capital project review and approval processes. It allows us to review the expected cost/schedule of a potential project, as well as existing project performance against sectoral norms and our peers. We can look at elemental range indicators, schedule milestones and high-level comparisons, to equip ourselves with the information needed to make data-led decisions.”
To participate in this program, please contact lifesciences@linesight.com
About Linesight
Linesight is a multinational consultancy firm with over 48 years' experience, providing cost, schedule, program and project management services to a multitude of sectors including Life Sciences, Commercial, Data Centers, High-Tech Industrial, Residential, Hospitality, Healthcare and Retail. Linesight’s specialist project teams, each with specific skills and experience, provide faster project delivery, greater cost efficiency and maximum value for money for their clients. For further information, please visit www.linesight.com
