Infrastructure plan details £3bn savings target

Grant Prior 12 years ago
Share

Ideas on how to cut the construction cost of infrastructure projects by up to £3bn a year were launched by the Government today.

Experts at Infrastructure UK (IUK) have revealed a detailed Implementation Plan to reduce costs of civil engineering works in the water, waste, transport, energy and telecommunications sectors.

The Implementation Plan sets out a detailed programme of activity through 2011 and beyond to realise the savings which were first identified in the Infrastructure Cost Report of December 2010.

The key elements of the Implementation Plan are:

A charter between the construction industry and Government that sets out the behaviours expected in future relationships.

Detailed measures that build on those announced by the Chancellor in Budget 2011 and Plan for Growth last week which will:

o improve the ability of industry to plan effectively, by Government publishing a rolling forward programme for investment;

o encourage greater innovation by introducing new models of competition and procurement;

o increase industry confidence by developing more effective governance for public sector projects and programmes;

o reduce waste, for example by establishing a common set of principles for the management of contingency budgets; and

o improve value for money by establishing a data group between the public sector and industry practitioners to develop the extended use of cost benchmarking in infrastructure delivery.

A Joint Programme Management Board chaired by Paul Morrell, the Government’s Chief Construction Adviser, will implement the plan.

The infrastructure cost cuts will contribute to the Government’s wider commitment to reform the way in which it procures public sector construction and infrastructure to reduce costs by up to 20%.

Further detailed measures relating to wider public sector construction and procurement will be published before the end of May 2011.

Infrastructure UK is already working with the Highways Agency, High Speed 2, the Environment Agency and with private sector companies in the water industry to help embed new practice in forthcoming major programmes.

Lord Sassoon, Commercial Secretary to the Treasury, said: “Investment in the UK’s infrastructure is running at about £40 billion a year.

“We must ensure that we use public funding more efficiently and the Infrastructure Cost Review has identified savings of up to £3 billion a year.

“This report provides detailed measures that will unlock these savings, redefining the way in which Government, regulated utilities and the construction industry do business together.”

The report was welcomed by key contractors. Darren James, Managing Director of Costain said: “We look forward, together with our industry colleagues, to working with Government to deliver the benefits from the wide ranging improvement objectives set out in this report.

“The actions in this plan represent an excellent opportunity for the whole construction industry to improve the efficiency in delivering infrastructure projects and to develop more effective relationships throughout all levels of the supply chain.”

Rosemary Beales, Civil Engineering Contractors Association national director, said: “There are a lot of good ideas contained within the Implementation Plan, in particular the move to develop a visible long-term project pipeline and the plans to alter and extend regulatory cycles.

“Both these changes can offer contractors the certainty to plan and invest in skills and materials for the future, without the stop-start investment that has often prevented them from doing so in the past, driving up costs for industry, and prices for government.

“Involving contractors earlier in the procurement process will also allow them to utilise their expertise in the field to help to cut out overheads and lower costs and prices.”

She added: “However, much of the plan at this stage is based on aspiration and intention, and only when progress toward these immediate goals is reported on next year, will it be possible to tell if the government is truly committed to helping industry deliver the savings that can undoubtedly be made.”

Latest news

McLaren tops November contracts league

Excel exhibition centre £200m phase 3 wins lifts McLaren to pole position for contract wins last month
2 hours ago

Former Wates CEO joins Mace as new financial chief

David Allen replaces Richard Bienfait who stepped down in September
2 hours ago

M25 to go green under new Shell and Balfour deal

New trial of paving on UK's busiest motorway
3 hours ago

Bidders wanted for £125m painting and decorating framework

Apply now for latest Fusion21 deal
2 hours ago

Robertson wins first MIM-funded Welsh school job

£65m Flintshire school campus project first to use Welsh mutual investment model
3 hours ago

Willmott Dixon wins £130m Broadwater Farm estate revamp

Green light for north London estate transformation
3 hours ago

Materials giant CRH looks to sell contractor Farrans

More than 550 staff set to get new owner
2 days ago

West Yorkshire transport projects delayed to save £270m

Over 30 transport schemes to be placed on hold due to cost inflation budget pressure
1 day ago

Decision on A1 Costain dualling job delayed for third time

Development consent decision for £260m Northumberland scheme put back a further 9 months
1 day ago

Colas wins £140m Cheshire highways upkeep deal

Incumbent contractor Ringway will handover to Colas in April
1 day ago

Skanska to lend staff cash

Contractor links-up with finance firm to offer affordable loans to employees
1 day ago

Ilke Homes pulls off £100m record-breaking fund raise

Largest-ever capital raise by a UK modular house builder to fund expansion
2 days ago

Construction buyers fear for year ahead

"Construction companies now have a tightrope to walk in terms of being ready for recovery and cautious around investment"
2 days ago

Gove calls for competition probe into house building

Levelling Up and Regeneration Bill 'strengthened' with new measures
2 days ago

Schools get £500m for energy upgrades this winter

Extra cash found for better heating controls, insulation and energy efficient lighting
2 days ago

1,000-home North London scheme approved

Developer Hill will start work in the Spring on South Tottenham site
2 days ago

Bid race for £500m Suffolk construction framework

Construction and building services firms called up for East of England four year deal
2 days ago

Mace employs robot dog to avoid slip and trips in tunnel

Robot working in dark and hazardous conditions under Heathrow Airport
2 days ago

Administrator details confirmed at Southampton M&E firm

Begbies Traynor now in charge at Working Environments as suppliers face large losses
3 days ago

Former Galliard chief takes helm at Inland Homes

New CEO Don O'Sullivan sets out to return south east house builder to profitability
2 days ago

Applicant numbers nosedive for construction vacancies

Recruitment market gets even more competitive - how the Enquirer can help
3 days ago

Industry veteran to head Henry Bros northern arm

Peter Commins, former Kier and Balfour Beatty northern chief, to spearhead growth drive
2 days ago

Housing association shuts in-house modular factories

Swan closes loss-making steel frame and cross-laminate timber factories
3 days ago

350-homes approved around iconic London Tube station

Housing blocks to be built around Grade II-listed Hounslow West Tube station
3 days ago

Domis set for £195m Boddingtons Brewery scheme

Developer Salboy buys Manchester site to kickstart long-awaited 556 homes project
3 days ago

John Lewis £500m funding deal to build 1,000 rental homes

Deal to advance BTR flats at store sites in Bromley, West Ealing and Reading
4 days ago

Esh launches new housing retrofit division

Esh Retrofit Solutions will target market to improve the energy performance of social rented homes
3 days ago

Eric Wright wins tricky £52m Liverpool transformation

Contractor working with engineers at Ridge and Partners on "challenging" Stanley Lock Flight site
6 days ago

Investment giant buys Bristol M&E contractor

RDCP Infrastructure acquires Avon Combined Electrical Services
6 days ago

Demolition start for £50m Farnworth town centre rebuild

Caddick Construction is tipped for main works due to start in the spring
6 days ago

Contractor services