Article

    November 13, 2026

    Life Science: CapEx decisions drive facility costs before construction starts

    Life science capital expenditure (CapEx) is investment in long-term assets such as manufacturing facilities, equipment and supporting infrastructure. Early decisions on these assets drive project cost, compliant production and the ability to expand for years.

    Healthcare

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    Pharma and life sciences

    Life science facility

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    Anders Hummer

    Anders Hummer

    Global Service Line Director - Industry & Infrastructure Facilities, Buildings

    Industry data from 20 pharmaceutical construction projects worth more than USD 100 million found that 70% finished over budget, with an average overrun of 15% and a typical delay of four months.

    The lesson is not that every project will overrun. It is that the financial consequences of early decisions can be very large.

    And many of those decisions are made before construction begins.

    Decide which facility investments must be fixed early

    A life science capital project usually starts with a clear business need. The company needs more capacity. A product is growing. A pipeline is developing. A market needs to be served. Then the questions multiply.

    Where should the facility be built? How much expansion space should be protected? Can the grid support future production? How should water and wastewater infrastructure be sized? Which utilities need redundancy? Which parts of the facility should be permanent, and which should remain adaptable?

    Ramboll’s guide, Future-proofing your life science site, is built around a simple distinction: some decisions need to be made early because they become difficult. Disruptive, or expensive to revisit. Others can be phased until the business knows more.

    That distinction matters because capital can be wasted in both directions.

    A facility that is too rigid may require substantial reinvestment later. A facility designed for every conceivable future may carry expensive capacity that is never used.

    70%

    Of the 20 pharmaceutical construction projects analysed finished over budget.

    15%

    Was the average cost overrun.

    4 months

    Was the typical project delay.

    90%

    Of projects that exceeded budget experienced overruns in process equipment, clean utilities, and mechanical, electrical and plumbing (MEP) systems.

    70%

    Of the 20 pharmaceutical construction projects analysed finished over budget.

    15%

    Was the average cost overrun.

    4 months

    Was the typical project delay.

    90%

    Of projects that exceeded budget experienced overruns in process equipment, clean utilities, and mechanical, electrical and plumbing (MEP) systems.

    Protect expansion space and utility capacity

    Future-fit planning is about understanding where flexibility creates real value.

    An additional shaft, utility corridor, or protected expansion area may be relatively inexpensive to secure during design and extremely difficult to recreate later. Production equipment, by contrast, may be better installed when demand is clearer.

    The same logic applies to utilities and infrastructure. A site can have physical room for expansion and still be unable to add production if sufficient grid capacity, water supply, discharge capacity, or permitting headroom is not available.

    The important question is not simply what the facility needs on opening day. It is which future options the business would regret losing.

    Look at value, not only initial cost

    The lowest initial construction cost is not automatically the best investment.

    A decision that saves money during design can become expensive if it creates rework, delays commissioning, restricts expansion, or makes future products harder to accommodate. Equally, investing early in infrastructure that the business never needs ties up capital without creating value.

    This is why CapEx decisions need to consider cost, scope, and quality together. For life science manufacturing, that means planning for good manufacturing practice (GMP), qualification and process validation from the outset, so the facility can deliver the required capacity and support reliable, compliant production. It also needs to preserve enough flexibility for credible future scenarios without paying today for every possible future.

    Test cleanroom design before construction

    Some of the most valuable savings happen before anything is built.

    In the DTU Cellerator project, Ramboll used system-wide Computational Fluid Dynamics (CFD) modelling to test cleanroom performance under realistic operating conditions. The modelling showed that more airflow did not automatically improve performance.

    By optimising airflow distribution and diffuser placement, the design achieved better contamination control with lower energy demand, while allowing critical choices to be tested before construction.

    That illustrates a wider CapEx principle.

    A problem discovered in a model can still be a design decision. The same problem discovered after installation may mean rework, new equipment, recommissioning, disruption, and delay.

    The earlier a project can test assumptions about capacity, utilities, cleanrooms, energy, water, flows, and future production scenarios, the more choices remain available.

    Assess the whole facility investment

    Large facility programmes are often divided into separate workstreams: site, building, energy, water, cleanrooms, utilities, permitting, digital systems, procurement, and operations.

    The investment committee sees the total.

    A decision that saves money in one workstream while creating a larger cost somewhere else has not saved the business anything.

    That is the practical reason for bringing disciplines together early. Ramboll’s life science and pharma consulting services span site selection, energy, water, cleanroom design, permitting, engineering, and optimisation.

    Looking at those decisions together makes it possible to test them against the performance and economics of the whole facility before they become expensive to alter.

    Those questions sound simple. The answers can influence site viability, project cost, speed to production, operational resilience, and the ability to respond when products, markets, or regulations change.

    That is why the real cost of a life science facility is often decided long before construction starts.

    Ask three questions before you commit capital

    The CapEx conversation ultimately comes down to three questions:

    Showing item 1 of 3
  • 1

    What should we decide now?

  • 2

    What can we phase?

  • 3

    Which future options must we protect before capital is committed?Which future options must we protect before capital is committed?

  • Download Future-proofing your life science site

    Use the twelve questions to test your next facility investment, expansion, or major asset upgrade before the most expensive decisions become difficult to change.

    Learn more

    Contact our expert

    Anders Hummer

    Global Service Line Director - Industry & Infrastructure Facilities, Buildings

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